In March, the manufacturing sector experienced a setback, returning to contraction as companies faced uncertainty over the Trump administration’s tariff policies. The Institute for Supply Management reported a Purchasing Managers’ Index (PMI) of 49%, indicating economic decline, with new orders dropping significantly due to disputes over tariff-related costs. Experts noted that while tariffs may not be inherently inflationary, they could raise living costs in the U.S., prompting wage demands. Despite potential growth in domestic manufacturing, prices for consumer goods are expected to rise.

Source: https://www.supplychaindive.com/news/pmi-march-2025-tariffs-demand-trump/744108/