U.S. manufacturing production reported no growth in July as tariffs squeeze costs

U.S. manufacturing production saw no growth last month compared to June as tariffs continue to take a toll on domestic businesses. 

Domestic manufacturing production did not change from June, which saw a 0.3% increase from May, according to new data released Friday from the Federal Reserve. 

Mining dropped 0.4% while utilities decreased 0.2%. Overall, industrial production dipped 0.1% in July, the Fed said, 1.4% higher than its level the same time last year. 

This new report from the Fed could indicate that U.S.-based manufacturing is starting to slow down as companies fare against steep global tariffs. 

President Donald Trump introduced global tariffs back in April, and last Thursday put new tariff rates in place for nearly 70 countries after giving international exporters time to negotiate new trade deals. Trump’s tariffs range from 10% to as high as 50% and attempt to push manufacturing back to the U.S. 

However, as U.S. factories pay higher costs for imported materials, production output could actually backslide.

On Friday, Trump told reporters aboard Air Force One, as the president traveled to meet with Russian President Vladimir Putin, that he plans to set tariffs on steel and semiconductor chips as soon as next week. 

Currently, imported steel has a 50% tariff rate — as does imported copper and aluminum. 

So far, Goldman Sachs analysts said that U.S. companies have taken on the bulk of tariff-related costs, with only 22% of them passed onto consumers through June, Bloomberg reported. However, this will soon change, the firm said, as businesses pass more of the burden on to consumers.