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NAM President and CEO Jay Timmons appeared before the House Ways and Means Committee at the Ronald Reagan Presidential Library on Saturday, commending  legislators on the passage of comprehensive, pro-growth tax legislation earlier this month and underscoring the benefits of the law’s tax provisions for manufacturers nationwide.

What he said: “I want to begin simply by stating: thank you. Because you have made the investment of a generation in America’s manufacturers, you have strengthened the hand of the 13 million people who make things in America, and you have delivered historic pro-growth tax legislation powering every manufacturer in America to invest, innovate and lead,” Timmons said.

• “Let’s remember what was on the line: the Tax Cuts and Jobs Act of 2017 was rocket fuel for our industry. Powered by that legislation, our industry kept our promises. We created the most jobs in 20 years and the strongest wage growth in 15 years. We put more factories into motion, more shovels into the dirt and more prosperity into our communities.”
• “Several of the key provisions from 2017 had already expired, as would nearly all others by the end of this year. So this year was a time for choosing. We could double down on an investment that worked and make the 2017 provisions stronger and permanent, or we could let those provisions expire and wipe out 6 million jobs, more than half a trillion dollars in wages and more than a trillion dollars in GDP.”

The victory: “This is a manufacturers’ law through and through,” Timmons said.

• “By making immediate R&D expensing, full expensing of capital equipment and interest deductibility permanent, this Manufacturing Law delivers for investment and innovation.”
• “Through the pass-through deduction, reduced individual tax rates and estate tax provisions for family-owned businesses, this Manufacturing Law delivers for small businesses that power our economy.”
• “Through protecting the 21% corporate tax rate, and through strengthening the international tax system that incentivizes companies to invest here, build here [and] hire here, this Manufacturing Law will help deliver another American century.”

Reagan’s legacy: “As I speak with you today in the library that bears his name on behalf of the industry that you have reenergized, I think back to President Reagan’s very words when he signed the 1986 Tax Reform Act. …”

• “[President Reagan] said [of the American people]: ‘It was their hard work that built our cities and farmed our prairies, their genius that continually pushed us beyond the boundaries of existing knowledge, reshaping our world with the steam engine, polio vaccine and the silicon chip. It was their faith in freedom and love of country that sustained us through trials and hardships and through wars, and it was their courage and selflessness that enabled us to always prevail.’”
• “That’s the story of manufacturing. It’s a story that must go on—because when manufacturing wins, America wins,” Timmons added.

A promise: “[T]hrough the power and potential of these reforms, manufacturers will work every day to make sure that all Americans benefit,” Timmons concluded. “You have my word, and just as we did after 2017, manufacturers will deliver again.”

NAM on TV: Timmons also appeared on NewsNation to preview the hearing, emphasizing the importance of the new law’s tax provisions.

• “Manufacturers have been given an incredible opportunity with this tax law,” he said. “We called it ‘once in a generation.’ I think this is once in the lifetime of the country that we’ve seen something that is this competition focused, allowing us to attract investment to our shores.”

The U.S. and European Union have announced a trade deal, but no joint statement or official order has been released, though the White House issued a broad fact sheet. The president must issue an executive order or other legal document amending his April 2 EO that established “reciprocal” tariff rates to make the terms of the new trade deal official.

15% tariff: President Trump said that U.S. goods would gain access to European markets without tariffs, but the specific terms of that arrangement are not yet known.

• Meanwhile, the EU agreed to a 15% tariff by the U.S. on its products, which it regards as a “clear ceiling.”
• The 15% tariff on EU goods will apply “across most sectors, including cars, semiconductors and pharmaceuticals,” according to a statement issued by EU President Ursula von der Leyen.
• President Trump and EU leaders also made differing statements about metals, with the EU statement saying that metal “tariffs will be cut. A quota system will be put in place.” President Trump, however, said the 50% tariff on steel and aluminum would remain.

Zero-for-zero: According to the EU statement, the U.S. and EU agreed on zero-for-zero tariffs on many strategic products, including all aircraft and component parts, certain chemicals, certain generics, semiconductor equipment, certain agricultural products, natural resources and critical raw materials.

• This agreement, if verified, would reflect in part the NAM’s longstanding advocacy of zero-for-zero tariffs on industrial trade.
• The EU has also said it is working to get other products added to this list.

EU investments in the U.S.: President Trump suggested the EU would purchase $750 billion in U.S. liquefied natural gas, oil and nuclear fuels; buy U.S. military equipment; and increase its foreign direct investment into the United States by $600 billion. The EU statement references energy and U.S. AI chips.

Stay tuned: These statements represent an uncertain sketch of an eventual deal, and the NAM will report on the official terms of the agreement once they become available.

• Meanwhile, President Trump indicated in a press conference that other countries might soon receive tariff letters outlining new rates, though these too require EOs to become official policy.

A bipartisan duo in Congress has introduced legislation to speed up permitting reviews under the National Environmental Policy Act while limiting legal challenges (POLITICO Pro, subscription). The NAM has called for NEPA reform for years.

What’s going on: Last Friday, House Natural Resources Committee Chairman Bruce Westerman (R-AR) and Rep. Jared Golden (D-ME) unveiled the SPEED Act to “help launch America into a future where we can effectively innovate and implement to revitalize our infrastructure, meet skyrocketing energy demands, lead the world in the AI race and work in harmony with our natural environment,” said Westerman, who told POLITICO Pro there “really seems to be momentum” in the government to make the changes outlined in the measure.

The backdrop: House Majority Leader Steve Scalise (R-LA) said last week Republican leadership plans to make bipartisan permitting reform a priority this fall.

• “Under direction from Trump’s Inauguration Day executive order, the Council on Environmental Quality has pulled back federal-wide NEPA regulations, and agencies have weakened their own NEPA rules.”
• Senate Democrats have said recently they’re willing to restart permitting reform talks with Republicans.

What the measure would do: The SPEED Act “would codify parts of a May Supreme Court ruling that limited the scope of environmental reviews” and build on 2023 NEPA reforms, including the establishment of a two-year time limit on conducting environmental impact statements. And among other actions, it would:

• Stop agencies “from evaluating impacts outside the immediate causal result of the proposed action”;
• Reduce the number of projects that can be deemed “major federal action” and thus become subject to the NEPA process;
• Set a higher bar for judicial challenges, mandating that litigants sue within 150 days and courts issue judgments within 180 days;
• “[O]nly allow parties that provided substantive comments during the public review period the opportunity to issue a legal challenge”; and
• “[L]imit a court’s ability to remand an agency decision.”

Our take: “This bill provides critically needed clarity and guardrails for manufacturers to invest and grow in America—while maintaining public input and safeguarding our environment,” said NAM Vice President of Domestic Policy Chris Phalen.

• “Energy sources of all types have for too long run into needless delays and frivolous litigation—delaying jobs for Americans and getting electrons on our grid. Manufacturers look forward to working with Chairman Westerman and Rep. Golden to advance this legislation as part of a comprehensive and bipartisan permitting reform package to drive America forward.”

The Manufacturing Institute, the NAM’s 501(c)3 workforce development and education affiliate, has released a blueprint for much-needed changes to federal workforce policy.

• This framework is the manufacturing industry’s response to President Trump’s Executive Order 14278, which calls for the modernization of the federal workforce system and the expansion of employer-led apprenticeship opportunities.

Manufacturers’ voices: The MI spent months consulting with manufacturers across the country as it formulated its recommendations. Firms of all sizes and sectors, in both rural and urban locations, told the same story: too few workers with the necessary skills are applying for the many open jobs in the industry, and this shortage has become a threat to America’s economic health.

• These testimonials echo previous findings from the MI: A landmark 2024 study it produced with Deloitte found that the U.S. manufacturing sector will face 3.8 million job openings by 2033—more than half of which may go unfilled without substantial investment in workforce development.

A policy update: To remedy this dire situation, the MI is recommending a slate of new policies to the Departments of Labor, Education and Commerce to help inform their own recommendations to the White House. Among other actions, it advises federal policymakers to:

• Promote employer participation in program design and delivery to ensure training reflects real-time industry needs;
• Simplify and stabilize access to funding for employer-led training initiatives, particularly for small and medium-sized manufacturers; and
• Expand support for incumbent worker training to help manufacturers invest in upskilling their current workforce and retaining talent.

Apprenticeship reform: The MI also offers specific recommendations for creating and enhancing employer-based apprenticeship programs. Policymakers should:

• Support flexible work-based learning models, including apprenticeships by right-sizing the regulatory scheme and investing in program development and expansion;
• Incentivize employer-responsive organizations to serve as apprenticeship intermediaries to assist employers in launching and managing programs; and
• Expand financial incentives for employers to create and operate apprenticeships.

Read the whole thing: You can read the MI’s full list of recommendations for policymakers here.

Hands-on experience: The MI’s recommendations are informed by its own expertise in running a nationwide apprenticeship program.

• The MI manages the Federation for Advanced Manufacturing Education (FAME USA), founded by Toyota, which has become the new American model for manufacturing skills training.
• With nearly 500 employers participating across 46 locations in 16 states, FAME has graduated more than 2,700 students, has nearly 1,500 students currently enrolled and boasts a 90% job placement rate.

The MI says: “It’s more important than ever that we ensure manufacturers in the U.S. have the talent they need for today and tomorrow—talent that is prepared with the skills necessary to compete,” said MI President and Executive Director Carolyn Lee.

• “The United States has long faced a structural workforce shortage, and we applaud the Trump administration for recognizing that the federal workforce development infrastructure needs to be streamlined and focused on supporting manufacturers’ and employers’ talent needs.”

To win the artificial intelligence race with China and better compete with Russia, the U.S. must reduce its project-approval times, the head of the largest American natural gas company has warned Congress (Financial Times, subscription).

What’s going on: “Congress [needs] to step up and act,” EQT President and CEO Toby Rice told the FT regarding the need for the government to streamline “America’s byzantine permitting process,” which has greatly increased infrastructure project costs and times.

• “The threat of not getting infrastructure built has only gotten larger,” he continued. “Not only from bad actors getting rich by selling energy that could be replaced with American energy—it’s also the threat of China winning the AI race.”
• The biggest concern, according to Rice: judicial review, which allows for up to six years of legal challenges of permit decisions.

We need it all: In recent years, the U.S. has been shuttering baseload power plants and making it harder for companies to build natural gas infrastructure, Rice continued, and as a result, prices have risen and the electrical grid is becoming unreliable.

• Since the start of his second term, however, President Trump has prioritized making the U.S. energy dominant, taking actions like lifting the previous administration’s ban on new LNG export permits.

The backdrop: “These actions come as the U.S. races to meet growing domestic and global power demand caused by the data centers used to build and develop AI.”

• Global electricity demand from data centers is expected to double by 2030, according to the International Energy Agency.

A positive step: This week, EQT “signed an agreement in principle to provide gas to a 4.4[-gigawatt] plant that will power the Homer City Energy Campus, a 3,200 acre data center in Pennsylvania.”

Europe, too: Europe has been trying to wean itself off Russian gas since Russia’s invasion of Ukraine in 2022.

• This week, ENI—one of Europe’s biggest energy firms—signed an agreement to purchase 2 million metric tonnes of LNG from U.S. company Venture Global.

The NAM’s view: “Mr. Rice is right that, as the NAM has long said, the U.S. permitting system is holding us back,” said NAM Vice President of Domestic Policy Chris Phalen.

• “The administration has made important strides in cutting needless red tape, but manufacturers need comprehensive permitting reform legislation from Congress that supports all energy sources and makes improvements to our transmission and distribution systems for the nation to reach its full potential.”

Researchers seeking new methods of generating thermal energy are now trying something new: the oil and gas industry (POLITICO’s E&E News).

What’s going on: “State research officials in North Dakota are examining two new options—pairing geothermal with active oil and gas sites and using captured carbon dioxide as a feedstock for geothermal power production.”

• The state gave the go-ahead in June for a $250,000 feasibility study looking at “whether those two new geothermal technologies could be used” there.

Why it’s happening now: President Trump signed an executive order in April, calling for the elimination of “all illegitimate impediments” to the development of geothermal projects.

• Geothermal power enjoys bipartisan support in Congress, and federal tax incentives for both geothermal and carbon capture and storage have “created an environment where companies and researchers can start to explore different methods of production,” Matt Villante, an earth scientist with the Pacific Northwest National Laboratory, told E&E News.
• In addition, the 45Q tax credit, which offers an incentive for carbon management undertakings that capture carbon dioxide, was preserved in the recent reconciliation bill.

How it works: Researchers are exploring several different methods for using captured carbon dioxide to produce geothermal energy, which is traditionally extracted “by drilling and pumping up brine from deep within the earth.”

• One method would involve injecting large amounts of carbon dioxide into the ground to push out the brine.
• “Another approach could be pushing CO2 underground to the heat source, and pumping back up the heated CO2 to power the turbines, then injected the cooled carbon dioxide back underground in a closed-loop system.”
• A third way would use hydraulic fracturing to break up “hot dry rock” using carbon dioxide.

Yes, but…Despite the support for geothermal, actual projects to harness it are thin on the ground.

• In 2023, only about 0.4% of U.S. power came from geothermal sources, according to the U.S. Energy Information Administration, as “investors … [wait] for the existing technology to become safer bets.”

The NAM says: “While geothermal represents a small portion of the energy mix now, the NAM supports efforts to invest in developing the technology so that the U.S. has more sources in its all-of-the-above energy portfolio,” said NAM Director of Energy and Resources Policy Michael Davin.

Indium Corporation, founded in Upstate New York, has a long record of turning challenges into innovations.

Not long after its namesake element, indium, failed as an anti-tarnish silverware coating, the company discovered during World War II that it could be used instead in aircraft bearings. Then once jet engines made that application obsolete, the company began using indium to coat glass in everything from electronics to supermarket refrigeration units. Today, indium is used in all sorts of fields, from aerospace, to telecommunications, to tumor eradication.

• “We’re always exploring how we can add ingredients to a material, or find a new way of looking at something, or solve a problem in a different way,” said President and CEO Ross Berntson. “At Indium Corporation, we believe that materials science changes the world.”

Now, Indium Corporation is turning its attention to a new and pressing issue: creating a North American supply chain for a critical mineral.

Exploring challenges: Gallium is a byproduct of aluminum production that is essential for everything from semiconductors, to electric vehicles, to wearable electronics. But while demand for gallium is rising, 98% of gallium today comes from China—creating a single supply chain that is vulnerable to international challenges and disruptions.

• “That’s just simply not a robust supply chain, right?” said Berntson. “We need to make a stronger, more robust global supply chain. And the first step is to bring on a North American supply.”

Developing solutions: Indium Corporation is working with Rio Tinto, one of the world’s largest aluminum producers, to extract gallium from North American bauxite sources in Canada.

• With a strong stable of engineers, proximity to a tremendous amount of hydroelectric power and a commitment to sustainability, Indium Corporation sees Rio Tinto as the perfect partner for this effort.

Setting goals: Through the partnership, Indium Corporation and Rio Tinto aim to produce up to 40 tons of gallium per year in North America—a significant portion of the 600–700 tons of gallium that is used annually. And for Berntson, the innovation that will result is the most exciting part.

• “Not only does this work secure the supply chain for existing applications, but it also creates a robust source of gallium so people can get creative with it—for new alloys and new compounds that nobody ever thought of before,” said Berntson. “It’s exhilarating to think about having more gallium available, and what we can do with a bunch of creative minds working with that element.”

Calling for partnership: While Indium Corporation is investing heavily in gallium production, Berntson believes that public–private partnerships are key to mitigating risk and ensuring that gallium exists as a resource that can enable American competitiveness.

• “The availability of gallium is bigger than any one company,” said Berntson.

The key to success: Berntson credits his company’s talented engineers with Indium Corporation’s success—and emphasizes the need to let brilliant minds find unexpected solutions.

• “There’s a ton of talent in the world,” said Berntson. “Bringing them in, helping them to grow and giving them enough space to be innovative—time and time again, that’s how we’re able to be at the leading edge of our industry.”

The Trump administration has released the text of a framework agreement with Indonesia yesterday, also announcing a deal with Japan that has not been made public yet.

Framework agreement with Indonesia: The document released yesterday is a framework for negotiating an “Agreement on Reciprocal Trade.” It includes some commitments but also lays the groundwork for more negotiations.

U.S. exports to Indonesia: Indonesia will “eliminate tariff barriers” on approximately 99% of U.S. industrial and agricultural exports.

• For context, U.S. manufacturing exports to Indonesia in 2024 were $6.5 billion of the $10.2 billion total. Manufacturing imports from Indonesia in 2024 were $25.4 billion of the $28 billion total.

U.S. imports from Indonesia: This agreement would reduce the U.S. tariff on imports from Indonesia to 19% from the 32% rate imposed by the Trump administration on April 2.

• Significantly, the agreement suggests the U.S. “may identify certain commodities not naturally available or domestically produced for further reduction in the reciprocal tariff rate.”
• This type of approach is exactly what the NAM has pushed for in its proposed U.S. Manufacturing Investment Accelerator Program, and it will continue advocating for such policies in subsequent trade agreements.

Critical minerals: Indonesia, which had previously banned exports of nickel, will also remove restrictions on exports to the U.S. of industrial commodities, including critical minerals.

Other key components: The agreement also achieves commitments by Indonesia on other key trade issues.

• Nontariff barriers: Indonesia will accept U.S. standards and certifications for vehicles, medical devices and pharmaceuticals, exempt certain U.S. products from local content requirements and also allow the import of U.S.-remanufactured goods.
• Digital trade: The country will also now support the World Trade Organization’s e-commerce moratorium on tariffs on electronic transmissions—something it had opposed previously and that is essential to manufacturers seeking to move information across borders.
• Steel: Indonesia pledged to join the Global Forum on Steel Excess Capacity, an approach the NAM supports to address unfair subsidization and excess production, particularly by China, that distort global markets.
• China: Indonesia will work with the U.S. to address the unfair practices of other countries and to cooperate on export controls, investment security and combatting duty evasion.
• Purchases: Indonesia has agreed to purchase U.S. aircraft, agricultural products and energy products.

More to come: President Trump has previewed agreements with the Philippines and Vietnam on social media, while Japanese officials have announced an agreement on tariffs at a press briefing. The NAM will report on the official details once they are available.

The bigger picture: Here are some other trade developments that the NAM is tracking:

• U.S. Treasury Secretary Scott Bessent will meet his Chinese counterpart in the coming days.
• President Trump will travel to Scotland for discussions on “finalizing” details in the U.K. deal.
• Talks with the EU, Canada and Mexico continue.
• And lastly, the president has signaled he may send letters setting a flat rate of 10–15% tariffs to some 150 countries.

Westinghouse will construct 10 large nuclear reactors in the U.S., the energy company told President Trump at a roundtable in Pennsylvania this week (CNBC).

What’s going on: “Westinghouse’s big AP1000 reactor generates enough electricity to power more than 750,000 homes, according to the company. Building 10 of these reactors would drive $75 billion of economic value across the U.S. and $6 billion in Pennsylvania,” Westinghouse interim CEO Dan Sumner said Tuesday during Sen. Dave McCormick[’s] (R-PA) inaugural Pennsylvania Energy and Innovation Summit at Carnegie Mellon University.

• The U.S. has built just two nuclear reactors in the past three decades, both Westinghouse AP1000s at Plant Vogtle in Georgia.

Presidential appearance: President Trump also announced at the summit that private companies will invest some $90 billion in Pennsylvania (CBS News).

• “We’re building a future where American workers will forge the steel, produce the energy, build the factories and really run a country like, I believe, this country has never been run before,” the president said, according to CBS. “I think we have a true golden age for America.”

Keeping energy promises: In May, President Trump issued four executive orders that seek “to quadruple nuclear power in the U.S. by 2050,” CNBC reports. “The president called for the U.S. to have 10 large nuclear reactors under construction by 2030.”

The event: The event at which the announcements were made featured panel discussions with energy and technology industry leaders, including Toby Rice, president and CEO of energy company EQT Corporation, and Amazon Web Services CEO Matt Garman.

• In June, Amazon announced a $20 billion investment in data centers in Pennsylvania, according to CBS.

Why it’s important: With the fast pace of data center construction and the rapid adoption across industries of energy-intensive generative artificial intelligence, the U.S. must expand baseload power generation capabilities, the NAM said.

• “Westinghouse’s announcement of 10 new nuclear reactors in the U.S. marks the start of a fulfillment of a promise made by President Trump,” said NAM Director of Energy and Resources Policy Michael Davin. “Nuclear energy is safe, carbon-free and available 24 hours a day, year-round. It’s a critical component of the energy future we need to keep manufacturing in the U.S. thriving.”

Like many manufacturing sectors, the aerospace industry is facing an alarming workforce shortage: its ranks of certified mechanics are aging rapidly, and the sector needs many more young people to fill available jobs (CNBC).

By the numbers: “The average age of a certified aircraft mechanic in the U.S. is 54, and 40% of them are over the age of 60, according to a joint 2024 report from the Aviation Technician Education Council and consulting firm Oliver Wyman, which cites Federal Aviation Administration data.”

• “The U.S. will be short 25,000 aircraft technicians by 2028, according to the report.”

High-paying jobs: The industry offers excellent salaries, an inducement for prospective employees, CNBC points out.

• “Median pay for aircraft technicians or mechanics was $79,140 a year in the U.S. in 2024, compared with a nationwide median income of $49,500, according to the Bureau of Labor Statistics.”

Manufacturing as a whole: The aerospace industry’s worker shortage is part of a larger labor crisis in manufacturing, which could need as many as 3.8 million new employees by 2033, according to a Deloitte and Manufacturing Institute study from last year.

• The study found that 1.9 million jobs could be left unfilled, underscoring the urgency of attracting more young people to the industry.

MI at work: Through initiatives like Heroes MAKE America, the MI, the workforce development and education affiliate of the NAM, is helping veterans and other Americans with applicable skills transition into jobs in the industry.

• HMA prepares transitioning service members and members of the military community for manufacturing careers.

Heroes in aerospace: The MI’s partners include major aerospace firms Textron Aviation and Gulfstream Aerospace Corporation. Earlier this year, HMA launched a new FAA Airframe & Powerplant certification training program to help fill the critical industry need for A&P mechanics.

• The program is offered at two locations. The first is in Wichita, Kansas, near McConnell Air Force Base, supported by Textron Aviation and delivered in partnership with Wichita State University’s Campus of Applied Sciences and Technology.
• The second location is in Georgia near Fort Stewart, in partnership with Gulfstream Aerospace Corporation and Savannah Technical College.
• The program offers an accelerated six-week course to fast-track participants toward FAA A&P certification, helping qualified service members become more capable and mission-ready during their military service and providing a steady pipeline of skilled talent for the aviation industry.

The last word: “Heroes MAKE America and our new Airframe & Powerplant certification program are critical to closing the aerospace skills gap,” said MI President and Executive Director Carolyn Lee.

• “By equipping transitioning service members with the specialized training they need, we’re creating an effective pathway to high-demand, certified aircraft mechanic jobs. These initiatives not only support our veterans but also build a skilled, ready workforce that the aerospace industry urgently needs to thrive.”