Trump's Plan Will Rescue Texas Manufacturing From Biden's Mess

The Dallas Fed Texas Manufacturing Index just cratered to -35.8 in April 2025, a gut-wrenching plunge from -16.3 in March. This isn’t just a number; it’s a siren blaring that America’s industrial heart is in trouble. Texas, a powerhouse of U.S. manufacturing, is flashing warning signs that demand attention from President Trump’s administration. The steepest drop since the pandemic’s darkest days points to a confluence of pressures: soaring raw material costs, dwindling new orders, and a business outlook as grim as a West Texas dust storm.

For hardworking Americans, this isn’t abstract data. It’s about jobs, livelihoods, and the ability to put food on the table. The index’s collapse reflects a broader economic malaise that threatens the very industries that built this nation. Manufacturers are slashing hours, freezing hiring, and watching shipments evaporate. The question isn’t whether we’re in trouble—it’s how fast Trump’s team can steer us out of it.

What’s driving this freefall? Look no further than the lingering effects of Biden-era policies that prioritized globalist agendas over American workers. Coupled with the Federal Reserve’s sluggish response to economic realities, the stage was set for a manufacturing meltdown. But the blame doesn’t rest solely on the past. Uncertainty over tariffs and trade, compounded by a Fed that’s still playing catch-up, is choking the life out of our industrial base.

President Trump, now in his second term, has a mandate to reverse this decline. His first term showed what’s possible: tax cuts that fueled growth, deregulation that unleashed innovation, and a trade policy that put America first. The Texas manufacturing crisis is a test of whether his administration can deliver again—or if the ghosts of Biden’s economic missteps will haunt us for years.

Let’s be clear: the roots of this manufacturing slump trace back to the Biden administration’s reckless policies. Their obsession with green energy mandates and bloated infrastructure bills like the Inflation Reduction Act funneled billions into unproven technologies while neglecting core industries like steel, oil, and machinery. The result? Skyrocketing input costs and supply chain chaos that left manufacturers scrambling. The Dallas Fed’s raw materials price index hit its highest since mid-2022, a direct consequence of these misguided priorities.

Advocates for Biden’s approach, like Senators Elizabeth Warren and Bernie Sanders, argue that their investments were about ‘sustainability’ and ‘inclusivity.’ But their vision ignored the reality on the ground: American factories can’t compete when raw materials cost a fortune and regulations strangle innovation. Their push for global trade agreements and clean energy subsidies weakened our industrial base, leaving us dependent on foreign suppliers for critical components. The Texas index’s nosedive is the bill coming due.

Historical precedent backs this up. The Reagan era proved that deregulation and low taxes can supercharge manufacturing. Trump’s first term echoed that success, with corporate tax cuts spurring investment and job growth. Yet Biden’s team reversed course, piling on red tape and chasing utopian climate goals that priced American goods out of the market. The Dallas Fed’s data shows the damage: new orders plummeted 20 points, and capacity utilization turned negative. This isn’t progress—it’s regression.

The Federal Reserve isn’t blameless either. High interest rates through 2023 and 2024 crushed manufacturers by jacking up borrowing costs and curbing demand. Even with recent rate cuts, the Fed’s lag in policy transmission means relief is months away. Manufacturers, focused on survival, are cutting inventories and delaying investments. The Fed’s cautious approach might stabilize inflation, but it’s kneecapping the very industries we need to thrive.

President Trump’s administration has a clear playbook to turn this around. First, slash the corporate tax rate for manufacturers to 15%, as proposed by his economic team. This isn’t just a tax break; it’s a lifeline for factories struggling to compete with cheap foreign labor. Pair that with expanded R&D tax credits and special economic zones with minimal regulations, and you’ve got a recipe for bringing manufacturing back to American soil.

Second, double down on tariffs to protect our industries from predatory foreign competitors, especially China. The Dallas Fed’s data shows tariff-driven price hikes are a challenge, but the solution isn’t to retreat—it’s to lean in. Strategic tariffs force companies to reshore production, creating jobs and securing supply chains. Critics whine about higher consumer prices, but the tradeoff is worth it. Americans will pay a bit more for goods made by their neighbors, not faceless factories overseas.

Finally, tackle the labor crisis head-on. With a projected shortfall of 1.9 million manufacturing workers by 2033, we need bold action. Trump’s team should partner with trade schools and community colleges to train the next generation of welders, machinists, and engineers. Automation and AI can help, but nothing replaces skilled American workers. The average manufacturing job pays over $102,000 a year—let’s make those careers aspirational again.

Skeptics, including some within Trump’s own party, warn that protectionism and government incentives could backfire, creating inefficiencies or sparking trade wars. They’re not entirely wrong; history shows that heavy-handed intervention can distort markets. But the alternative—doing nothing while our industrial base erodes—is unthinkable. The COVID-19 pandemic exposed the dangers of relying on global supply chains. Texas manufacturers, and the nation, can’t afford another wakeup call.

The Dallas Fed Texas Manufacturing Index’s collapse is more than a regional problem—it’s a national crisis. It signals that our economic foundation is cracking under the weight of bad policies, timid monetary moves, and global uncertainty. President Trump’s administration has the tools and the will to fix this, but time is short. Every day of inaction risks more jobs, more factories, and more of the American dream slipping away.

This is about more than numbers on a chart. It’s about the welder in Houston, the machinist in Dallas, and the small-town factory that keeps a community alive. Trump’s vision of an America-first economy, built on manufacturing might, is within reach. By cutting taxes, slashing regulations, and protecting our industries, we can rebuild what Biden’s policies tore down. The Texas manufacturing crisis is a challenge, but it’s also an opportunity to prove that America’s best days are still ahead.