Key Points:
- The United States economy has lost over 100,000 manufacturing jobs since last year.
- Whirlpool recently laid off workers at its historic Amana, Iowa, refrigerator plant.
- The company blames supply chain issues and supports President Trump’s trade tariffs.
- Critics argue that tariffs increased material costs by $300 million and failed to protect local jobs.
Beverly Dawson thought she had a secure future building refrigerators in Amana, Iowa. Instead, she found herself out of a job this month. Whirlpool, the company that owns the historic Amana plant, laid her off during its latest round of cuts. Her son also lost his promise of a full-time job at the factory after he graduated from college. Now, only her husband remains employed at the facility that once served as the beating heart of their small eastern Iowa town.
Dawson is just one of more than 100,000 American manufacturing workers who have lost their jobs since President Donald Trump took office last year. During his campaign, Trump promised a massive manufacturing boom. Once in office, he launched broad global tariffs, arguing these taxes on imported goods would protect American businesses and revitalize factory production.
However, the reality on the ground looks very different. The long, slow decline of US manufacturing continues, driven by complex global supply chains, increasing automation, and shifting exchange rates. Since peaking in 1979, the country has shed over 7.5 million manufacturing jobs.
The Amana plant holds a special place in American appliance history. In 1949, workers there introduced the first side-by-side refrigerator to the United States. Today, the factory employs roughly 950 people, less than half its former size. The International Association of Machinists and Aerospace Workers union, which represents the Amana employees, claims Whirlpool is steadily expanding its production in Mexico while shrinking its US footprint.
“Whirlpool advertised quite often that they’re the only American manufacturer of refrigerators, and tariffs will only be beneficial,” Dawson said. She feels confused and betrayed, noting she does not understand how the company can claim to support American workers while opening more facilities in Mexico. When she walks into her local hardware store, she feels frustrated by new Whirlpool refrigerators bearing “Made in Mexico” or “Made in China” labels.
Despite the layoffs, Whirlpool actually supports President Trump’s tariff strategy. Chad Parks, a spokesperson for the Michigan-based company, stated that the administration’s trade policies are absolutely critical to closing loopholes and leveling the playing field for US manufacturers. Whirlpool argues that because it produces most of its appliances at 10 different plants inside the US, tariffs give it an advantage over Asian rivals like LG and Samsung.
However, the numbers tell a complicated story. While tariffs aim to protect domestic companies, they also increase the cost of raw materials. Last year, Trump imposed 50.0% tariffs on imported steel and aluminum. These taxes directly hit Whirlpool, increasing the company’s raw material costs by a staggering $300 million. The company also had to pay significantly more for specific appliance parts that are only manufactured overseas.
Economists argue that the government’s approach to trade ignores how modern businesses operate. Susan Houseman, an economist at the Upjohn Institute for Employment Research, explained that supply chains are deeply integrated across multiple countries. She noted that companies cannot simply turn on a dime and rearrange their entire supply chain overnight just because tariffs change.
The appliance sector is also suffering from a general drop in consumer demand. Fewer people are moving into new homes right now, leaving big-ticket items like refrigerators and dishwashers sitting untouched in stores. As a result, Whirlpool saw its total sales drop by 6.5% last year, causing its stock price to decline by roughly 35.0%. Jason Miller, a professor of supply chain management at Michigan State University, pointed out that while the tariff rate on major home appliances increased from 5.0% to 16.4% in December, this increase was not high enough to meaningfully help domestic manufacturers, especially when steel prices spiked at the same time.
For workers like Dawson, the political debates offer little comfort. She is currently competing for a new job in a very tough labor market. In 2022, Iowa cut its unemployment insurance benefits from 26 weeks down to just 16 weeks. To make ends meet, her husband took on a second job and now works 7 days a week. If she cannot find new employment soon, the 48-year-old mother of four says she will have to tap into her retirement savings just to survive.
