One of President Donald Trump’s electoral promises was to use a slate of incentives and disincentives, including his tariffs on foreign goods, to persuade businesses to move back to the United States, and just over fourteen months into his second term it appears to be working.
According to the Institute for Supply Management’s Manufacturing PMI index, economic activity in the manufacturing sector rose for the third consecutive month in March. The report noted that out of the five subindexes that impact the Manufacturing PMI, three of those indexes are in an expansion phase.
The report notes that thirteen industries registered expansion in March, including key industries like computer and electronic products, transportation equipment, electrical equipment, machinery, appliances, primary metals and nonmetallic mineral products and textile mills.
The manufacturing index for the Federal Reserve Bank of Philadelphia experienced its fourth consecutive increase in April, rising from 18.1 in March to 26.7 in April. That increase in productivity is translating to higher wages and compensation according to a survey conducted by the Federal Reserve Bank of Philadelphia.
Firms were asked if they experienced wage growth and 46 percent of the firms stated a rise in both wages and total compensation costs over the past three months. 52 percent of the firms stated they expect wages to increase in their 2026 plan for wages and compensation.
Then there are the large companies deciding to return to the U.S. to open their plants and allow American-made products to reenter the market.
In April, U.S. Steel announced plans to restart its Gary Tin Mill in Indiana by early 2027, giving a jumpstart to American made tin after decades of reliance on foreign tin. The reopening is in part a response to President Trump’s Section 232 tariffs on steel, aluminum and copper which are forcing companies to source certain metals from more affordable options, including restarting the industry in the U.S.
In a statement announcing the reopening, U.S. Steel noted that the restart is being conducted under the belief that “demand can be met by increased U.S. production when market conditions allow for fair competition.”
The announcement also noted that that the reopening is intended to “provide customers greater access to reliable, American made tin mill products—mined, melted, and made in America—as part of a more balanced domestic supply mix.”
For years the U.S. has relied on foreign tin, with the majority of tin imported from South America. As manufacturing picks up, American made tin, found in items like alloys for electronics and tin packaging, can be made in the U.S. The shift brings tin manufacturing back to the U.S. after decades, with the U.S. Geological Survey noting that tin has not been smelted in the U.S. since 1993 and has not been mined since 1989.
Steel is far from the only industry returning to do business in the U.S. In August 2025, Apple announced a commitment of $600 billion to increase manufacturing across the U.S., with the company noting that the investments would bring in 450,000 jobs.
Nvidia is already manufacturing AI chips in Arizona, with the company pledging in April 2025 to produce $500 billion in products in the U.S. over the next four years.
Johnson & Johnson announced $55 billion in investments over the next four years in March 2025. It is already delivering on that investment, with the company announcing in Feb. 2026 that it is investing $1 billion in a next generation cell therapy manufacturing facility in Montgomery County, Pennsylvania. The new site will provide 4,000 construction jobs and 500 skilled manufacturing jobs.
While inflation is still a significant economic factor looming over the country, and the squeeze on oil prices due to the closure of the Strait of Hormuz isn’t helping, there is evidence that the Trump Administration’s tariff policies on foreign goods and efforts to incentivize businesses are creating a reemergence of the American manufacturing sector. These are areas of growth that are rarely covered in the mainstream media, and yet they are significant achievements. These positive signals indicate that the U.S. is becoming more self-reliant and business-friendly, and long-term those two variables will make the U.S. stronger and safer.
Manzanita Miller is the senior political analyst at Americans for Limited Government Foundation.
