Introducing the highest U.S. tariffs since the Great Depression, President Donald Trump made a clear promise in the spring: “Jobs and factories will come roaring back into our country.”

They haven’t.

Manufacturing employment has declined every month since Trump declared “Liberation Day” in April, saying his widespread tariffs would begin to rebalance global trade in favor of American workers. U.S. factories employ 12.7 million people today, 72,000 fewer than when Trump made his Rose Garden announcement.

So while tariffs have protected American manufacturers such as steel mills from foreign competition, they have raised costs for many others. Auto and auto parts employment, for example, has dipped by about 20,000 jobs since April.

“2025 should have been a good year for manufacturing employment, and that didn’t happen. I think you really have to indict tariffs for that,” said economist Michael Hicks, director of the Center for Business and Economic Research at Ball State University in Muncie, Indiana.

Small and midsize businesses have found Trump’s on-again, off-again tariffs especially vexing. Fifty-seven percent of midsize manufacturers and 40 percent of small producers said, in a November survey by the Federal Reserve Bank of Richmond, that they had no certainty about their input costs. Only 23 percent of large manufacturers shared that complaint.

Smaller companies also were more than twice as likely to respond to tariffs by delaying investments in new plants and equipment, the survey found. One reason could be that taxes on imports raise the price of goods used in production much more than they do for typical consumer items, according to a study by the San Francisco Fed.

Industries producing more technologically complex goods such as aircraft and semiconductors also are paying an outsize price, according to Gary Winslett, director of the international politics and economics program at Middlebury College. Makers of semiconductors, for example, shed more than 13,000 jobs since April.

“They’re the ones who need the imported inputs. Really advanced manufacturing is actually what’s getting hit the hardest,” Winslett said.

Trump’s tariffs, however, are not the industrial sector’s only headache. Factory payrolls began their post-pandemic decline in early 2023, almost two years before Trump returned to the White House.

High interest rates and a shift in consumer spending patterns are hurting the nation’s manufacturers, economists said. Business loans are more than twice as expensive as they were four years ago, with banks charging their most creditworthy borrowers interest rates of 6.75 percent. That discourages businesses from expanding operations and hiring additional workers.

After bingeing during the height of the pandemic on durable goods, consumers have gradually redirected their spending to in-person services. Money that once went to makers of furniture, televisions and exercise machines now goes instead to restaurants and entertainment venues.

In Indiana, the spending switch can be glimpsed in the fortunes of the recreational vehicle industry, a local mainstay. RV shipments soared to more than 600,000, a record, in 2021 as consumers trapped at home by the pandemic hit the road. But by 2024, the work-from-home era was over, and sales fell by nearly half. Thor Industries, the largest RV manufacturer, laid off several hundred workers last year as demand flagged.

Once Trump returned to the White House, manufacturers responded by over-ordering imports to beat the anticipated tariffs. That has left many producers with more inventory than they need, suggesting that cuts lie ahead, according to Ball State’s Hicks.

“The manufacturing job losses that we see now are really just the beginning of what will be a pretty grim couple of quarters as manufacturing adjusts to a new lower level of demand,” he said.

Modest numbers of manufacturing jobs have been trimmed throughout the economy. In December, Westlake Corp., a Houston-based producer of industrial chemicals, said it would idle four production lines at facilities in Louisiana and Mississippi, putting 295 employees out of work. Speaking on an investor call, company executives blamed excess global capacity and weak demand for the move.

While the jobs that Trump promised have not materialized, factory output rose in 2025, reaching its highest mark in almost three years, according to Federal Reserve data, and administration officials say it is only a matter of time before the full benefits of the president’s plan are felt.

Trump’s tariffs and jawboning encourage CEOs to invest in new U.S. plants, officials say. Provisions in the president’s signature fiscal legislation permitting companies to quickly write off the full expense of new investments in equipment, as well as research and development expenses, will spur modern manufacturing, they have said.

“It also encourages the build-out of high-precision manufacturing here at home, which will lead to high-paying construction and factory jobs,” Treasury Secretary Scott Bessent said in a speech this month.

Companies are spending more than three times as much on constructing new factories as they did when Trump was first inaugurated, though less than during the Biden-era peak. The White House last fall hailed recent investment announcements by companies such as Stellantis and Whirlpool. Last month, T. RAD North America, a subsidiary of a Japanese manufacturer, announced plans for a new auto parts plant in Clarksville, Tennessee, which would employ 928 workers.

Nick Iacovella, a spokesman for the Coalition for a Prosperous America, which backs Trump’s manufacturing policies, said the roughly 1 percent shrinkage in factory employment last year was less significant than the uptick in business investment.

“We saw a significant increase in capital expenditures, which is the earliest signal that reindustrialization is taking hold. Those investments take time to permit, build and staff before they show up in employment data,” he said.

The president’s hopes of increasing manufacturing employment defy decades of experience in the United States and other advanced economies. American factory jobs peaked at 19.5 million in the summer of 1979 and have been sliding ever since, largely because of the introduction of machinery that can do the job of several workers.

As two presidents sought to revive domestic production over the past decade, manufacturing employment rode a roller coaster. Factory jobs increased by 421,000 during Trump’s first term before sinking by more than 1 million during the pandemic. President Joe Biden used government subsidies to encourage hiring, especially for green-energy projects, and manufacturing payrolls rose more than 100,000 above Trump’s highest mark.

But those gains evaporated by the end of 2024.

On Tuesday, the president addressed the Detroit Economic Club, touting “the strongest and fastest economic turnaround in our country’s history.” He boasted about growth, productivity, investment, incomes, inflation and the stock market.

“The Trump economic boom is officially begun,” the president said.

All that’s missing now are the jobs.