The Lehigh Valley’s Manufacturing Crossroads: Tariffs, Layoffs, and Lingering Hope

The Lehigh Valley of Pennsylvania, once a powerhouse of American industry, stands as a poignant reminder of both the glory and the struggles of manufacturing in the United States. This region, defined by the robust presence of companies like Mack Trucks and, most notably, Bethlehem Steel, experienced a golden age where industrial might translated into thriving communities and a strong middle class. Bethlehem Steel, at its peak in the 1950s, provided employment for over 30,000 individuals, a testament to the sheer scale of manufacturing operations.

However, the tides began to turn in the 1970s, marking the onset of a prolonged decline. By the dawn of the 21st century, the manufacturing landscape of the Lehigh Valley had been drastically altered, with industries collapsing and leaving behind a trail of economic hardship. The bankruptcy of Bethlehem Steel in 2001 served as a stark symbol of this de-industrialization, its former site now occupied by a casino, a bittersweet reminder of a bygone era. The Lehigh Valley became emblematic of the difficulties faced by communities grappling with the loss of their industrial base, even inspiring artistic expressions like a Billy Joel song that captured the region’s plight.

In recent years, President Donald Trump has positioned his trade war as a strategy to revitalize manufacturing and bring jobs back to areas like the Lehigh Valley. Yet, the reality on the ground presents a more complex picture. The implementation of tariffs, intended to protect American industries, appears to be having unintended consequences. Mack Trucks, a company deeply rooted in the Lehigh Valley, announced layoffs affecting approximately 10 percent of its unionized workforce at its local plant. The company attributed these layoffs directly to the economic uncertainty created by tariffs, illustrating the potential for such policies to backfire.

Dan Hand, a Mack Trucks employee and UAW Local 677 District 1 Committeeperson, expressed his surprise and concern over the layoffs. He highlighted the anxieties of workers, particularly those recently hired, who now face the prospect of unemployment. This situation prompted a reporter to travel from Philadelphia to the Lehigh Valley to gain firsthand insights into the feelings and perspectives of the affected workers.

The initial expectation was to encounter widespread anger towards the tariffs and the economic situation. However, the reality proved to be far more nuanced. The workers held a range of opinions and feelings, reflecting the complexities of the issue.

A significant factor contributing to the Lehigh Valley workers’ complicated perspective is the decision by Volvo, Mack Trucks’ parent company, to construct a new truck plant in Mexico. This announcement, made last summer, sparked fears among the union members that their jobs could eventually be relocated south of the border, mirroring a broader trend of manufacturing jobs leaving the United States. Although the company asserted that the new plant would supplement, not replace, the American workforce, the union remained apprehensive. UAW 577 issued a press release in March, condemning Mack’s decision and endorsing tariffs as a tool to combat the potential job losses.

Despite the looming layoffs, the Lehigh Valley workforce at Mack Trucks remains divided on the efficacy of Trump’s tariff policy. Some view the tariffs as a necessary measure to protect American jobs, while others question their effectiveness and worry about the immediate economic consequences. Dan Hand, who voted for Trump in 2016 but later became disillusioned due to his treatment of organized labor, expressed skepticism, suggesting that there seemed to be no sound strategy driving the policy.

John Taniser, a 27-year veteran of Mack’s production line, offered a contrasting perspective. He voted for Trump in 2024 and remains optimistic about the president’s vision, believing that short-term pain is a worthwhile price to pay for long-term economic stability. Taniser emphasized the need for a path forward that allows the Lehigh Valley to thrive, not merely survive. He expressed frustration with the current economic situation, stating that it offers no prospect for progress.

Most economists agree that the manufacturing sector is unlikely to return to its mid-20th century prominence in the American economy. As countries develop, there’s a natural shift towards service industry jobs. This trend has been evident throughout the United States and is reflected in the Lehigh Valley as well, where hospitals and Amazon warehouses have become the largest employers.

Moreover, advancements in manufacturing technology mean that even if companies invest in domestic production, the creation of new jobs will be limited. Modern factories require fewer human workers due to automation and increased efficiency. This reality is difficult for communities that have historically relied on manufacturing and have experienced the devastating effects of its decline.

Despite the economic realities and expert opinions, many in the Lehigh Valley cling to the hope that tariffs can somehow reverse the decline of manufacturing and restore the region to its former glory. Taniser passionately stated that the “great jobs” of the past built the Lehigh Valley, providing workers with the means to buy homes and support local businesses. He expressed a desire to revive this economic engine and bring back the prosperity that once defined the region. This longing for a return to the past underscores the enduring connection between the Lehigh Valley’s identity and its manufacturing heritage. The situation embodies the complicated intersection of economic policy, global trade, and the hopes and fears of American workers.