Trump Tariffs Push Manufacturers to Consider Production Outside U.S.

The Institute for Supply Management’s July survey is flashing a disturbing signal: While manufacturers are experiencing healthy demand in the U.S., they’re considering expanding outside the country to avoid tariffs in a widening trade war.

“Uncertainty is the biggest enemy of business,” and escalating tariffs on more and more products are causing “concern about where to invest and how much,” Timothy Fiore, chairman of the ISM manufacturing survey, said on a conference call with reporters Wednesday. The group reported that U.S. manufacturing cooled in July by more than projected, with a gauge of new orders falling to the lowest level in more than a year.