General

Washington, D.C. – At a critical moment for manufacturing policy, the National Association of Manufacturers today announced the promotion of Charles Crain to managing vice president of policy, overseeing the NAM’s team of expert advocates driving policy outcomes that fuel growth, innovation and competitiveness for manufacturers across the U.S.

“Charles has been a driving force behind many of the NAM’s most important policy victories,” said NAM President and CEO Jay Timmons. “From leading the NAM’s policy and advocacy efforts to secure pro-growth, pro-manufacturing tax reforms, to protecting manufacturers from activist overreach and proxy advisory firms, Charles understands what’s at stake—and what it takes—to advance policies in a comprehensive manufacturing strategy that will empower the 13 million people who make things in America. He is the right leader at a pivotal time for our industry.”

Crain has played a central role in shaping the NAM’s agenda across tax, regulatory, corporate governance, technology and health care policy. Most recently, he served as vice president of domestic policy, where he led initiatives to modernize regulations, preserve the 2017 tax reforms, finalize and defend pro-manufacturing proxy rules, enhance oversight of pharmacy benefit managers and promote artificial intelligence innovation across manufacturing.

Since joining the NAM seven years ago, Crain has built a strong reputation as a trusted policy leader and effective advocate—starting with the development of a dedicated corporate governance portfolio that has since become a cornerstone of the NAM’s work.

In his new role reporting to NAM Executive Vice President Erin Streeter, Crain leads a powerhouse policy team that includes Vice President of Domestic Policy Chris Phalen, Vice President of International Policy Andrea Durkin and Chief Economist Victoria Bloom. He also joins a dynamic group of NAM senior external affairs leaders, including Managing Vice President of Government Relations Stef Webb, Managing Vice President of Brand Strategy Chrys Kefalas and Managing Vice President of Communications and Public Affairs Jamie Hennigan—forming a united front driving the NAM’s mission to advance policies that strengthen manufacturing in the U.S.

Before joining the NAM, Crain worked at the Biotechnology Innovation Organization, where he focused on financial services, tax and health care policy. He began his career on Capitol Hill, serving members of both the House Financial Services and Senate Finance Committees. A native of Birmingham, Alabama, Crain holds a B.A. in political science from Mercer University in Macon, Georgia.

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The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.93 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

On Wednesday, President Trump announced a 90-day pause of country-specific “reciprocal” tariffs above 10%, setting the “reciprocal” tariff rate at a flat 10%. However, he also announced an increase of additional “reciprocal” tariffs on Chinese imports, to 125%. The NAM’s trade team has the exact details for us.

Ninety days to negotiate: Trump’s executive order temporarily resets the additional country-specific ad valorem tariffs listed in Annex I of the April 2 executive order to a common 10% baseline, though previous exceptions still apply.

• The new rates went into effect on April 10, and the temporary reset applies until July 9, 2025, while the administration negotiates trade deals.

Higher tariffs on China: In response to China’s retaliation, the executive order increases tariffs on imports from China (and its administrative regions Hong Kong and Macau) into the U.S. from 84% to 125% as of April 10.

• The 125% rate is on top of the 20% additional rate on Chinese imports issued on Feb. 1, and in addition to any applicable Section 301 tariffs, Section 232 tariffs, MFN tariffs and AD/CVD tariffs.

De minimis: The April 2 EO laid out a new scheme for collecting tariffs on Chinese goods that would otherwise have been eligible for duty-free de minimis treatment, being valued at or below $800.The A pril 10 EO amends the previous order as follows:

•  From May 2, 2025, the tariff on postal items is increased from 90% to 120% of the package’s value or a flat fee per postal item.
• The flat fee is increased from $75 to $100.
• This flat fee was set to increase to $150 on June 1, 2025. This fee is now increased from $150 to $200.

 The U.S. stock market saw its worst day yesterday since the early days of the pandemic, following President Trump’s latest round of tariffs. These tariffs, when combined with other U.S. tariffs in 2025, make the U.S. average effective tariff rate 22.5%—the highest rate since 1909, according to The Budget Lab at Yale.

Manufacturers already had record-high concerns about trade uncertainties before this latest announcement, as the NAM’s Q1 Manufacturers’ Outlook Survey found.  Now, the uncertainty and instability have only increased, reminding observers the last time the U.S. imposed sweeping tariffs—with disastrous consequences.

Back then: The Tariff Act of 1930, also known as the Smoot-Hawley Act, was signed into law by President Herbert Hoover. Originally intended to protect the U.S. agricultural industry, it was later expanded to cover a broad swath of the U.S. economy, as CNBC recounts.

• The Smoot-Hawley Act imposed tariffs on approximately 25% of all imports to the U.S., according to Santa Clara University economic historian Kris James Mitchener.
• Some sounded the alarm at the time. Before signing the law in June 1930, President Hoover received “a petition signed by more than 1,000 economists asking him to veto the bill.”

A spiral: “Smoot-Hawley raised the average tariff on dutiable imports to 47% from 40%, [Dartmouth economist Doug] Irwin said. Depression-era price deflation ultimately helped push that average to almost 60% in 1932, he added.”

• Compare that to now: the latest tariff rates will be higher than the Smoot-Hawley levels, as reported by CNBC .

Manufacturers hurt: Following the passage of Smoot-Hawley, Argentina, Australia, Canada, Cuba, France, Italy, Mexico, Spain and Switzerland all responded with retaliatory tariffs on U.S. goods.  These tariffs often fell on manufactured products, weakening the sector amid the economic catastrophe of the Depression.

• For example, France, Spain, Italy and Switzerland increased tariffs on American cars, effectively closing off those markets to major American exports.
• In all, “U.S. exports to retaliating nations fell by about 28% to 32%, said Mitchener. Further, nations that protested Smoot-Hawley also reduced their U.S. imports by 15% to 23%.”

Long-lasting pain: The Dow Jones Industrial Average slid following the imposition of the tariffs, bottoming out in July 1932.

History lesson: Smoot-Hawley has long been condemned by American leaders of both parties as a mistake that severely damaged the American economy.

• Before taking office, Roosevelt denounced the Smoot-Hawley Act, saying it “compelled the world to build tariff fences so high that world trade is decreasing to vanishing point.” He would sign the Reciprocal Trade Agreements Act, which reduced tariffs with trading partners on a reciprocal basis, in 1934.
• When President Ronald Reagan spoke to the NAM’s Annual Meeting in 1986, he said, “I well remember the antitrade frenzy in the late twenties that produced the Smoot-Hawley tariffs, greasing the skids for our descent into the Great Depression and the most destructive war this world has ever seen. That’s one episode of history I’m determined we will never repeat.”

Modern realities:  President Trump has insisted that “we’re bringing wealth back to America” through these sweeping tariffs (CNBC). But manufacturers are urging caution, especially when future tax policy is so uncertain.

• One family-owned U.S. textile manufacturer, founded in 1887, warns that tariffs will dramatically raise the prices of its components, such as fabric, thread, yarn and fiber—none of which it can source in the U.S. “Tariffs would force us to curtail employment or close facilities if our customers would not accept higher prices,” the company said.
• Another manufacturer, an employee-owned firm, makes products and systems that control, monitor and protect utility and industrial electric power systems—which is critical for the coming buildout of new power generators and the electrical grid to meet the demand for AI datacenters. Tariffs will materially harm its ability to enable this essential economic growth.
• A third manufacturing company, a 100-year-old Wisconsin company specializing in custom-designed thermal solutions and large-scale HVAC cooling systems used in agriculture, mining, oil and gas and more, says that “tariffs on Canada and Mexico could cause us to take cost-cutting measures, including workforce reductions.”
• Last, a manufacturer that has made chemicals in the U.S. since the late 1800s reports that tariffs may set back its plans for expansion in North America, “which is already five times more expensive for us than in Asia and three times more expensive than in Europe.” The company will be less able to support crucial semiconductor manufacturing, and may even have to close low-margin business lines in the U.S.

The last word: “[M]anufacturers are scrambling to determine the exact implications for their operations [of the April 2 tariffs],” NAM President and CEO Jay Timmons said on Wednesday. “The stakes for manufacturers could not be higher. Many manufacturers in the United States already operate with thin margins. The high costs of new tariffs threaten investment, jobs, supply chains and, in turn, America’s ability to outcompete other nations and lead as the preeminent manufacturing superpower.”

Manufacturers are increasing their investments in digital assets, according to a recent survey from the Manufacturing Leadership Council, the NAM’s digital transformation division.
 
What’s going on: Due in large part to expectations of economic growth, manufacturers plan to either maintain or boost their spending on smart factory investments, they told the MLC in the recently published results of the Smart Factories and Digital Production Survey.

• Respondents also said they are optimistic about continued digitization and adoption, with 69% expecting moderate growth and no recession.
• While 28% would call their current operations “smart” or “somewhat smart,” 76% expect to be there in the next two years.
• Awareness of AI is growing by leaps and bounds among manufacturers; some 34% said they see AI as very significant. (Last year, just 10% said the same.)   

Key points: The survey’s top takeaways include the following:

• Digital transformation is changing the game: Most manufacturers—60%—see digital transformation as something that is redefining the industry.
• More manufacturers are going digital: Some 75% of manufacturers say they are at “midlevel” digital maturity, up significantly from 2024 and 2023.
• AI’s role is inevitable: Fully 80% of manufacturers fully or partially agree self-managing and self-learning facilities powered by AI and machine learning are coming.

Washington, D.C. – Today, the National Association of Manufacturers joined the Small Business Administration’s Made in America Manufacturing Initiative for a tour stop at Vantage Plastics in Standish, Michigan, as part of the Made in America Roadshow. During the event, Vice President Vance and Administrator Loeffler heard directly from manufacturers about the policies that are driving manufacturing growth in the United States.

“Manufacturing is the backbone of America’s strength, prosperity and pride. President Trump and Vice President Vance understand what manufacturing means to America—not just in economic terms, but also in human terms,” said NAM President and CEO Jay Timmons. “Vice President Vance has lived the story of American industry, and he’s given voice to people from hometowns like mine in Chillicothe and Circleville, Ohio, and in Standish, Michigan, who know how important growing manufacturing in the United States is to our lives, communities and country. That’s why his perspective and leadership are so valuable as manufacturers work to advance a comprehensive manufacturing strategy—one that secures our position as a manufacturing superpower, supports creating more jobs and ensures America is the best place in the world to build and create.

“Manufacturers are ready to lead, to invest and to grow—building a stronger, more prosperous nation. But we can only reach our full potential with the type of leadership that will make the 2017 tax reforms that were rocket fuel for the manufacturing industry permanent, rebalance the regulatory framework, expedite permitting reform to unleash American energy, grow the manufacturing workforce and implement sensible trade policies. That’s how we make America strong, prosperous and proud. That’s how we will Make America Great for Manufacturing Again.”

“We are honored to welcome Vice President Vance to Vantage Plastics and grateful for his leadership in supporting American manufacturing,” said Vantage Plastics President Paul Aultman. “When companies like ours can invest and grow, it strengthens our community and creates opportunity. Imagine how much stronger this country would be if every manufacturer—large and small, in cities and towns across America—had the tools to build, expand and succeed. Manufacturing is the backbone of America, and on shop floors like ours, we’re not just making products—we’re making the future. With smart policies that support investment, job creation and innovation, manufacturers can continue leading America’s economic resurgence.

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The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.93 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

Washington, D.C. – The National Association of Manufacturers, the strongest voice for American industry, today announced that Johnson & Johnson Executive Vice President and Chief Technical Operations & Risk Officer Kathy Wengel, as well as Rockwell Automation Chairman and CEO Blake Moret, will once again serve as board chair and vice chair, respectively.

“Manufacturers are the backbone of America’s economy, and under Kathy and Blake’s leadership, we are poised to continue delivering more for the people who make America,” said NAM President and CEO Jay Timmons. “As chair, Kathy has already set new records in growing the membership of the NAM—ensuring manufacturers can create more well-paying jobs in the United States, cut through red tape and power our economy. As vice chair, Blake has been a consistent champion for strengthening our workforce, driving innovation and making sure manufacturers have the tools to compete and win.

“This year is a historic opportunity for manufacturing. With leadership in Washington committed to the importance of growing manufacturing in the United States, we are doubling down on the fight to stop devasting tax hikes, roll back the regulatory overreach of the past, unleash American energy dominance and make the U.S. more competitive than ever before,” said Timmons.

“I am honored to serve as NAM Board chair for another term,” said Wengel. “Our members are ready to lead knowing manufacturing’s vital contribution to the economy. The NAM continues to achieve unprecedented results for manufacturers—from tax reform resulting in increased investment, to regulatory certainty, to upskilling to strengthen the capabilities and resilience of the manufacturing workforce. Now, we have the opportunity to create new records for manufacturing jobs, increased wages and new investments in the United States.”

“We look forward to joining forces with the administration and Congress to implement solutions that will lift up everyone in the United States,” said Moret. “We have a clear list of manufacturing priorities across policy, workforce development, technology and supply chain that will make American manufacturing and American manufacturing workers the most successful in the world.”

The NAM also announced Click Bond CEO Karl Hutter will be elevated to chair of the NAM’s Small and Medium Manufacturers Group. Husco President and CEO Austin Ramirez will be vice chair.

“Eighty-five percent of NAM members are small and medium-sized manufacturers, so we are the nation’s largest voice for the pride, prosperity and strength of the small businesses that build America,” said Timmons. “Karl and Austin are leaders of our industry who are steering their companies and American industry into the future. They will continue to help rally SMMs to share their stories with more of America and to come together with the NAM to learn from each other, support one another and make our country stronger.”

“The policies we put in place today will decide whether SMMs can thrive in the United States for generations to come,” said Hutter. “It is a privilege to get the opportunity to work alongside the NAM’s leadership to educate elected leaders on critical issues that matter in supporting our communities, creating great careers and protecting America’s national security.”

“I am honored to serve as vice chair of the NAM’s SMM Group,” said Ramirez. “The stakes are high for manufacturers in America—particularly SMMs. I look forward to collaborating to champion manufacturing in the U.S. as we advocate for SMM policy priorities.”

Founded in 1895, the NAM, guided by its Board of Directors, is the largest industrial trade association in the United States. The NAM is the nation’s most influential manufacturing advocate, and its membership includes some of the world’s most iconic brands and many of the small manufacturers that power the U.S. economy.

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The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.93 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

White House adviser David Sacks has his work cut out for him (POLITICO Pro’s ENERGYWIRE, subscription).

What’s going on: “Today, as the president’s AI and crypto czar, Sacks is tasked with opening doors for Silicon Valley and global financiers to expand AI infrastructure—and fast. But that presents Sacks with a wholly unfamiliar challenge: ensuring the tech industry gets the electricity it needs for a massive buildout of data centers to house the computing power needed for AI technology.”

• Technology giants including Amazon have pledged to spend billions on AI infrastructure to construct those data centers. In January, Trump and two tech firm leaders announced the $500 billion “Stargate” project to do just that.

Interconnection, cost challenges: While the president “has promised to use emergency declarations to build more power plants” to run these data centers, “tech companies that want to erect their own power plants will wrestle with the limited supply of ready transformers and the real-world challenges of putting up a large gas-fired power station or tying into a nuclear reactor.”

• That’s because regional electric grids and utility companies are already straining to keep up with Americans’ growing power appetite, and the prospect of dramatically increasing capacity is leading to concerns about cost and reliability.

What’s next: “Under Trump’s executive order, Sacks will work alongside policy staffers on science and technology, national security, economic policy and other relevant departments to craft an AI action plan. … Some direction could come from Trump’s National Energy Council, set to be led by Interior Secretary Doug Burgum. That council is likely to consider steps to streamline permitting and to unleash more fossil fuel production and other energy sources like nuclear and geothermal.”

What we’re doing: The NAM has long urged Congress to take steps to facilitate the construction of data centers, including:

• Reforming the U.S. permitting system;
• Ensuring energy affordability;
• Expediting licensing;
• Addressing shortages of components;
• Mitigating cybersecurity risks; and
• Bolstering workforce development efforts.

Washington, D.C. – The National Association of Manufacturers today announced the addition of former Transportation Security Administration Assistant Administrator for Strategic Communications and Public Affairs Alexa Lopez as the NAM’s vice president of communications and public affairs, a newly created position designed to build on the NAM’s strategic outreach and advocacy efforts.

“Alexa knows how to navigate complex challenges, craft compelling narratives and drive real impact,” said NAM President and CEO Jay Timmons. “She has built a career on delivering results, and manufacturers will benefit from her ability to elevate our industry’s voice at a time when manufacturers’ influence on the future has never been more important. She will be a strong champion for the policies that power innovation, create jobs and keep manufacturing in America strong.”

As NAM vice president of communications and public affairs, Lopez will lead efforts to amplify the voice of manufacturers and advocate for policies that advance the competitiveness of manufacturers in the United States. She will report to NAM Managing Vice President of Communications and Public Affairs Jamie Hennigan.

Previously, Lopez led all strategic communications and public affairs efforts at TSA, serving as principal communications adviser to the TSA administrator on all external and internal communications. She also served in key public affairs roles at the Federal Emergency Management Agency, the American Society of Civil Engineers, Ogilvy Public Relations and the City of Bloomington, Indiana. She holds a Master of Public Affairs and Master of Arts in Arts Administration from the Indiana University O’Neill School of Public and Environmental Affairs. Lopez was proudly born and raised in Dayton, Ohio.

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The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.93 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

The recission of every harmful regulation will look different, as will any subsequent legal challenges. Here is one potential scenario for a crucial regulation that the NAM has urged President Trump to undo: the Biden EPA’s overly strict air quality standards.

The background: In February 2024, the EPA lowered the standard for particulate matter, or PM2.5, in its National Ambient Air Quality Standards rule by 25%, down from 12 micrograms per cubic meter of air to nine.

• This reduction put the level of acceptable particulates at almost the equivalent of the level found in nature, as NAM Vice President of Domestic Policy Chris Phalen pointed out.
• An NAM-commissioned analysis by Oxford Economics found that a standard at this level could reduce GDP by nearly $200 billion and cost as many as 1 million jobs through 2031.
• Furthermore, the new rule put huge swaths of the country in “nonattainment,” meaning that they would not meet ambient air quality standards and would have to cease operating.

What could happen: The rule has not taken effect due to the current lack of compliance requirements. However, it will take the Trump administration some time to achieve a recission, which will have to begin with a Notice of Proposed Rulemaking to solicit public comments.

What the EPA should do: The EPA decided against lowering the air quality standard in 2020, but the Biden administration pushed through this change anyway, without the scientific support required by the Clean Air Act.

• The NAM is asking the Trump administration to reverse course by instituting an NPRM and doing the appropriate research and consideration of public comment to develop a more reasonable standard.

NAM in action: The NAM is fighting the regulation in court, alongside a number of other business associations.

President Trump will soon “ramp up” workplace immigration status checks, according to incoming border czar Tom Homan (NBC News).
 
What’s going on: The incoming administration intends to increase U.S. Immigration and Customs Enforcement raids of workplaces shortly after Trump’s inauguration, Homan told NBC News late last week.

• “We’re going to do it in a smart way,” Homan said. “We’re still working on how exactly we want to roll this out, but [worksite] operations have to come back again because it’s the No. 1 place we find victims of forced labor being run by many cartels.”

Funds needed: ICE has a $230 million budget shortfall, which the Trump administration plans to address by requesting more funding from Congress.
 
Other ideas: The new administration is considering additional actions, Homan said, including:

• Tripling the number of beds in detention facilities, from 34,000 to at least 100,000;
• Creating a hotline people can call to report undocumented immigrants they believe have committed crimes;
• Holding weekly press conferences with updates on deportations; and
• Potentially expanding ICE’s 287(g) program, which allows the agency to partner with local law enforcement.

Title 42: Whether the administration will reinstate Title 42—the COVID-19-era immigration restriction measure that made deportations on public health grounds easier—remains to be seen, according to Homan.

• “I don’t know whether [Trump] has made a decision, and I would not get ahead of him,” Homan told NBC News. “But I think there could be a case made for it.”

National security: Stricter immigration policies will act as a deterrent to those considering coming to the U.S. illegally, Homan continued.

• “I think the American people have spoken,” he said. “This is the No. 1 issue. They went to the voting booth. I think Congress is paying attention. They’ll give us the money to do this job. It’s not so much about illegal immigration. It’s about national security.”

Our take: “Manufacturers support a comprehensive approach to our country’s immigration challenges, both to ensure that they have the workforce they need to support economic growth and to enforce our laws and secure our border,” said NAM Senior Director of Technology Policy Franck Journoud.

• “Securing the border is a crucial step toward ensuring that America’s immigration laws support safe and prosperous communities across the country.”