Expert Analysis | The ‘Liberation Day’ tariffs were supposed to revive US manufacturing. So far they have not.
One year after Trump’s “Liberation Day” tariffs, the hoped-for revival of US manufacturing has yet to materialize, write Geoffroy Feij and Ron Stoop. Investment, construction spending, and employment all fell between April and December 2025, while production growth remained marginal. High tariffs on imports – many of which are essential intermediate goods – have raised costs for American companies without boosting output. Combined with labour shortages and policy uncertainty, these measures highlight the limits of broad import tariffs as a tool for re-industrialisation and offer cautionary lessons for Europe.
