Looking at recent policy moves aimed at boosting U.S. manufacturing, the numbers tell a troubling story. On the surface, these initiatives promise growth—but dig deeper and you'll find structural damage accumulating underneath.

The issue isn't simply that these strategies are failing to deliver results. The real concern? They're creating counterproductive headwinds that actively undermine the sector they're meant to help. Higher tariffs, supply chain disruptions, and increased input costs are rippling through American manufacturers in ways that look good in headlines but hurt on balance sheets.

Small and mid-sized manufacturers dependent on global supply chains are particularly squeezed. Larger industrial operations face margin compression. The irony is sharp: protectionist measures intended to shield domestic production are instead making it more expensive and less competitive globally.

This matters beyond just manufacturing reports. Asset markets are sensitive to industrial health signals. When production becomes less efficient and less profitable, capital allocation decisions shift—and risk assets feel the pressure.