How to tell if factories are navigating the tariff turns. I'm David Brancaccio in Los Angeles.

We're going to get a couple of updates on the manufacturing sector in the coming days.

Factories here often rely on inputs from over there, imports, which means even U.S. manufacturing can be on the receiving end of the trade war.

Marketplaces Justin Ho looked into how that sector has been reacting so far this year.

S.L. Munson & Company is a manufacturer in Columbia, South Carolina, that makes precision tools for other manufacturers.

Company President Lyman Munson says the company imports components from Europe, which means he has to pay a 10% tariff on those imports.

We're writing a check every week now on shipments coming in.

Munson says the company can't absorb that 10% tariff, but passing that cost along to his customers hasn't exactly been easy.

We're getting some pushback.

Some companies are offering to negotiate.

We have another customer who today said, we're not going to pay any tariffs.

Last month, manufacturers surveyed by the Institute for Supply Management said demand for

manufactured goods contracted.

And if you look at the comments,

86% of our panelists this past month have cited tariffs.

That's ISM's Susan Spence.

Manufacturers also said they're reducing production and employment.

People were saying we're not backfilling,

we're not replacing people, and a fair number of the

comments more around, we continue to do layoffs.

That said, we haven't seen any mass layoffs happen in the sector so far this year, says Scott Paul,

president of the Alliance for American Manufacturing.

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