As President Donald Trump prepares to unveil sweeping new tariffs, U.S. manufacturers are sounding the alarm over the growing uncertainty. A new survey from the Dallas Federal Reserve reveals rising concern across the sector, particularly in Texas, where 84 firms described struggling to make key business decisions amid rapidly shifting trade policies.
The “uncertainty index” in the Fed’s monthly report hit its highest level since late 2022. Many firms expressed frustration not just with tariff levels but with the erratic, unpredictable nature of policymaking.
“The ball is constantly moving. This is truly ridiculous,” one mineral-product manufacturer said.
Key concerns include:
- Rising input costs with no clarity on future pricing.
- Lost international business opportunities.
- Fear of long-term damage to sectors like auto manufacturing, which relies heavily on imported parts.
Despite some businesses maintaining optimism, many echoed a common theme: uncertainty is more damaging than the tariffs themselves.
Trump’s administration has already raised the effective U.S. tariff rate from 2.5% to 9%, its highest since World War II, and could raise it to 13% after the latest round.
A potential 25% tariff on all foreign vehicles and parts could hit the auto industry particularly hard, affecting companies whose products cross borders multiple times.
Some firms remain hopeful that the upcoming announcement will offer clarity and open the door to negotiation. But for now, anxiety is growing.
“We need to make decisions,” one executive said. “But we can’t when everything keeps changing.”
