Policy and Legal

President Trump Sends More Country Tariff Letters, Signals Section 232 Tariffs


President Trump signed more individual country letters this week, following his extension to Aug. 1 of the pause on “reciprocal” tariffs over 10%.

A quick recap: The president had delayed tariffs on individual countries, which had been announced on April 2, until July 9. He imposed a flat 10% tariff until then on all countries except Mexico, Canada and China.

  • This week, he extended that pause until Aug. 1. If new trade deals are not reached by then, individual country rates will go into effect.

More letters: The president had issued letters on July 7, assigning tariff rates to imports from more than a dozen countries and followed those up with more letters to other countries on July 9. The second round included Libya, Iraq, Algeria, Moldova, Brunei and the Philippines.

  • The letters also warned that if countries impose retaliatory tariffs, U.S. levies will rise as well. The increases cited in the letters range from 25% to 50%.
  • You can find a full chart here of the countries that have received letters, as well as those that were included in the April 2 order but have not yet received letters.

Targeting Brazil: The U.S. ran a trade surplus with Brazil in 2024, which means it was not included in President Trump’s imposition of tariffs in April.

  • Decrying the legal proceedings against former Brazilian president Jair Bolsonaro along with social media censorship policies (as well as trade barriers), President Trump announced that the U.S. is imposing a 50% additional tariff on Brazil, which will rise another 50% should Brazil retaliate.
  • President Trump also ordered the United States Trade Representative to open a Section 301 investigation into Brazil’s “attacks on the digital trade activities of American companies” and other unfair trade practices, which could result in other tariffs.

Section 232: In a Truth Social post, the president mentioned plans for Section 232 tariffs on copper.

  • The administration will have to issue a proclamation and provide documents defining the scope of the tariffs, including which products are subject to them, so details are yet to come.

The NAM is monitoring the administration’s actions on Section 232 closely and has been detailing manufacturers’ interests and concerns for the administration. You can read about its advocacy here.

Policy and Legal

Rep. Carter, Bipartisan Group Introduce PBM Reform


The NAM has long called for the comprehensive reform of pharmacy benefit managers, and on Thursday, Rep. Buddy Carter (R-GA) delivered for manufacturers.

What’s going on: Rep. Carter, along with a group of 11 bipartisan members of Congress, introduced the PBM Reform Act to curtail abusive practices by PBMs, which are underregulated middlemen that drive up health care costs for manufacturers and manufacturing workers.

  • The NAM has been pressing hard for PBM reform for years.

What it would do: The PBM Reform Act consists of crucial PBM reforms that the NAM has long supported, including:

  • Increasing transparency of PBM practices in employer-sponsored health insurance and Medicaid;
  • Delinking PBMs’ compensation from prescription drug list prices in Medicare; and
  • Banning spread pricing in Medicaid.

Why it’s important: “PBMs are middlemen that drive up health care costs and offer little value to the health care system,” said NAM Managing Vice President of Policy Charles Crain.

  • “Small and medium-sized manufacturers are facing rising health care costs—and PBM reform will empower these businesses to offer competitive benefits to manufacturing workers. Manufacturers commend Rep. Carter for introducing legislation to enact much-needed PBM reforms, and we encourage Congress to take steps to curtail PBMs’ abusive practices.”
Policy and Legal

Tax Bill Victory Draws Praise from Small Manufacturer


One week after the reconciliation bill was signed into law, making crucial pro-growth tax policies permanent, manufacturers are still celebrating.

Winton Machine Company CEO and Co-Owner and NAM Board Member Lisa Winton congratulated congressional leaders and the NAM on the passage of the bill, saying, “I would be remiss not to acknowledge the unwavering leadership and dedication shown over the past two years in driving the renewal of the tax package,” in a LinkedIn post.

The congressional effort: Winton thanked policymakers for their concerted effort in speaking to small manufacturers about the impact of these tax policies.

  • “From holding hearings across the country to meeting directly with small business owners and CPAs representing thousands of clients, the commitment to understanding the real-world impact of not renewing the [Tax Cuts and Jobs Act] has been clear and consistent.”
  • “Thank you … [House Ways and Means Committee] Chairman Smith for ensuring that the voices of Main Street were not only heard—but reflected in the policy discussions that shape our economy. Thank you Speaker [Mike] Johnson for working across the aisle and for taking the time to listen when I shared what the impact would be to not only my company but the entire industry.”
  • “Thank you to President Trump, Vice President Vance, Majority Leader Scalise, Majority Whip Emmer, Conference Chair McClain and all the members of Congress who took the time to listen and take action.”

The NAM’s effort: Winton also gave a shoutout to the NAM, thanking President and CEO Jay Timmons, Executive Vice President Erin Streeter, Managing Vice President of Policy Charles Crain and the whole NAM staff for working “tirelessly on behalf of manufacturers of all sizes to make this happen.”

Manufacturers’ efforts: Winton also recognized the enormous advocacy efforts undertaken by manufacturing leaders themselves.

  • “Thank you to all the manufacturers who took the time and money to get on a plane or invite members of Congress to their facilities so that they could be educated on what the future of American manufacturing looks like.”
  • Winton herself played a key part in these efforts, testifying before an April 2023 field hearing of the House Ways and Means Committee on the importance of pro-growth tax policy.

The last word: “I am committed as a manufacturer to continue to help drive innovation and invest in the future manufacturing workforce here in the USA,” Winton affirmed.

In case you missed it, catch the NAM’s thank-you video celebrating the champions who made the One Big, Beautiful Manufacturing Law happen, featuring manufacturers of all sizes. And check out the NAM’s #ManufacturingMinute video on Instagram highlighting its advocacy efforts that helped get the bill across the finish line.

Policy and Legal

Defense Department Becomes Largest Shareholder in Rare Earth Miner


The Defense Department will buy $400 million of MP Materials’ preferred stock, becoming its largest shareholder, the company announced today (CNBC). MP Materials owns the only rare earth mine operating in the U.S. today at Mountain Pass, California.

The background: “Rare earths are used in magnets that are key components in a range of military weapons systems including the F-35 warplane, drones and submarines, according to the Defense Department.”

  • The U.S. imports almost all its rare earths, with China supplying about 70% of imports in 2023, according to the U.S. Geological Survey.
  • Rare earth imports from China have become a point of dispute in U.S.–China trade relations.

Looking ahead: “MP Materials will build a second magnet manufacturing facility in the U.S. to serve defense and commercial customers with support from the Pentagon. The facility, whose location wasn’t disclosed, is expected to start commissioning in 2028 and will bring MP Materials rare earth magnet manufacturing capacity to 10,000 annual metric tons.”

  • The Pentagon will buy all magnets produced by the new facility for a period of 10 years after it is built.

What they’re saying: “We understand that this partnership is ultimately on behalf of the taxpayers and our national security, and with that comes a great responsibility to get this done right,” MP Materials CEO James Litinsky told investors in a call this morning.

  • “Securing America’s supply of rare earth materials and magnets is essential to our economic and national security.”

The NAM says: “The NAM has long led the charge for diversifying sources of critical minerals both to strengthen manufacturing supply chains and to safeguard its national security,” NAM Director of Energy and Resources Policy Michael Davin said.

  • “Investments like this one are an innovative way for the U.S. government to make good on its promise to manufacturers and the American people.”
Policy and Legal

Port Operators Ask for Delay of Tariffs on Port Equipment


Operators of U.S. ports say that the Trump administration’s proposed tariffs on port equipment would add tens of millions of dollars in costs to much-needed upgrades (The Wall Street Journal, subscription).

The background: “The administration is proposing tariffs of up to 100% on Chinese-made cranes and other cargo-handling equipment as part of broader efforts to counter China’s dominance of the maritime industry.”

  • “Shipping industry officials say the fees would be stacked on top of 25% tariffs on Chinese-made cranes introduced under the Biden administration, and in addition to China duties being considered by Trump’s trade team.”

Chinese dominance: One Chinese company, Shanghai Zhenhua Heavy Industries, is the maker of nearly 80% of ship-to-shore cranes used in the U.S., and Chinese firms produce a total of 70% of all such cranes worldwide, according to U.S. government data.

  • Chinese cranes cost about $15 million on average—several million dollars less than competitors’ cheapest offerings, according to shipping industry leaders.
  • Meanwhile, there are no domestic U.S. producers of these cranes, nor can smaller manufacturers in other countries provide enough cranes to equip U.S. ports.

The risks: “Administration officials worry China’s control of critical infrastructure is an economic and a national security threat. They also allege some Chinese-made cranes have been fitted with communications equipment that could be used for espionage.”

The ask: Since a typical order for a ship-to-shore crane takes two years to fulfill, “port operators are asking the administration to provide tariff exemptions for cranes ordered before the end of 2024.”

  • “They are also asking the [U.S. Trade Representative’s] office to delay imposing levies on new crane orders for three years to give time for crane manufacturing to develop in the U.S., or for manufacturers in allied countries to expand production.”

NAM in action: The NAM has been in close contact with the USTR, advocating for policies that strengthen American shipbuilding instead of imposing burdensome new fees.

  • In March, the NAM weighed in on the Trump administration’s plan to impose fees on Chinese ships entering U.S. ports, saying, “The NAM encourages the administration to focus on revitalizing American shipbuilding—not burdening manufacturers in the U.S. through new port fees that will reduce the availability of the necessary cargo capacity at U.S. ports, increase pressure on domestic infrastructure and raise costs that may render American exports less competitive around the world.”

Earlier this week, the NAM followed up with the USTR to stress the burden that these port fees would cause, citing especially the difficulty they would pose for vehicle and liquefied natural gas exports. “We continue to have concerns regarding the overall impact to manufacturers in the U.S. of proposed and impending port fees,” said NAM Vice President of International Policy Andrea Durkin.

Policy and Legal

 DOE: U.S. Must Build Out Power Generation Capabilities—or Lose AI Race


The U.S. will lose the race for leadership in artificial intelligence unless it ramps up baseload power generation, the Energy Department said in a report issued Monday (E&E News).

What’s going on: If older, traditional-source power plants continue to close at the current pace and the construction of new facilities is not sped up, “DOE said that parts of the mid-Atlantic and Great Plains regions could face 400 hours of power outages in 2030 in a worst-case scenario where tech companies build giant energy-hungry AI data centers unabated.”

  • In the scenario laid out in the report, Eastern states served by regional transmission organization PJM Interconnection—including Maryland, Pennsylvania and Virginia—would see “power shortages … that could total more than a month over the course of the year” by 2030, owing in large part to unchecked data center growth.

Yes, but … The report also notes that grid operators would not greenlight data center construction that would harm “the reliability of the system.”

The big picture: Some 104 gigawatts of traditional power plant capacity is slated for retirement by 2030, according to the DOE—and it isn’t being replaced fast enough to meet projected demand. (For reference, one gigawatt is capable of powering about 850,000 homes.)

  • Last month, the NAM commended the administration for its plans to repeal the previous administration’s power plant regulations, which would have mandated unfeasibly stringent emissions rules on traditional-source power plants.
  • “A consensus of grid operators in U.S. competitive power markets like PJM and the Southwest Power Pool is that grid reliability faces extraordinary stresses if the heavy rate of [traditional power] plant retirements continues,” according to E&E News.
  • President Trump has pledged to beat China in grabbing the golden AI ring, an endeavor that will require far more generation—and one which the DOE report classifies as a national emergency.

Our take: “This report from the DOE underscores the need for the U.S. to maintain baseload power generation,” said NAM Director of Energy and Resources Policy Michael Davin. “We need to shore up, not shut down, power generation.”

  • The NAM has long urged policymakers to accelerate the permitting process for energy projects. In May, it responded to a request for information from the House’s AI and Energy Working Group seeking input about how to boost energy production, secure the grid and outcompete China in AI.
  • “Streamlining permitting processes, cutting red tape, requiring federal agencies make timely decisions and reducing the potential for baseless litigation will help prevent years-long delays that undermine manufacturers’ ability to compete globally,” the NAM told the committee.
Policy and Legal

Shuttling Goods Across the U.S.–Mexico Border


The Trump administration has approved a $10 billion infrastructure project that will speed up freight crossings over the U.S.–Mexico border—via an elevated transit system for self-driving shuttles (The Wall Street Journal, subscription).

What’s going on: Austin, Texas–based Green Corridors received a presidential permit to construct a 165-mile “guideway” connecting Laredo, Texas, and Monterrey, Mexico, using autonomous diesel-electric hybrid shuttles to carry cargo.

  • The system would operate like a monorail, with truck drivers dropping off 53-foot trailers at terminals before shuttles transport them across the border.
  • The company plans to build four terminals of about 100 acres each, with two on each side of the border.

Why it matters: Trade volume at the Port of Laredo has surged 28% since 2019, with more than 3 million truck crossings last year.

  • Current wait times average 45 minutes on weekday afternoons at existing bridges, creating supply chain bottlenecks for imports of auto parts, vehicles, appliances and electronics.

How it will work: The guideway would run alongside existing truck and rail operations, reducing congestion at this busy crossing.

  • Green Corridors will charge toll fees for companies using the service, focusing on trips under 200 miles rather than competing with long-haul railroads.

What’s next: Green Corridors still needs Mexican government permits and must negotiate with landowners before construction can begin.

  • The company expects to complete the project and enter testing by 2031, with the presidential permit expiring in five years if construction has not started by then.

NAM advocacy: As the U.S., Canada and Mexico prepare to discuss the U.S.–Mexico–Canada Agreement, the NAM remains one of the staunchest proponents of U.S. trade with the countries on its borders, having played an instrumental role in securing the USMCA in the first place.”

  • The stakes remain high, as International Trade Administration data show: one-third of U.S. imported manufacturing inputs originate in Canada and Mexico.

 

Business Operations

Milo’s Tea: From a Single Menu Item to a Household Name


What started as a menu item at a single burger restaurant has become a summer staple and a household name across the U.S.: Milo’s Tea.

What’s going on: “Today we’re a tea and lemonade company, but it didn’t start that way,” Milo’s Tea Company Chair and CEO Tricia Wallwork, a member of the NAM Board of Directors, told the “Today” show last week. “There actually was a guy named Milo, and he was my granddad.”

  • After serving in World War II, Milo Carlton—who had “always had a passion for food” and had been a cook in the army—opened a burger restaurant in Birmingham, Alabama.
  • His biggest hit? The eatery’s sweet tea. In 1946, Carlton and his family decided to start the beverage business.
  • In 2022, the firm became the top-selling refrigerated tea brand in the U.S. It’s also the fastest-growing refrigerated lemonade brand.

A manufacturing powerhouse: In April, the beverage maker opened its fourth manufacturing site, a 10,000-square-foot brewing and packaging facility in Spartanburg County, South Carolina.

A major success story: Today Milo’s Tea is available for sale in all 50 states at more than 55,000 retail locations—but it remains family-owned. (It’s also a certified women-owned business.)

  • When Wallwork took the helm in 2012, “we had [maybe] 40 people,” she said. Now, “we’re going to end this year with over 1,000.”

Making Milo proud: Still, despite its explosive success, the company—which will release a zero-sugar lemonade this year—is faithful to its roots.

  • “It was my grandfather’s recipe, and it’s still the same formula we use today,” Wallwork told “Today’s” Kathy Park.
  • “I think my grandparents would be so proud of the wonderful jobs we’ve been able to create and the many lives that we’ve been able to touch through our business and through our flavors and our brands.”

 

Policy and Legal

 Trump Extends “Reciprocal” Tariff Pause, Announces Modified Tariffs on More Than a Dozen Countries


President Trump has extended the 90-day pause on “reciprocal” tariffs over 10% until Aug. 1 and issued revised reciprocal tariff rates for several countries, set to take effect if no agreements are reached by then.

The extension: President Trump issued an executive order effectively extending the baseline additional 10% “reciprocal” tariff on all countries (except Mexico, Canada and China) until Aug. 1.

  • No new trade deals have been announced, though the White House has hinted that some may be revealed in the next day or two.
  • This pause is an extension of the original pause in the “reciprocal” tariffs that were announced on April 2. The pause has been in place since April 9.

Country-specific rates: The president also announced revised “reciprocal” tariffs for specific countries in the form of letters to his counterparts. These rates are similar to those announced in April, with some slightly lower.

  • Courtesy of the NAM’s trade policy experts, here is a link to a chart  comparing the April 2 rates with the July 7 rates and links to where each letter is posted on the president’s Truth Social account.
  • These letters also declared that if U.S. trading partners eliminate tariffs and other trade barriers, the U.S. may adjust the rates “upward or downward.”
  • However, the letters warn of retaliation if countries raise tariffs in response to these rates.

Other tariffs: The July 7 EO does not modify other International Emergency Economic Powers Act tariff rates applied to Canada, Mexico or China, and does not change any Section 232 tariffs in effect.

Manufacturing accelerator: The NAM has offered its own policy solution for the administration that will jumpstart American manufacturing, the U.S. Manufacturing Investment Accelerator Program .

  • This program offers a way to bring in inputs essential to manufacturing in the U.S.—and it rewards manufacturers that expand production, invest in new equipment and create jobs here at home.
Policy and Legal

U.S. Measles Cases Hit 33-Year High


The U.S. has the highest number of annual measles cases in decades, with at least 1,277 confirmed cases across 38 states and Washington, D.C. (The Washington Post, subscription).

What’s going on: “The nation surpassed infections reported in 2019, reaching the largest number of cases since 1992, when officials recorded more than 2,100 infections, according to data published Friday from the Johns Hopkins University Center for Outbreak Response Innovation.”

  • At least 155 people have been hospitalized with the highly contagious, vaccine-preventable virus, and three have died from associated complications so far in 2025.
  • All three fatalities were unvaccinated against measles, and about 92% of known measles cases this year have been in unvaccinated people.
  • By contrast, just three measles-related deaths in total were reported from 2021 to 2025.

Where it’s happening: “The largest outbreak has been in West Texas, where officials have recorded more than 750 cases since late January and believe the true toll is much higher.”

  • While the spread seems to be slowing, it also seems to be spreading to nearby states.

Why it’s happening: Since a 2019 outbreak in New York, confidence in America’s public health institutions has fallen, and now it’s “sharply divided along political lines.”

Eliminated or not? Though measles was considered eradicated from the U.S. in 2000, the increasing appearance of the viral disease in “close-knit communities with low vaccination coverage” jeopardizes the country’s “elimination status if there is continuous spread of linked measles cases for more than 12 months.”

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