Nebraskans make things: Basketball hoops, farm equipment, artificial limbs and bullets are among the thousands of products that comprise the state's manufacturing sector.
Right now, manufacturers are in pain.
"The tariffs are hurting," said Ernie Goss, the Creighton University economist behind the monthly Mid-American Economy Report, which covers Nebraska and eight other states. "Why are they hurting? It's because the trading partners have retaliated."
For example, Goss said, China stopped buying goods coming from the U.S., "and that was telegraphed right back to the Nebraska economy."
Manufacturing accounts for about 12% of the state's total economic output and about 10% of Nebraska jobs.
According to Goss, Nebraska's manufacturing exports declined 12.6% in the first nine months of 2025 compared to the same period in 2024. He said it's costing companies more to import the materials, ingredients and components they need to make their products.
The December Mid-American Economy Report shows:
- Many Nebraska employers cut jobs or froze hiring for the first nine months of 2025.
- Nebraska's Business Conditions Index dropped to 40.5 from November's 50.3. The index measures new orders, production, delivery time, inventories and employment.
- 37.5% of manufacturing supply managers surveyed in Nebraska and eight other states opposed the 2025 tariff increases.
"Ultimately, the burden of tariffs will fall on consumers and businesses," Goss said.
That's the case for Bish Enterprises in Giltner, which makes specialized equipment for corn, hemp and sorghum farms around the country. Its machines weigh tons and require a variety of components to make.
Andrew Bish, chief operating officer of his family business, said the first year of the Trump administration's tariffs hit hard.
"It's been challenging for us on costs and then trying to figure out how we absorb some of that and what we have to pass on," Bish said.
Based in Giltner, Bish Enterprises buys U.S. steel, but relies on electronic and hydraulic components from Germany, China and other countries. Under Trump, every trading partner is subject to tariffs, with rates that vary depending on the country and the product. Bish said 2026 prices for some components of his company's products are up 75% to 80% over this time last year, so the company is evaluating how to keep costs down.
"One of the ways that we're actually trying to do that is through some of our engineering," he said. "This is not a question I would have even evaluated three years ago, but are we using too much steel in this product? Is there somewhere where we can take out weight? Not because we need a weight savings, but we need cost savings."
The Chocolate Season in Lincoln occupies a much smaller corner of Nebraska's manufacturing section. The family-owned business makes chocolate delicacies by hand: Picture bon bons, truffles and Midwestern fudge with a European flair. The Chocolate Season imports ingredients from a vendor in France, which is part of the European Union. The Trump tariff rate on imports from the EU is 15%.
"Tariffs have definitely increased our costs," said owner Erika Jensen. But, she said, with a limit to how much local customers are willing to pay for chocolate, passing costs along to customers is not an option.
"With chocolate, there is a very well-known glass ceiling. Even though we ship nationwide, we still have a lot of walk-in traffic. Lincoln, Nebraska, doesn't understand the cost of something so small."
Uncertain and haphazard
On the campaign trail, Donald Trump touted tariffs as vital to reviving the U.S. economy.
Specifically, he said tariffs on imports would incentivize U.S. manufacturers to buy materials and other inputs from U.S. sources. Once elected, Trump declared the U.S. trade deficit a "national emergency," and enacted a slew of tariffs that his administration claimed would increase the manufacturing workforce. Trump said foreign companies would bear the brunt of the costs.
Goss and his Creighton colleagues regularly survey supply managers around the region for the Mid-American Economy Report. He said the Trump administration's "haphazard "economic policies are taking a toll on Nebraska manufacturers.
"In other words, it's not just you've got tariffs, you've got the uncertainty of other tariffs being implemented," he said.
In addition to tariffs tied to economic policy over the course of 2025, the Trump administration also levied tariffs against countries with policies deemed contrary to U.S. interests. The U.S. imposed tariffs on Nicaragua over its human rights record and on Brazil for its treatment of former leader Jair Bolsonaro, a Trump ally. Countries considered exporters of fentanyl – like China and Mexico – face similarly punitive tariffs.
Goss said the uncertainty has the supply managers Creighton surveyed asking: "Will we have tariffs added on, or will we not have tariffs added on to the input?"
Staying sweet
Jensen said it's important to keep offering a range of prices online and in The Chocolate Season's Lincoln store, where customers can buy a treat for as little as $2. Chocolate bars and boxes of bon bons and other delicacies range from $10 to $80.
"We don't want you to come in with your kids and say, 'Sorry kids, we can't get anything here, let's go to McDonald's,'" she said.
Still, the tariffs are a pain point. The Chocolate Season is saving money by offering fewer sales and discounts, for example, and charging corporate customers with large orders a fee for paying by credit card. So far, Jensen is not compromising on imported ingredients.
"Because the minute you compromise on your brand, then 20 years of work is done because you tried to save 5%," Jensen said.
Bish called the tariffs a "mixed bag" – challenging now but potentially good for his company, Nebraska and the U.S. economy as a whole. He said the tariffs are forcing manufacturers to examine their practices and innovate.
"I don't think we quite understand how all of this is going to shake out," he said. "I think that things are trending favorably for the United States. I think we're in a pain point right now. But once we get past this pain point, I do think that, for at least manufacturing, that there is a brighter future than there was."
The Midwest Newsroom is an investigative and enterprise journalism collaboration that includes Iowa Public Radio, KCUR, Nebraska Public Media, St. Louis Public Radio and NPR.
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METHODOLOGY
For this article, Holly Edgell and Daniel Wheaton reviewed and analyzed data from The Mid-American Economy Reports produced by Creighton University. Edgell also studied materials and reports about the tariffs implemented by President Trump in 2025. She interviewed the lead Mid-American Economy Reports author and two owners of Nebraska manufacturing companies. She also contacted several other Nebraska manufacturers to invite representatives to be interviewed, but they either declined or did not respond.
REFERENCES
President Donald J. Trump Declares National Emergency to Increase our Competitive Edge, Protect our Sovereignty, and Strengthen our National and Economic Security (The White House | April 2, 2025)
Trump announces sweeping new tariffs to promote US manufacturing, risking inflation and trade wars (Associated Press | April 3, 2025)
Coolest Thing Made In Nebraska (NE Manufacturing Alliance | 2025)
Mid-American Economy Report (Creighton University | December 2025)
Presidential 2025 Tariff Actions: Timeline and Status (Congress.gov | Jan. 12, 2026)
Trump 2.0 Tariff Tracker (Trade Compliance Resource Hub | Jan. 27, 2026)
How Do Tariffs Function? (Tax Foundation| 2026)
TYPE OF ARTICLE
News – Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources.
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