News

If the administration wants manufacturing in the U.S. to succeed, it needs a planned strategy—one that includes extending the pro-growth provisions from the 2017 Tax Cuts and Jobs Act and gets the tax bill containing most of President Trump’s legislative agenda passed quickly. That was the message from NAM President and CEO Jay Timmons on Fox Business’ “Maria Bartiromo’s Wall Street” last week.

What’s going on: “Manufacturers were very excited that we had a new president in January who said, ‘We’re going to get this … [tax] bill done. We’re going to extend the cuts from 2017,’” Timmons told show host Maria Bartiromo on May 30 on location at the 2025 Reagan National Economic Forum in Simi Valley, California. “But now we have the uncertainty … that really requires this bill to be done as soon as possible. It’s urgent now.”

• The Senate returned this week from its Memorial Day recess with the legislative agenda as its top priority.
• The GOP hopes to extend the TCJA tax cuts permanently, while Democrats want the nonpartisan parliamentarian of the United States to determine whether an extension without an end date would violate the Senate’s Byrd rule.

Why it’s important: More than 85% of manufacturers in the U.S. say Congress must preserve the TCJA’s provisions in response to trade uncertainty, according to the NAM’s latest Manufacturers’ Outlook Survey, which Bartiromo cited.

• At risk if it doesn’t preserve the measures: some 6 million jobs and a $1 trillion economic hit.

Certainty on trade: But more is needed, Timmons said.

• The trillions of dollars in U.S. investments secured recently by the administration are definite wins—but only “as long as we have that strategy in place,” which, in addition to sound tax policy, includes regulatory certainty.
• “Trade is going to be critical,” Timmons told Bartiromo. “We need to have the certainty around whatever the rules of the game are regarding our trading practices and the work we do with our trading partners, because if we don’t have the right policies in place, and imports do end up costing us a lot of money for critical inputs for manufacturing, we can’t build those facilities.”
• For every dollar of manufactured inputs imported to the U.S., “we get $1.40 of output,” Timmons went on. “And so if we tariff everything the same, we may be in a little bit of trouble when it comes to making those investments.”

The latest resources for the NAM’s tax campaign may be found on the “Manufacturing Wins” webpage.