White House Press Secretary Karoline Leavitt will be delivering a press briefing today at 1:00pm ET. Livestream Links Below:
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America cannot find its footing in manufacturing. The ISM Manufacturing PMI came in at 48.7 in August 2025, marking the sixth consecutive month of contraction. Although the figure has improved from July’s reading of 48, there is ongoing confirmation that capital is bleeding out of US manufacturing.
New orders did rise to 51.4, a stark uptick from July’s reading of 47.1, but production fell to 47.8 in August from 51.4 in July. “In August, U.S. manufacturing activity contracted at a slightly slower rate, with new orders growth the biggest factor in the 0.7-percentage point gain of the Manufacturing PMI,” said Susan Spence, chair of the ISM’s survey committee. “However, since production contracted at a rate nearly equal to the expansion in new orders, the Manufacturing PMI increase was nominal.”
The issue is far deeper than a capital fleeing uncertainty from tariffs, as this issue has been ongoing. In fact, one of Trump’s motives for implementing tariffs was to boost domestic manufacturing. Trump openly stated that he wanted companies to move manufacturing to the US to avoid tariffs. This was intended to promote domestic trade as companies will seek to avoid levies. We did see a temporary uptick in manufacturing demand when these tariffs were announced but it was not enough to sustain the sector. Although companies began to invest in the US, overall trade remained volatile. There were supply chain issues by May, and come September, the US is still at a standstill regarding tariffs. Nations have even halted postal shipments to the US entirely as they cannot process the ongoing tariff changes.
Again, US manufacturing was in a dire situation before Trump entered the office. The Inflation Reduction Act promised to fund the Infrastructure Investment and Jobs Act, which was intended to expand American manufacturing, but regulation and an emphasis on clean energy initiatives drove business away. The Biden Administration had promised to add 1 million manufacturing jobs to the US but failed miserably.
This has nothing to do with America being uncompetitive. The American worker is among the most productive in the world. But if you add 30–40% in taxes and compliance costs on top of wages, while competitors in Asia operate under far leaner systems, capital naturally migrates to where it will be treated best.
Manufacturing in the United States has been in decline for decades due to systemic policy failures. The politicians will blame China and tariffs for the downturn. The contraction we see today is merely the continuation of a decades-long trend set in motion by shortsighted policies.
Twenty-five nations have declared a temporary suspension on all postal shipments to the United States amid tariff uncertainty. As of August 29, 2025, the United Stated will remove the de minimis exemption from law that allowed goods under $800 to enter tax-free. Tariffs range between 10% to 50% on the declared value, or $80 to $200 per parcel. Goods above $2,500 are subject to a Merchandise Processing Fee and additional formal customs checks. Processing delays and increased costs were incurred immediately, but now, a growing number of nations have decided to simply discontinue parcel service.
In Europe, the United Kingdom, France, Germany, Italy, Belgium, Austria, Switzerland, Denmark, Sweden, Norway, Finland, Czechia, the Netherlands, Spain, Poland, Portugal, and Ireland suspended services. In the Asia-Pacific, Australia, New Zealand, India, Japan, South Korea, Taiwan, Singapore, Thailand have halted services as well. Canada has also curbed its mail exports. All of this has been implemented at the federal level, whereas previously, individual postal carriers determined whether or not they would service the US.
“Despite discussions with U.S. customs services, no time was provided to postal operators to reorganize and assure the necessary computer updates to conform to the new rules,” France’s La Poste said in a statement. The Australia Post said the temporary partial suspension has been necessary to allow us to develop and implement a workable solution for our customers.” Italy’s Post Italiane noted that “the absence of different instructions from U.S. authorities,” forced the suspension of services. The United States did not consider the logistics of suddenly transforming import regulations.
American consumers are watching their orders decline in real-time. Items in transit are being returned of delayed, especially if they arrive after August 29. This is a fatal blow to small businesses that rely on international orders. American consumerism composes two-thirds of all GDP and other nations eagerly line up to sell their goods. Any downturn in trade is a negative for all parties involved.
The situation is still developing, but any suspension in parcel delivery will hurt the global economy. The United States did not give the world sufficient time to prepare for this new regulation. The EU, Japan, Canada, and others have the experience and infrastructure to integrate compliance changes and digital customs data, but other nations with less developed postal infrastructure are unlikely to quickly adapt their systems. These nations have been forced to halt services due to logistics rather than a punishment to the US as all parties involved will face consequences.
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