The trade war is doing real damage to the American economy, and it’s showing up in manufacturing. Factories in a wide range of businesses, from clothing to machinery are suffering declines in exports.

The slowdown in manufacturing — often an early indicator of problems in the wider economy — showed up starkly in a dreadful report released on Tuesday. Factory activity contracted in September for the second straight month; by some measures it was the worst month in a decade. The bad news spooked investors and the Dow fell nearly 350 points, or 1.3%.

“As I predicted, Jay Powell and the Federal Reserve have allowed the Dollar to get so strong, especially relative to ALL other currencies, that our manufacturers are being negatively affected,” Trump tweeted minutes after the report was released.

“The tariffs have caused much confusion in the industry,” one electrical equipment, appliance and components manufacturer said.

A food, beverage and tobacco products executive said: “Chinese tariffs going up are hurting our business. Most of the materials are not made in the US and made only in China.”

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