U.S. Manufacturing Today Podcast

Episode #8: Reset in Progress: American Manufacturing Reimagined

All Episodes

‍

‍

In this episode of U.S. Manufacturing Today, sponsored by Veryable, host Matt Horine discusses the latest trends affecting American industry, focusing on port traffic slowdowns, tariffs, and trade policies. The podcast delves into China's recent tariff exemptions on US imports and the broader implications for global trade. It highlights surprising job growth in sectors like shipping, warehousing, and manufacturing, and discusses recent policy changes impacting the trucking industry. The episode also explores how traditional retailers are adapting to recent tariff adjustments and the closure of de minimis loopholes. Key insights include the importance of reshoring and reindustrialization, shifts in consumer behavior, and the strategic recalibration between the US and China. Listeners are encouraged to stay informed about these developments to better plan their strategies.

‍

‍

Links

‍

‍

Timestamps

  • 00:00 Introduction and Overview
  • 00:24 Current State of U.S. Ports
  • 1:03 China's Trade Policy Adjustments
  • 01:36 U.S. Economic Indicators and Job Growth
  • 02:26 Trucking Industry Challenges
  • 03:24 Impact of Low-Cost Import Platforms
  • 04:59 Reindustrialization and Consumer Behavior
  • 05:46 Conclusion and Future Outlook
  • 07:15 Closing Remarks and Resource

‍

‍

Episode Transcript

[00:00:00] Welcome back to U.S. Manufacturing today, sponsored by Veryable where we break down the trends shaping American industry from the shipping lane to the shop floor, and every policy ripple in between. I'm your host Matt Horine, and today we're diving into a sea of developments and tariffs, trade policy, job growth, and what all this means for the future of American manufacturing.

‍

Let's start with what you're seeing or maybe not seeing at our ports. Traffic at major U.S. ports has slowed to a crawl. After years of frenzied imports, especially through e-commerce channels and di minimis loopholes, the current landscape looks a little different. Ships are docking, but not as frequently. Warehouses that were once jammed are seeing more breathing room or vice versa. They did a pull forward and are now overstocked with inventory. If you take a look on Vessel Finder, which is a great resource, you'll see ports with very low traffic. Part of this comes from increased enforcement and newly announced tariffs, but there's also a global [00:01:00] shift happening, one that starts with China.

‍

Here's something being quietly reported today. China has exempted about 25% of U.S. imports from their own tariffs. Now, why would they do that? It's pretty simple. Their export machine is sputtering and domestic demand isn't making up the difference. This is about more than just policy. It's a survival mechanism. The Chinese government knows that to keep factories open, they need U.S. buyers, but they may not say it loudly, but this is an olive branch in the trade negotiation process, a sign of economic stress, and maybe some strategic recalibration.

‍

Now let's talk a little bit more macro. The latest GDP numbers fell a little flat missing the Atlanta Feds projection by over two full points. That's a big miss and pretty common for the Atlanta Fed, but here's where it gets interesting. The soft GDP wasn't due to a drop in industrial output or manufacturing employment. In fact, actual drop growth in sectors like shipping, warehousing and manufacturing has surprised to the upside [00:02:00] overall.

‍

You're also seeing other interesting numbers start to emerge. Last month's jobs report beat expectations again with strong growth in supply chain related roles. In April, 2025, the transportation and warehousing sector saw a net increase of 29,000 jobs. That's important. These are higher multiplier jobs, and when a manufacturer hires that creates demand for freight packaging and local economies. The real economy. And speaking of logistics, let's revisit a topic from episode 6. You may remember our guest, Shannon Everett, with American Truckers United and some of the challenges that the trucking industry has been seeing for some time. Last week an executive order that tightened English proficiency requirements for commercial driver's license holders was issued. The EO made headlines not just for its enforcement implications for, but for what it says about safety and standards in our domestic freight network. The Secretary of Transportation, Sean Duffy, put it pretty plainly: when you're hauling 80,000 pounds on US highways. Being [00:03:00] able to read the sign that says Bridge out ahead isn't a luxury, it's a necessity.

‍

Since then, we've seen both private carriers and regional fleets adjust quickly working to boost compliance and even increase pay to attract domestic CDL holders. That's not just a labor story. It's part of the broader reshoring methods and what we could call repro professionalization of the supply chain.Shifting the focus a little bit. Let's talk about importer. Temu, and Shein were already rewriting the rules of retail long before tariffs hit them directly. These ultra low cost platforms flooded the market with products that side sidestep traditional duties and quality standards. The results were a little bit of chaos.Traditional retailers really couldn't compete with that. U.S. brands were forced to cut cost or chase price points they couldn't sustain, and the long-term effect was deeper. Consumer expectations began to shift. They got used to $5 jackets, $3 phone chargers, and next day delivery on products that never passed through a US [00:04:00] customs warehouse. Somewhere around 150 million Americans were using those apps on a daily basis. It drives an incredible amount of consumerism, but if our consumer confidence indexes incorporate these types of cheaper buys, and that suddenly reflects pessimism and confidence, that may not be real confidence. In light of those recent tariff adjustments and the closure of those de minimis loopholes, major retailers are adapting their strategies and finding ways to win is a great example. Walmart is initiating a program to support small businesses as domestic alternatives, but there are some that are doing it a little differently while Amazon plans to transparently pass increased cost to consumers. After previously stating that they would publish the tariff cost and the impact directly to that consumer, they did a little bit of a turnaround there.

‍

This shift underscores a broader movement towards reindustrialization and supply chain transparency in the U.S. and really is a way to win when you're helping small businesses, the backbone of manufacturing. [00:05:00] So that 30 day trail from Liberation Day to today is finally here. And while tariffs may be raising prices in the near term, they're also creating real opportunity to recondition consumer habits, which leads to our next point.

‍

What if the shift in consumer behavior isn't just a challenge but a preview? The same way Americans are reconsidering fast fashion and cheaper gadgets? There's a parallel conversation happening in B2B and industrial supply chain. We're seeing buyers ask more often. Where is this made? How long will it last and can I get support domestically? That mindset is a win for American manufacturing. If we're ready to seize it, if we can deliver quality consistently, and reliability, not just low cost, then the next industrial wave won't be just made in America. It'll be valued in America. And finally, here's the high level perspective.

‍

Treasury Secretary Scott Bessent recently made a subtle but profound point. This isn't just about trade balances, it's about consumerism. His message was clear. The U.S. is trying to balance its consumer [00:06:00] behavior with China, not just trade flows. That means looking beyond deficits and surpluses and asking, are we too dependent on Chinese production for our daily consumption? Are we fueling their growth at the expense of our resilience?It's a great question and a great end result would be balancing out. The consumerism in the Chinese market where they're bringing in more American imports. This goes beyond just economics. It's very geopolitical and strategic. It's about shaping a future where America doesn't just buy from the world, but builds for it. So what does all this mean? Port traffic is slowing, but that's not a sign of weakness. It's a reset. China is recalibrating, and the US is responding with smart, targeted policies. GDP Enjoyers are slightly down. While GDP growth is good for all of us, growth in the right sectors is critical and an actual health measure, but the industrial core is strengthening.The right kind of growth jobs are growing in sectors that actually build things supported by policy, not just by [00:07:00] chance. And consumer behavior is changing, and that shift could echo throughout the industrial economy. The chaos brought by unchecked de minimis loophole is finally being addressed and in the process we're glimpsing of future where America makes more ships more and depends less.

‍

Thanks for joining us today, and we have exciting guest planned for the next couple of shows, so be sure to stay tuned and to stay ahead of the curve and to help plan your strategy, please check out our [00:26:00] website at www.veryableops.com and under the resources section titled Trump 2.0, where you can see the framework around upcoming policies and how it will impact you and your business. If you're on socials, give us a follow on LinkedIn, X, formerly Twitter, and Instagram. And if you're enjoying the podcast, please feel free to follow the show on Apple Podcasts, Spotify, or YouTube, and leave us a rating and don't forget to subscribe. Thank you again for joining us and learning more about how you can make your way.