Tue Jul 08 09:14:31 UTC 2025: **Headline: Trump’s Looming Tariffs Threaten Global Recession Despite Efforts to Revitalize US Manufacturing**
**Washington D.C.** – The global economy is bracing for potential turmoil as President Donald Trump’s July 9th deadline for imposing significant tariffs on a broad range of trading partners approaches. On Monday, Trump announced tariffs ranging from 25 to 40 percent on 14 countries, including key US allies like Japan and South Korea. The move has sparked concerns among economists who fear the escalating trade tensions could trigger a global recession.
Trump’s administration argues that tariffs will revitalize US manufacturing, protect American jobs, and reduce the trade deficit. He believes tariffs will incentivize consumers to buy American-made goods, increase tax revenue, and boost domestic investment. This is in part why the Trump Administration has highlighted investments announced by automakers, tech firms and chocolate companies, among others.
Despite the push, experts caution that rebuilding the manufacturing sector to its former glory is a daunting task. The sector accounted for 9.7 percent in 2024 of GDP, and is missing key elements like a skilled workforce, sufficient government support, and cutting-edge technology.
The Institute for Supply Management (ISM) Manufacturing Index, a key indicator of economic activity, registered contraction for the fourth consecutive month in June, at 49 percent. However, the decline has slowed. This lack of clarity has left businesses unable to make long-term plans.
In June 2025, approximately 12.75 million Americans were employed in manufacturing, an increase from 11.95 million in June 2020 but still significantly below the nearly 20 million jobs held in the sector in the late 1970s. Job openings in the sector increased in May, but actual hiring declined, highlighting labor market uncertainty tied to the Trump administration’s tariff policies.
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