Jay Allen, a supporter of President Donald Trump who voted for him expecting tax cuts and deregulation, says the tariffs central to Trump's economic agenda have devastated his manufacturing business in northeast Arkansas. Allen Engineering Corp., which produces industrial equipment for concrete work, has seen costs surge for imported engines, steel, gearboxes, and clutches needed to build power trowels worth up to $100,000 each.
Allen's experience reflects growing evidence that Trump's tariffs, intended to bolster American factories, are instead harming many. The problem could worsen as the administration seeks new tariffs after the Supreme Court ruled emergency import taxes illegal in February. Allen said his company operated at a loss in 2025 due to tariffs, with payroll falling from 205 to 140 workers. He has raised prices by 8% to 10%, risking lower sales.
“What’s really sad is the unintended consequences of his tariffs are hurting manufacturing in our country,” Allen said. “Unfortunately, the working-class people are getting squeezed.” Manufacturing jobs have declined during Trump's first year back, with 98,000 lost in his first full 12 months. Companies are suing for over $130 billion in tariff refunds, while the federal deficit is projected to rise.
The White House argues that construction spending is high, more workers are being hired for factory building, and labour productivity is increasing, which could eventually fuel a revival. Pierre Yared, acting chairman of the White House Council of Economic Advisers, said, “It takes time to get production online, and therefore it will be some more time before we fully materialize the benefits of the president’s policies.”
However, some bright spots in construction stem from Joe Biden-era programs. Factory construction spending accelerated in 2022 due to Biden's CHIPS and Science Act, which subsidised computer chip plants. Skanda Amarnath of Employ America noted that while construction spending on factories has slipped under Trump, it remains high largely due to ongoing Biden-era projects in Arizona, Texas, and Idaho. Amarnath added that interviews with businesses show no overall manufacturing uptick from Trump's tariffs.
Trump has taken over 50 tariff actions, with frequent announcements, reversals, and legal challenges creating uncertainty for small manufacturers. Allen Engineering imports 75-horsepower diesel engines from Germany; building them in the US would require a $20 million investment, a risky move given unclear tariff status. “Are engine-makers going to spend that kind of money to move production from Germany to the U.S. when they don’t know what the landscape is going to be in three years?” Allen asked.
