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lite.cnn.com - on gopher - inofficial | |
ARTICLE VIEW: | |
‘Tariff Bingo is tough.’ Texas manufacturers sweat Trump’s | |
tariffs, high interest rates | |
By Matt Egan, CNN | |
Updated: | |
4:22 PM EDT, Mon August 25, 2025 | |
Source: CNN | |
Texas manufacturers continue to express frustration over the Trump | |
administration’s volatile tariff playbook and the impact of high | |
borrowing costs. | |
“Tariff Bingo is tough,” one furniture manufacturer told the | |
Federal Reserve Bank of Dallas in a released Monday. “We are probably | |
going out of business within 90 days.” | |
A transportation equipment maker warned the trucking industry | |
“remains depressed” as the industry grapples with “ever-changing | |
tariffs.” | |
“It seems like there is lots of uncertainty in our industry with | |
these goofy tariffs being a big part of the reason,” a printing | |
manufacturing executive said, adding they are “very worried about | |
what the next six months will bring.” | |
The comments underscore how a key Trump program – historically high | |
tariffs – is hurting some of the same businesses it’s intended to | |
help. | |
President Donald Trump’s sweeping tariffs are designed to boost | |
domestic manufacturing jobs, giving companies a major incentive make | |
more products in America instead of importing them. | |
However, so far, the chaotic policy rollout has and heaped even more | |
pressure on US manufacturing. | |
For instance, nearly half (48%) of businesses said they’ve been hurt | |
by higher tariffs this year. The pain was more widespread for | |
manufacturers, where 70% of those surveyed said they’ve been | |
negatively impacted by higher tariffs this year. | |
About 80% of the businesses hurt by tariff hikes said they have either | |
passed cost increases to customers or plan to. | |
“These tariffs will increase our costs and will be passed on to our | |
customers’ new orders, which are typically industrial and military | |
users,” a computer and electronics maker told the Dallas Fed. | |
While the tone of the comments from manufacturers was negative, the | |
Dallas Fed said a metric on new orders turned positive for the first | |
time since January. | |
Still, high tariffs and significant uncertainty over trade policy have | |
caused the Federal Reserve to hold off on lowering interest rates, for | |
now at least. However, with the labor market on shaky ground, Fed Chair | |
Jerome Powell last week interest rates soon. | |
“It is time to cut interest rates before it is too late. The world is | |
doing it in order to prepare their economy for the effects of trade | |
tensions,” the electronics executive said. | |
A machinery maker complained that the Trump administration’s promise | |
to accelerate oil production hasn’t panned out. | |
“’Drill, baby, drill’ was a great mantra, but it isn’t | |
delivering to the folks in the industry,” the executive said. “And | |
what’s with a Federal Reserve that refuses to reduce interest rates? | |
Chair (Jerome) Powell should cut the rate now.” | |
A paper manufacturer expressed hope that Trump’s sweeping tax and | |
spending cut package, known as the , will help the industry soon. | |
“We have been treading water since the first of the year and it is | |
starting to get tired,” the executive said. “The OBBB is somewhat | |
of a life preserver but we need activity in manufacturing to pick up | |
sooner than 2-3 years from now.” | |
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