Policy and Legal

Amid deep uncertainty about the legal and regulatory environment, attorneys in the manufacturing industry have an opportunity they won’t want to miss. The NAM Legal Center’s Manufacturing Legal Summit, scheduled for Nov. 12–14 in Washington, D.C., has opened registration this week.

The only conference crafted exclusively for manufacturing lawyers, the Summit attracts legal talent from companies of all sizes and sectors. Attendees learn about hot-button legal issues facing the industry, discuss best practices and make fruitful professional connections.

If you have in-house counsel who would benefit from this must-attend event, here’s what you need to know.

The details: This year, the fourth annual Manufacturing Legal Summit will focus heavily on the changes and trickle-down impacts brought about by the new Trump administration. Longtime NAM partner Foley & Lardner LLP will lead a session titled “Tariffs, Trade and Trump: Managing Supply Chain and Tariff Risks During an International Trade Tornado.” Other session topics include:

• Managing your workforce;
• M&A transactions in the manufacturing sector;
• PFAS and chemicals update;
• Administrative law under President Trump;
• AI, privacy and cyber; and
• Updates on the trial bar’s latest tactics.

The benefit: “What we hear consistently is that the opportunity to connect with others in the industry who are dealing with the same challenges is invaluable,” NAM Vice President and Deputy General Counsel of Litigation Erica Klenicki said following last year’s conference.

• “This was my first NAM Legal Summit, and I could not be more pleased with the topics presented, as well as the networking opportunities,” said Erin Tannock, compliance counsel for Viega LLC, about the 2024 Summit. “The content was relevant and current. I even had a few ‘aha’ moments! This event is worth the time, and I will be attending for years to come.”

Credits, too: An additional benefit of the conference is the potential to earn CLE credits, a professional requirement for attorneys. In 2024, attendees earned six or seven CLE credit hours for 32 different jurisdictions.

The last word: “In a year defined by uncertainty, the opportunity to benchmark with your manufacturing peers and the NAM legal team has never been so critical,” said Klenicki.

Washington, D.C. – On the 80th anniversary of Victory in Europe Day, National Association of Manufacturers President and CEO Jay Timmons released the following statement today in response to President Trump’s newly announced trade agreement with the United Kingdom—the first deal since the administration’s recent shift in global tariff policy last month:

“This is a strong start—but not the finish line. The NAM has long advocated for a comprehensive market-opening trade agreement with the U.K., and we welcome this initial commitment to work together to expand industrial market access—to create more manufacturing jobs and strengthen security on both sides of the Atlantic. This framework provides a meaningful foundation—but much more remains to be done. We will continue urging both governments to deliver a full zero-for-zero tariff agreement on all industrial goods at the end of these negotiations so that manufacturers have the certainty they need to plan, hire and compete.

“The U.K. is the fifth-largest market for U.S.-manufactured goods exports. In 2024 alone, manufacturers exported $61.6 billion in manufactured goods. At the same time, $58 billion in critical inputs—spanning automotive parts, pharmaceutical preparations and construction machinery—were imported from the U.K. to power U.S. production. In some sectors, up to 99% of these transactions are between related parties, underscoring the deeply integrated nature of our supply chains.

“Despite this integration, the administration has left the so-called ‘reciprocal’ tariff at 10% for many inputs necessary to keep Americans working. That’s why the NAM continues to call for zero-for-zero tariffs—adding certainty to strengthen competitiveness, lessen price pressures and support growth.

“We also see potential promise in the administration’s efforts to negotiate tailored arrangements on Section 232 tariffs on autos, steel and aluminum, with like-minded partners who share our national economic security interests.

“As the president indicated, we look forward to seeing full written details of the agreement in the coming weeks. With additional deals on the table—and just 61 days to act on the other 89 agreements—we need certainty and urge the administration to maintain momentum and deliver even more for manufacturers so they can invest, plan, hire and compete in America. At the same time, we urge Congress to make the 2017 tax reforms permanent now. If we see more trade agreements, tax reform legislation and more regulatory certainty—as part of our comprehensive manufacturing strategy—manufacturers win. And when manufacturers win, America wins.”

The Background

The NAM has led efforts to deepen U.S.–U.K. manufacturing ties for years. In Spring 2023, Timmons traveled to London to build support for a new trade accord and signed a memorandum of understanding with Make UK to strengthen bilateral manufacturing cooperation. The NAM has remained focused on core priorities, including:

• The elimination of tariffs and nontariff barriers;
• Strong digital trade commitments;
• Robust engagement on intellectual property issues;
• Collaboration on standards, technical regulations, testing procedures and conformity assessment; and
• Ensuring stronger alignment on customs procedures and approaches.

-NAM-

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 NAM advised the Department of Commerce on the integral nature of pharmaceutical and semiconductor manufacturers to the U.S. economy, explaining the potential negative impacts of tariffs on these sectors.

Pharmaceuticals: “Most medicines consumed in the U.S. are made in the U.S., and the industry invests more than $100 billion annually to develop new medicines for American patients and patients worldwide,” wrote NAM Vice President of International Policy Andrea Durkin to the Department of Commerce.

• “For manufacturers in the U.S. to sustain our nation’s global advantage in the discovery, development, production and delivery of pharmaceuticals, it is essential to safeguard a stable and reliable pharmaceutical supply chain network. Immediate and broad-based tariffs on imports of pharmaceutical inputs and finished products, many of which are sourced from allies and through related party transactions, undermine that very supply chain network,” she added.

Hurting innovation: “Pharmaceutical companies make up the largest share of [U.S. R&D] investment, accounting for 36.1% of all manufacturing R&D, spending $146.1 billion in 2023,” wrote Durkin. And companies’ ability to invest in R&D is tied directly to their revenue.

• “[F]or every 10% reduction in expected U.S. revenues, pharmaceutical innovation—such as clinical trial starts or new drug approvals—is expected to ultimately fall by 2.5% to 15%,” according to an analysis by the USC Schaeffer Center.

A better way: Instead of imposing counterproductive and damaging tariffs, the administration should adopt a comprehensive manufacturing strategy to support pharmaceutical innovation, wrote Durkin.

• This strategy includes making the 2017 tax reforms permanent, seeking to remedy the workforce skills gap, expediting permitting reform to enable domestic biopharmaceutical companies to expand their operations, fully equipping the Food and Drug Administration with the staff and resources it needs to operate swiftly and effectively, reforming pharmacy benefit managers (underregulated middlemen that drive up the costs of medications) and combatting the counterfeiting of pharmaceuticals.

Semiconductors: “The NAM believes it is vital for global economic leadership and for U.S. national security to promote a world-class semiconductor industry in America,” Durkin wrote to the Commerce Department in a separate communication, noting that chips are used throughout the manufacturing industry, in everything from medical devices, aircraft and spacecraft, data centers, automotive parts and vehicles, industrial automation and much more.

• “Semiconductor manufacturing capacity is expanding rapidly in China, supported by industrial targeting practices such as those set out in Made in China 2025, as well as trade-distorting industrial subsidies by the Chinese Communist Party. Tariffs have neither deterred China’s production advancements nor addressed the underlying unfair advantages conferred by the Chinese Communist Party.”

A better way: Instead of imposing tariffs, the Trump administration should pursue “policies that enable and facilitate domestic investments, unlock opportunities for economies of scale through full participation in global markets and leverage the collective advantages of America’s international allies to help make semiconductor supply chains more resilient,” Durkin wrote.

• “First, the Trump administration should support ongoing efforts by manufacturers to expand manufacturing production in the U.S. and attract, not deter, new investments. … Tariffs on imports that are used to build and operate semiconductor manufacturing facilities should be avoided or rebated.”
• “Second, the Trump administration should seek to maximize market opportunities for U.S. semiconductor exports, thereby strengthening the commercial position of U.S.-produced semiconductors worldwide. This can be accomplished by negotiating zero tariffs in new trade deals, preserving use of duty drawback and more strategic use of Export-Import Bank financing.”
• “Third, to strengthen the long-term resilience of the industry, the U.S. must partner with international allies to secure favorable trade and investment terms and leverage the collective advantages of global supply networks.”

The last word: “The Trump administration should pursue a comprehensive manufacturing strategy to support and sustain innovation and job creation in America, and to ensure the continued preeminence of our world-leading semiconductor and pharmaceutical sectors,” said NAM Managing Vice President of Policy Charles Crain.

Congress should act now to ensure that manufacturers and manufacturing workers are protected from so-called “proxy advisory firms,” the NAM told House lawmakers this week at two congressional hearings.

Flaws abound: Proxy firms—powerful, unregulated entities that advise institutional investors on how to vote on proxy ballot measures at public companies—wield outsized influence and must be reformed, NAM Managing Vice President of Policy Charles Crain told the House Subcommittee on Capital Markets at a Tuesday hearing, “Exposing the Proxy Advisory Cartel: How ISS & Glass Lewis Influence Markets.”

• Proxy firms operate with undisclosed conflicts of interest, are unwilling to allow companies to review their draft reports, and are resistant to correcting mistakes in their final vote recommendations. Despite these flaws, proxy firms “still control a significant share of investors’ proxy votes—giving them sway over important corporate decisions,” Crain said.
• In 2020, after years of NAM advocacy, the Securities and Exchange Commission finally adopted a rule to rein in these powerful firms—yet today, proxy firms remain unregulated due to ongoing legal challenges and regulatory neglect.
• “The SEC’s 2020 rule has spent five years hung up in court,” Crain told the subcommittee. “The NAM has had to defend the rule across three separate cases—one of which has oral arguments scheduled for this Friday.”

SEC has authority: Although the largest and most influential proxy firm, Institutional Shareholder Services, “is now claiming in court that the SEC lacks the authority to regulate proxy voting advice at all,” the Securities Exchange Act of 1934 clearly provides the SEC the authority to regulate proxy solicitation, which includes the activities of proxy firms, the NAM said.

Tighten the reins now: “Even assuming that the NAM is successful in defending the SEC’s authority, there is more work for Congress to do,” Crain continued. This entails acting on six House bills that would:

• Create a comprehensive registration regime for proxy firms;
• Ensure that proxy firms remain subject to anti-fraud liability;
• Ban certain proxy firm conflicts of interest;
• Regulate the use of automated “robo-voting” systems;
• Ensure that investment managers carry out their fiduciary duties to their clients when hiring proxy firms; and
• Direct the SEC to conduct a thorough study on proxy firms and the proxy process.  

Retirement savings in jeopardy: On Wednesday, Crain delivered a similar message for the House Subcommittee on Health, Employment, Labor, and Pensions at a hearing titled “Investing for the Future: ERISA’s Promise to Participants.”

• “More than 85% of manufacturing workers are eligible to participate in a workplace retirement plan. These Americans have probably never heard of a proxy firm, and they likely would be shocked to hear that their pension or 401(k) plan assets were being used in a way that could undermine their own retirement security,” Crain explained.
• But that’s exactly what’s happening when pension plan fiduciaries use “plan assets to pursue non-financial ESG goals—or blindly outsourc[e] the voting rights that come with those assets to unregulated and conflicted proxy firms,” he added.
• With their errors, conflicts of interest, political agendas, one-size-fits-all governance standards and more, proxy firms pose huge risks “to everyday Americans’ retirement security,” Crain said.   

Manufacturers support guardrails: “That’s why manufacturers support appropriate guardrails to ensure that ERISA fiduciaries act in plan participants’ best interests when making investment and voting decisions,” Crain explained, adding that the Labor Department under the first Trump administration finalized rules to “do just that.”

• While the last administration largely rescinded those guardrails, Subcommittee Chairman Rick Allen (R-GA) recently introduced a measure that would require ERISA retirement plan fiduciaries to prioritize financial returns when making investment decisions on behalf of clients and to exercise closer oversight of proxy firms.  

Stand up for workers: “Now is the time for Congress and the [Department of Labor] to stand up for these workers and ensure that ERISA plans are operating in their participants’ best interests,” Crain concluded.

In the news: Bloomberg (subscription) covered Crain’s testimony, as did Pensions & Investments (subscription) in two  articles.      
 
What’s next: As Crain previewed in his testimony, the NAM Legal Center will participate in oral arguments on Friday, May 2, before the U.S. Court of Appeals for the DC Circuit—arguing that the SEC has the authority to regulate proxy firms, and that the agency’s 2020 rule doing so was lawful. 

• “Is this high stakes? Absolutely,” Crain told Bloomberg. “Is this the end of the fight if the NAM were to lose? No, it’s not.”  

In a one-on-one interview with NewsNation’s Blake Burman just hours before President Trump spoke at a town hall with the same network, NAM President and CEO Jay Timmons continued to underscore the need for a comprehensive manufacturing strategy to make long-term investments.

• “First and foremost, we have got to get those tax reforms from 2017—that rocket fuel that President Trump announced at our board meeting in 2017—renewed, and Congress needs to move that forward,” Timmons said.
• “Regulatory rebalancing is something that’s very important. It’s about $50,000 per employee per year in compliance costs; that’s pretty expensive. We also need energy dominance. [Trump is] well on his way to making that happen.”
• He added that we need “good, solid trade policy” so manufacturers don’t see added costs. “We’re waiting to see how all this comes out. And we’re hopeful.”
• “If you have a comprehensive manufacturing strategy that you’re implementing … that includes all of those things I just mentioned to bring down the cost of business doing business here in the United States, you absolutely will see more investment,” he continued. Trump “announced that $5 trillion has already been committed. You’ll see more jobs, and you’ll also see higher wages and benefits.”

The long view: “Massive facilities … take a little while,” Timmons told Burman. “That is a realization that I need Americans to understand.”

• Such sites typically take years, he said, with the exact number depending “on how localities and states are moving along the permitting process.”
• “I was George Allen’s chief of staff when he was governor of Virginia,” Timmons went on, “and he made a commitment that he was going to move large scale projects in a very expeditious way. And we had a huge chip manufacturer that made an announcement, and [the company] said the doors will open in one year. [T]hey did, and that’s because all of government was really focused on doing that. You’ve got that commitment from this administration, there’s no doubt about that, but it’s typically three to five years for a large-scale manufacturing operation to come to fruition, and you’re talking about a 30-year commitment.”
• “So that’s another reason we need permanence when it comes to tax policy and trade policy.”

FOX Business: Timmons recently spoke with a group of FOX Business reporters to discuss the comprehensive strategy needed from Congress, focusing specifically on tax, trade and the manufacturing workforce.

• In a story from that interview published today, he said: “The 2017 tax reforms that President Trump actually announced at our board meeting in 2017,  [which he said] would be rocket fuel for the economy … indeed were. Those tax reforms led to record investment and job creation and wage growth for three years running after they were in enacted.”

The NAM’s comprehensive manufacturing strategy will be fundamental in “igniting the Industrial Renaissance of the United States,” the NAM told a House committee today ahead of a hearing of the same name.
 
What’s going on: “Manufacturers call on President Trump and Congress to implement a comprehensive manufacturing strategy that would create predictability and certainty to invest, plan and hire in America,” the NAM told the House Committee on Oversight and Government Reform.

• The purpose of the hearing was to examine how “cheap labor abroad, combined with overregulation and obstacles to permitting in the United States, contributed to the offshoring of American manufacturing and an overreliance on China to fulfill manufacturing needs.” It also emphasized “the importance of bringing manufacturing back to the United States.”   

What we’re saying: The NAM has been advocating that the administration adopt a multipoint plan to see the manufacturing sector flourish. Today it urged President Trump and Congress to take the following actions from that strategy as soon as possible:

• Make 2017 tax reform permanent: Make permanent the pro-manufacturing tax measures scheduled to sunset at the end of 2025 and bring back already expired provisions. Failure to do so will put almost 6 million U.S. jobs at risk, according to a recent EY–NAM study.
• Rebalance federal regulations: Manufacturers now spend $350 billion a year to comply with federal regulations. That’s money that could be spent on factory expansions, hiring and/or wage raises, as NAM President and CEO Jay Timmons has pointed out. The NAM also recently urged 10 key federal agencies to revise or rescind dozens of onerous, anachronistic regulations.
• Expedite permitting reform: “America should be the undisputed leader in energy production and innovation, but we will not reach our full potential without permitting reform.” This must include expediting judicial review, accelerating the permitting process, creating enforceable deadlines and more.
• Implement commonsense trade policies: “Building things in America only works if we can sell them around the world,” the NAM told the House members. “That is why manufacturers urge President Trump and Congress to provide greater predictability and a clear runway to allow them to adjust to new trade realities, while also making way for exemptions for critical inputs, enabling reciprocity in manufacturing trade.”

As three of the largest U.S. retailers—Walmart, Home Depot and Target—this week warned President Trump that his tariff policy could empty store shelves within weeks, upend supply chains and raise consumer prices, the tariffs already in place on imported goods are having effects on those who make things in America.

Speaking up: Manufacturers in the U.S. are sharing their stories of increased cost pressures and uncertainty, both the result of new tariffs. Makers of everything from machinery to bicycles to food service equipment are reporting ill effects.

• For Craig Souser, president and CEO of robotic packaging solutions manufacturer JLS Automation in York, Pennsylvania, steel tariffs in particular have had a big—and negative—effect on business.
• “[W]e’re seeing increased costs [in steel] that will eventually get passed along to the customer,” Souser told the York Dispatch (subscription).

“Writing the checks”: Chuck Dardas, president and chief operating officer of Michigan automotive parts manufacturer AlphaUSA, told NHK News recently that his small business and others like it are the ones “writing the checks for” the new tariffs—and it’s not something they can keep up.

• “To absorb 25% or 50% in tariffs, it’s a task that we cannot in the long term endure,” Dardas said. “It’ll cause our company and many other companies our size to probably go out of existence.”

The unknown: Perhaps the hardest part about the new tariffs: the uncertainty they bring, NAM board member Lisa Winton, CEO and co-owner of Georgia-based machinery maker Winton Machine Company, told NPR earlier this month.

• “We just noticed our first invoice that had a tariff line on it,” she said. “There’s just so much unknown right now, and I think that’s the most difficult thing—to make decisions for your company financially when you just don’t know all the pieces to the puzzle.”

No time: Arnold Kamler, chairman of Kent International, a New Jersey bicycle manufacturer, told Fox Business last week that while his business was already moving overseas production to the U.S. when tariffs hit, it has yet to complete the move—and that’s been a problem for his small outfit.

• “We’ve managed to move almost half of our production out of China already, but that’s only [almost] half,” he said. “We need more time. … [W]e’re a small company.”
• During the pandemic, “[e]verybody bought a bicycle”—but “things got very slow after that. … All the money we made during the pandemic is all gone, plus a lot more. Then we have these tariffs. [If the Trump administration had said], ‘Look … in nine months, 10 months, this will be the tariff,’” that might have been doable, he went on. “But we g[ot] two weeks’ notice. It’s impossible to run a company to plan for” that.

Passing on the costs: In Ohio, Wasserstrom Company President Brad Wasserstrom told 10 WBNS that his Columbus-based food service and supply company will most likely have to raise customer prices to pay for the new tariffs.

• “[W]e’re negotiating with suppliers when we can, if there’s any flexibility in what they’re passing on to us,” Wasserstrom said. “Some have been able to do something to help us out. They’re not passing through maybe the full tariff. But very few have said they’re going to pass on nothing.”

Washington, D.C. – In response to the President’s call for industry input on a new era of balanced, sensible and pro-growth regulation, the National Association of Manufacturers submitted recommendations to key federal agencies highlighting dozens of burdensome and outdated regulations that are driving up costs and undermining manufacturing competitiveness.

“Rebalancing regulations is a critical pillar of our comprehensive manufacturing strategy—which also includes making the 2017 tax reforms permanent, expediting permitting reform to unleash American energy, strengthening the manufacturing workforce and implementing commonsense trade policies,” said NAM President and CEO Jay Timmons. “Manufacturers are spending $350 billion each year just to comply with federal regulations—money that could be spent on expanding factories and production lines, hiring new workers or raising wages. The administration is already answering the calls of manufacturers across the country to reconsider and rebalance regulations that are holding manufacturers back. Using these recommendations as a guidepost, manufacturers look forward to continuing to work with the administration to fix rules that cost too much, trap projects in red tape, chill investment, do not make sense and harm the 13 million men and women who make things in the United States.”

The NAM has identified at least 44 regulations across 10 agencies that the Trump administration should consider revising or rescinding under Executive Order 14219, “Ensuring Lawful Governance and Implementing the President’s ‘Department of Government Efficiency’ Deregulatory Initiative.” Today’s action builds on the momentum of a December 2024 letter from the NAM and more than 100 manufacturing organizations to the transition team detailing regulatory actions the incoming administration could take to right-size regulations that stunted manufacturing growth and job creation. The administration has acted decisively on key manufacturing priorities already: lifting the liquefied natural gas export ban on day one, rescinding Securities and Exchange Commission Staff Legal Bulletin 14L in February and announcing in March that it plans to revise the Environmental Protection Agency’s PM2.5 and Power Plants rules.

The NAM’s submissions in response to EO 14219 target burdensome regulations at the following agencies: the EPA, SEC, Department of the Interior, Department of Energy, Department of Labor, Cybersecurity and Infrastructure Security Agency, Department of Health and Human Services, National Institute of Standards and Technology, Federal Trade Commission and Department of the Treasury.

Background:

EO 14219, issued on Feb. 19, directs federal agencies to conduct a top-to-bottom review of existing regulations within their jurisdiction and identify, within 60 days, those that impose significant costs that outweigh their benefits; exceed statutory authority; disproportionately hurt small businesses; or impede innovation, R&D, economic development and more.

-NAM-

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.

NAM President and CEO Jay Timmons will join congressional leaders for an “Invest in America” roundtable on Capitol Hill today to highlight the urgency of making the pro-manufacturing 2017 tax reforms permanent and more competitive.
 
The details: House Majority Whip Tom Emmer (R-MN), Treasury Secretary Scott Bessent, House Ways and Means Committee Chairman Jason Smith (R-MO) and other key Members of Congress will be in attendance. They will be joined by a group of NAM members of all sizes, representing manufacturing sectors such as metal fabricators, defense and pharmaceuticals and consumer-packaged goods, among others.

Timmons and Emmer: This morning, ahead of the closed-press meeting, Timmons and Emmer appeared on Fox Business’ “Mornings with Maria.” They reinforced the urgency of making these tax provisions permanent. Otherwise, “businesses in America are not going to invest” and “small businesses will get hit the worst,” according to Timmons.

Also this morning, Timmons and Emmer published a joint op-ed in Fox Business, which the White House amplified on social media.

• “The expiration of the Tax Cuts and Jobs Act would be detrimental to American businesses, manufacturers, consumers and families,” Timmons and Emmer wrote. “If Congress does not act to ensure President Donald Trump’s successful tax plan stays in place, taxes will go up for Americans at every income level. The average American would see a tax hike of 22 percent, over $1,600.”
• “A recent National Association of Manufacturers study indicated that failing to preserve these tax reforms will cost America 6 million jobs, $540 million in wages, and our economy will suffer a $1.1 trillion hit.”

GOP says: Emmer said on Monday that preserving tax reform was a “top priority” for Republican leaders.

• “The American people are hungry for an economic boom that is already underway,” Emmer told Fox News Digital. “But [it] will only be fully realized if Congress acts to continue the 2017 Trump tax cuts through reconciliation.”
• Bessent told the news outlet that “making President Trump’s Tax Cuts and Jobs Act permanent will help to secure the stable business environment that investors are seeking.”
• Timmons also spoke to Fox News Digital in an exclusive interview, saying “every day without action harms manufacturers’ ability to invest in America and plan for the future.”

NAM in action: The NAM is also launching a series of ads today featuring shop floor manufacturers advocating that the 2017 tax reforms be made permanent.

In the news: The roundtable was also covered by POLITICO’s Inside Congress and Morning Tax newsletters as well as Punchbowl.

The NAM is advocating for manufacturers’ trade policy priorities as part of a common-sense, comprehensive manufacturing strategy.
 
What’s going on: A proposed new entry fee on vessels entering U.S. ports would result in higher goods costs for consumers, according to the NAM. The administration is also proposing to put new tariffs on imported copper, timber and lumber products.

• The administration should instead “pursue a comprehensive manufacturing strategy that will create predictability and certainty to invest, plan and hire in America,” as the NAM recently told the Commerce Department.

Port fee would harm consumers: In February, the USTR put forth a proposal to charge up to $1.5 million for Chinese ships entering U.S. ports of call—but it’s a move the NAM said would prove harmful if put into effect.

• “This approach would effectively impose the minimum fee on nearly 100% of vessels making calls on U.S. ports, adding an estimated $600–$800 for each twenty-foot equivalent container unit. Shippers likely would pass the entirety of this cost through to their business customers, in many cases further raising the cost of manufacturing in the U.S,” the NAM told U.S. Trade Representative Jamieson Greer.
• In fact, manufacturers are already getting upwardly revised quotes of at least $1,500 more per container, the NAM continued.
• Instead of implementing the new fee, the USTR “should seek to directly remedy the non-market practices and subsidization of Chinese state enterprises that undermine global competition in the shipbuilding industry,” the NAM said.

Copper: The administration recently launched an investigation into whether copper imports pose a threat to national security.

• Though copper is critical to modern manufacturing, the U.S. copper sector’s vertical supply chain is currently “only capable of meeting 53% of domestic demand for refined copper cathode.” This makes importing copper necessary, the NAM told Commerce Secretary Howard Lutnick earlier this month.
• The NAM supports the Trump administration’s efforts to increase U.S. copper production and processing. Rather than impose tariffs, the administration should employ an NAM-crafted strategy: one that focuses “on making pro-growth tax reforms permanent, expediting permitting reform, restoring regulatory certainty, strengthening the manufacturing workforce and implementing effective trade policy,” the NAM told Lutnick.

Timber: The administration has also begun to investigate timber and lumber imports, and President Trump has promised to prioritize increasing U.S. timber production to decrease American reliance on imports. The NAM agrees, it told Lutnick in a separate communication—but new tariffs are not the answer.