President Trump announced a proposal requiring companies to establish manufacturing operations within the United States or face significant financial penalties. The plan offers a timeline of up to two years for businesses to build facilities domestically. Should companies fail to meet this requirement, they would be subject to tariffs of up to 250%.

The announcement was delivered through a video statement, emphasizing a shift in trade policy aimed at boosting domestic production. The proposed tariff rate represents a substantial increase over current trade barriers, designed to incentivize corporate investment in US-based infrastructure.

Key Proposal Details

The core of the proposal centers on a conditional timeline and a punitive tariff structure for non-compliance.

This policy direction signals a potential restructuring of supply chain economics for multinational corporations operating in or exporting to the US market.

Employers in the United States are entering the second half of 2026 with a positive hiring outlook, though a significant portion continue to struggle to fill open roles. A survey by Express Employment Professionals-Harris Poll found that 84% of US hiring managers feel positive about their company's hiring outlook for the remainder of 2026, nearly unchanged from 85% in the fall of 2025. However, 44% of hiring managers say their company currently has open positions they cannot fill, up from 36% in the fall of 2025 and the highest share since Spring 2023.

The positivity is translating into hiring plans, though at a slightly slower pace than the previous year. The survey found that 60% of companies plan to increase the number of employees, down from 66% in the fall of 2025. Nearly 1 in 5, or 19%, say their company plans to make significant increases. Among those planning to increase headcount, the primary drivers are operational needs rather than optimism alone.

Drivers of Hiring and Reduction

For companies planning to expand their workforce, the survey identified the top reasons for hiring. Increased volumes of work were cited by 53% of respondents, while 49% are filling newly created positions. Additionally, 42% are replacing positions open due to employee turnover, and 37% are staffing expansion into other categories or markets.

Not all companies are adding staff. The data shows that 32% of hiring managers plan to maintain current staffing levels, while 7% plan to reduce their employee count. Among those reducing staff, cost and efficiency pressures are the leading factors.

Anticipated Hiring Challenges

Even companies optimistic about hiring expect to face complications over the remainder of the year. Nine in 10 hiring managers anticipate challenges in their hiring processes. The top expected challenges include navigating AI intelligence in recruitment and hiring processes, cited by 49%, and finding qualified candidates, cited by 42%. Furthermore, 32% cited difficulty planning labor needs due to recession or economic downturn concerns and changes in government policies.

Bob Funk Jr., CEO, president and chairman of Express Employment International, commented on the findings. "The mismatch between open jobs and available talent is not something businesses can afford to ignore," he said. "Job seekers have an opportunity to build skills in areas where employers need help most, and companies have an opportunity to invest in people who show potential."

The Job Insights survey was conducted online within the United States by The Harris Poll on behalf of Express Employment Professionals from May 13 to June 1, 2026, among 1,006 US hiring decision-makers.