NASHVILLE, Tenn. (WKRN) — A new round of tariffs proposed by President Donald Trump is raising alarm bells in manufacturing hubs like Tennessee.

In just the last few months:

• Bridgestone closed its plant in La Vergne, affecting 700 workers.
• Adient, an auto seat maker, shut down two facilities in Columbia and Lexington, cutting over 400 jobs.
• Perdue Farms closed its poultry plant in Monterey, laying off 433 employees.

Trump's latest executive order, signed late last week, proposes sweeping changes to import duties. The revised tariff rates include a 10% baseline across all imports with country-specific increases of 35% for Canada, 25% for India and 20% for Taiwan, according to a release from the Trump campaign and White House archives. The tariffs are scheduled to take effect on Aug. 7 after two previous delays.

Economists and employees across Tennessee said manufacturing and construction could see sharp cost increases and a slowdown in hiring.

Tennessee ranks among the top 10 states for auto parts exports, with nearly 350,000 jobs tied to manufacturing, according to the National Association of Manufacturers and state labor reports. Though proposed tariffs on steel, machinery, and parts are putting that workforce at risk.

"They are either going to have to eat that higher cost or pass it on to consumers and as a result, employers right now are not sure what to do," Dr. Andy Borchers, a business professor at Lipscomb University, said. "They don't want to do mass layoffs, but that means also they aren't going to incrementally hire. And in construction, where jobs come and go, the answer is not to start up a new project because you're uncertain."

The uncertainty is already impacting development in the state.

"There have been a number of builders that have been backing off on both commercial and residential because of the uncertainty in the economy," Borchers added.

From factory floors to job sites, the effect is being felt in slowed momentum and cautious planning.

Nationally, the numbers echo that concern. The U.S. manufacturing sector lost 11,000 jobs in July following a loss of 15,000 in June, according to The Hill and the latest jobs report. The slowdown comes amid already elevated interest rates, which experts say are discouraging borrowing and new investments.

"Manufacturing, again, there's also uncertainty, and when there's uncertainty, employers tend to back off," Borchers said.

Trump's campaign said the tariffs are aimed at protecting U.S. industries and cracking down on illegal drug trafficking across trade routes.

News Source : https://www.wkrn.com/news/local-news/tennessee-manufacturers-brace-for-impact-as-trump-tariff-plan-moves-forward/