President Trump said his sweeping tariff regime would revive domestic manufacturing. So far, the sector is sputtering.

The WSJ’s Chao Deng and John Keilman write that economic activity tied to manufacturing has shrunk for most of Trump’s second term and that some corporate pledges to beef up U.S. factories may not come to fruition.

Even though effective average tariff rates are at their highest levels since the 1930s, some economists say the levies aren’t high enough to bring companies back to the U.S. The unpredictability of Trump’s trade wars is also making it hard for companies to decide on big capital commitments.

Other factors are hurting the sector, too. Whirlpool says its U.S. plants have made fewer products this year as Asian competitors accelerated shipments to the U.S. to get ahead of tariffs. Motorcycle maker Harley-Davidson and off-road vehicle manufacturer Polaris cited consumer uncertainty as a factor behind decisions to tamp down U.S. factory operations.

The White House touts nearly $2 trillion of manufacturing-related projects announced since the start of the year. Nearly 80 projects are included in that tally including factories and data centers — many of which could take years to materialize.

• Apple says it will build cover glass for every iPhone and Apple Watch in Kentucky. (WDRB)

U.S. trading partners are lobbying the White House for exemptions to sweeping new tariffs that went into force this week, as countries seek to muffle the impact on their economies of President Trump’s push to reorder global trade.

The WSJ’s Jason Douglas, Kim Mackrael and Gavin Bade report that the diplomatic efforts show months of trade talks are far from over despite the run of agreements trumpeted by the White House in the past month.

The European Union, Japan and South Korea are among those that have agreed to pacts with Trump, while behind the scenes their negotiators continue to argue for further relief for prized export sectors. Dozens of exemptions and carve-outs have already been allowed for products including Brazilian orange juice and Chilean copper.

With the president showing willingness to adjust tariffs spontaneously in pursuit of a variety of political goals, uncertainty over access to the U.S.’s vast domestic market is becoming a key feature of the emerging economic order.

• Toyota Motor expects a $9.5 billion hit from tariffs. (WSJ)
• Sony Group raised its annual profit forecast to reflect a less severe impact from tariffs than previously feared. (WSJ)
• Crocs expects a $40 million hit from tariffs in the second half of 2025. (WSJ)

China’s exports grew at a faster clip in July, showing tariffs so far haven’t curtailed the country's export machine. (WSJ)

Companies that export chips to the U.S. from the European Union will face a 15% tariff ceiling. (WSJ)

Germany’s goods exports to the U.S. slid further in June. (WSJ)

The Bank of England lowered its key interest rate for the fifth time in a year. (WSJ)

Chinese carrier Cosco has completed what it calls the world’s first green ammonia bunkering operation. (Lloyd’s List)

Cummins is delaying the launch of its next-generation engine citing uncertainty around federal tailpipe regulations. (Transport Topics)

The West Coast's Harbor Trucking Association tapped Robert Loya as its new chief executive. (Commercial Carrier Journal)

BNSF Railway and Union Pacific Railroad are adding new intermodal services in efforts to win freight from trucking. (Journal of Commerce)

Mark R. Long is editor of WSJ Logistics Report. Reach him at mark.long@wsj.com. Follow the WSJ Logistics Report team on LinkedIn: Mark R. Long, Liz Young and Paul Berger.