Manufacturing Sentiment Craters as Trump Tariffs Begin to Bite, Fed Surveys Show

Recent Federal Reserve surveys reveal US manufacturers’ growing concerns about Trump’s tariff plans.

The Philadelphia Fed’s April manufacturing index plunged to -26, its lowest since April 2023, while the prices paid index hit a 21-month high.

Similarly, the New York Fed’s survey showed deteriorating business expectations, with its future business climate index reaching its lowest point since 2009.

These worrying indicators emerge as Trump’s “Liberation Day” tariffs push effective US tariff rates to their highest level in a century, with economists warning of increased inflation and slower economic growth.