"We'll need to accept the presence of tariffs," says PMI.

In July, the manufacturing sector experienced accelerated contraction, with the Institute for Supply Management's Purchasing Managers' Index dropping to 48%, indicating a decline in supplier deliveries and employment despite a slight production increase. Tariffs have prompted companies to reconsider sourcing strategies and potentially pass on costs to customers. While new and backlog orders showed positive growth, employment indexes fell, signaling caution in hiring. Overall, there are concerns about reduced demand and inflationary effects from tariffs, but some manufacturers remain hopeful for future stability through trade deals.