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The introduction of artificial intelligence has been a boon to manufacturing, and the technology will continue to have a positive impact—as long as regulations are “right-sized,” manufacturers told Congress this week.

What’s going on: “Manufacturers are utilizing AI in myriad ways on the shop floor and throughout their operations,” the 17�Թ����� the House Subcommittee on Commerce, Manufacturing and Trade in a statement for the record at Wednesday’s hearing, where data was .

• “The diverse use-cases of AI in manufacturing suggest a need for a cautious regulatory approach to this groundbreaking technology: one that supports innovation and U.S. leadership in AI while providing context-specific, risk-based, right-sized rules of the road for manufacturers,” the 17�Թ����� said.
• Giving testimony at the hearing, Siemens USA President and CEO and 17�Թ����� Board Member Barbara Humpton discussed the many benefits of using AI in manufacturing and emphasized the need to ensure that AI regulations include “targeted” rather than “overly broad” definitions.

Industrial vs. consumer-focused AI: First, it’s important to distinguish between industrial and consumer-facing AI, Humpton told the subcommittee members.

• “Industrial AI is different from consumer AI,” she said. “Industrial AI uses controlled data from the manufacturing environment to help manufacturers create business value. Think better products, more efficient operations, a more prepared workforce. … AI will enable all companies—from startups to small and medium enterprises to industrial giants—to thrive in this new era of American manufacturing.”
• In , she added that “the core distinction of industrial AI is that it is trained on highly monitored data from sensors and machines, providing a more reliable foundation for training AI models.”

Simple, singular and targeted: Regulation of AI should be undertaken with a light touch and following a full accounting of on-the-books laws to prevent duplicative and/or contradictory rules, the 17�Թ����� said.

• “[P]olicymakers should always review existing laws and regulations before enacting new ones, because most uses of AI correspond to tasks and objectives that industry has faced for a long time and that are thus highly likely to have already been addressed by existing laws and regulations,” said the 17�Թ�����, which also referenced its first-of-its-kind , “Working Smarter: How Manufacturers Are Using Artificial Intelligence,” released last May.
• “Similarly, policymakers must right-size any compliance burden associated with AI regulation,” the 17�Թ����� continued. “The ubiquitous use of AI throughout modern manufacturing, as well as manufacturing’s dependence on innovation, underscore the need for rules that enable rather than hinder manufacturers’ development and adoption of AI systems.”

Protect without hindering: Congress “must advance industrial AI by prioritizing strong rules for digital trade, especially to include strong protections for source code and algorithms,” Humpton went on in her written testimony. “We encourage policymakers to build upon the success of previous U.S.-led efforts to protect intellectual property.”

• Legislators must also safeguard privacy and protect against baseless legal claims, the 17�Թ����� said. “[I]t is … crucial that Congress take steps to maintain the privacy of personal data when utilized in AI contexts. … A federal standard should avoid a patchwork of state-level rules by fully preempting state privacy laws; it also should protect manufacturers from frivolous litigation.”

The last word: “The range and importance of uses of AI—transforming every aspect of the core of manufacturers’ operations—make it clear that AI has become integral to manufacturing,” said the 17�Թ�����. “With the right federal policies, manufacturers in the U.S. will continue to devise new and exciting ways to leverage AI to lead and innovate and stay ahead of their global competitors.”

Washington, D.C. – Following the Securities and Exchange Commission’s rescission of Staff Legal Bulletin 14L, which required publicly traded manufacturers to include activists’ ESG proposals on their proxy ballots even when the issues raised were unrelated to their business, 17�Թ����� President and CEO Jay Timmons released the following statement.

“Manufacturers asked for regulatory certainty, and President Trump has delivered. Today’s action by the SEC under Acting Chairman Mark Uyeda’s leadership depoliticizes the proxy process—a crucial plank of President Trump’s pro-manufacturing deregulatory agenda.

“As we relayed to President Trump in December, SLB 14L empowered activists at the expense of manufacturers and Main Street investors—turning the proxy ballot into a debate club, forcing businesses to court controversy and divert resources from growth and value creation. Returning the SEC’s review of shareholder proposals to a company-specific process based on relevance to a business’s operations and its investors’ returns will allow manufacturers to focus on what they do best: investing for growth, creating jobs and driving the American economy.”

Background:

In December, the 17�Թ�����, along with more than 100 manufacturing associations, ��to President Trump highlighting more than three dozen regulatory actions across a wide range of agencies that would boost the manufacturing economy and put a stop to the regulatory onslaught that is costing manufacturers��$350 billion each year, according to . President Trump began tackling these issues on Day 1, including by lifting the pause on liquefied natural gas exports. Today’s move by the SEC is another important step in the administration’s efforts to address burdensome regulations that are stifling manufacturing investment and growth

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The 17�Թ����� 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 17�Թ����� 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 17�Թ����� or to follow us on Twitter and Facebook, please visit .

Washington, D.C. – 17�Թ����� President and CEO Jay Timmons released the following statement:

“Manufacturers in the United States are facing intense global competition, economic headwinds and unfair trade practices from adversarial nations. With critical tax reforms having lapsed and others still set to expire as well as inaction on comprehensive permitting reform, our industry is struggling to invest, innovate and compete.

“Manufacturing is a capital-intensive industry—and we must plan months and often years in advance to grow and compete. We cannot afford to wait on action, especially with additional cost pressures from the renewal and extension of tariffs. Manufacturers are calling on Congress to act now to renew the 2017 Tax Cuts and Jobs Act—failure to do so will put 6 million jobs at risk and make it even harder for manufacturers to drive growth and strengthen supply chains. We cannot risk giving our competitors an edge while jeopardizing American jobs and economic strength.”

-17�Թ�����-

The 17�Թ����� 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 17�Թ����� 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 17�Թ����� or to follow us on Twitter and Facebook, please visit

To lift much of the burden on manufacturers in the U.S., Congress must reinstate pro-growth tax measures, enact commonsense regulatory reforms and undertake comprehensive permitting reform. That was the main message of Click Bond CEO and 17�Թ����� Small and Medium Manufacturers Group Chair Karl Hutter to legislators yesterday on Capitol Hill.
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What’s going on: “American businesses now shoulder a staggering $3 trillion annually in regulatory costs—disproportionately impacting manufacturers,” Hutter the House Committee on Small Business at Wednesday’s hearing.

• “Unfortunately, small companies get hit twice—with unworkable regulations that apply to them [and again with] compliance and reporting requirements that larger firms are forced to pass down. Fortunately, Congress and the Trump administration have the opportunity to reverse course.” ����

Rocket fuel for manufacturing: The 2017 Tax Cuts and Jobs Act “was rocket fuel for Click Bond,” said Hutter—whose Carson City, Nevada–based family business makes adhesive-bonded fasteners used by the U.S. military, commercial aviation industry and NASA.

• “The new 21% corporate tax rate allowed us to raise wages for production employees, invest in capital equipment, strengthen our employee tuition support program and accelerate the timeline for constructing a new facility. The new 20% pass-through deduction likewise empowered our suppliers and partners to reinvest in their businesses, readying them to support our growth.”����

Changes for the worse: But growth was halted in 2022 and 2023, when provisions from the TCJA began to expire. : More pro-growth tax measures are due to expire at the end of this year—unless Congress intervenes.

• “It is now more expensive for Click Bond to conduct R&D, the lifeblood of both our product and process innovation,” according to Hutter. “It’s more expensive for us to purchase capital equipment, the tools that will unleash the productivity of our team. And it’s more expensive for us to finance job-creating investments such as that state-of-the-art, sustainable manufacturing facility.”����

Ill effects: According to a recent released by the 17�Թ�����, nearly 6 million American jobs and more than $1 trillion of U.S. GDP will be at risk if Congress fails to act by the end of this year to preserve TCJA’s pro-manufacturing provisions.
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What should be done: Manufacturers everywhere are struggling under the weight of both these provisions’ expiration and needless, out-of-date government requirements, Hutter went on. To fix these problems, he said, Congress should:

• Unwind “outdated chemicals reporting requirements that force us to look backward in time and deep into our supply chain”;
• Stop unnecessary permitting roadblocks by the Environmental Protection Agency at the state and local levels;
• Roll back expensive energy and labor mandates;
• Undertake “comprehensive permitting reform”; and
• the pro-manufacturing tax provisions scheduled to sunset at the end of 2025 and bring back already expired provisions that boosted the sector and the U.S. economy as a whole.

The final say: “Congress has a critical opportunity to right-size the regulatory landscape, put an end to permitting delays and protect manufacturers from devastating tax increases,” Hutter concluded. “I encourage you to seize [it] … because when manufacturing wins, America wins.”
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By deciding to imposition of tariffs he announced last weekend on Mexico and Canada, President Trump shows he’s hearing manufacturers “loud and clear,” the 17�Թ����� said yesterday.

What’s going on: Two days after signing executive orders under the International Emergency Economic Powers Act to add new levies on goods from Mexico, Canada and China, President Trump ��a one-month pause yesterday on the 25% tariff on Mexican goods and the 25% tariff on Canadian goods, including the 10% levy on energy products.

• President Trump, who had cited illegal immigration and the flow of illicit drugs into the U.S. as the impetus for the new tariffs, Mexican President Claudia Sheinbaum agreed Monday morning to “immediately supply” 10,000 Mexican National Guard troops to the border.
• The announcement about the tariffs on goods from Canada came following an afternoon phone call between President Trump and Canadian Prime Minister Justin Trudeau.
• The 10% additional tariff applying to products from China went into effect today.��In response, China announced retaliatory tariffs on certain goods imported from the U.S., as well as additional restrictions on critical minerals exports to the U.S. (, subscription).

Staying competitive: “This decision by President Trump reflects��his swift move to keep his campaign promises, balancing a��commitment��to aggressive border enforcement��with the need to keep manufacturing in the United States competitive,” 17�Թ����� Executive Vice President Erin Streeter said.

• “The 17�Թ����� has worked closely with the administration, ensuring that the voices of manufacturers were heard loud and clear. Throughout the weekend, we engaged directly with senior officials, providing key data and real-world industry perspectives. Our efforts helped underscore the risks of broad-based tariffs and the importance of North American supply chains to manufacturing’s success.”
• 17�Թ����� President and CEO Jay Timmons reinforced President Trump’s and the manufacturing sector’s priorities in interviews Monday with and , as well as in a cited by the Wall Street Journal board.

Certainty needed: For manufacturing in the U.S. to thrive, “we need to bring costs down,” Timmons told ABC. “And if you don’t have that, or you have the uncertainty of what’s coming next, manufacturers are reluctant to invest in new plants and equipment and facilities. They’re reluctant to hire new workers … raise wages or increase benefits. … Once we get all this sorted out, I think it will be good news for manufacturers,” but the sooner that happens, the better, he concluded.

• Timmons also discussed President Trump’s landmark 2020 U.S.–Mexico–Canada Agreement, which he said provided manufacturers with the certainty the sector requires.
• “The certainty that was provided by a negotiated and accepted trade agreement by the three countries enabled manufacturers to make investment decisions,” Timmons told CNBC. “Now we have more uncertainty about what’s ahead … but we assume that there is a rationale for this.”

Key statistics: The USMCA was vital in shifting key imports away from China to North America. According to a new 17�Թ����� :

• Fully one-third of all U.S. manufacturing inputs come from Canada and Mexico;
• Some 70% of what we import from Canada and nearly 60% of imports from Mexico are capital equipment, industrial supplies and automotive parts that go into further manufacturing in the U.S.; and
• The value of U.S. imports of manufacturing materials from North America is now three times greater than the value of materials coming from China.

The bottom line: “We appreciate the administration’s continued willingness to receive our data and manufacturing stories,” Streeter went on. “We will continue working with policymakers to ensure that future decisions support both national security and manufacturing’s success.”

17�Թ����� in the news: The 17�Թ�����’s advocacy received widespread attention in the media, with , , ��(subscription), , ��(subscription),����and a (subscription) article all��highlighting its statements on the impact of tariffs on manufacturers.

• Its positions were also mentioned on��“,”��,�� ��and��

For a stronger, more competitive America, Congress must make permanent the pro-growth tax provisions from President Trump’s 2017 Tax Cuts and Jobs Act, 17�Թ����� President and CEO Jay Timmons and House Ways and Means Committee Chairman Jason Smith (R-MO) wrote in a recent op-ed for the .

What’s going on: “The choice is clear. Congress must deliver the results the American people voted for on Election Day by extending and expanding Trump’s pro-growth tax policies, which have worked so well.”

• The reforms allowed manufacturers “to hire, expand and invest in their communities” at historic rates, with a particularly positive effect on small and medium-sized businesses.
• Georgia-based , which produces machinery used in tubular parts and coaxial cable fabrication, would not have been able to expand its workforce, raise employee pay or purchase critical technology had it not been for the TCJA, as Winton CEO and Co-Owner and 17�Թ����� board member Lisa Winton told Congress in 2023.
• Austin Ramirez, president and CEO of hydraulic and electromechanical control systems maker in Wisconsin and 17�Թ����� Executive Committee member, told legislators that tax reform allowed his family-owned company “to create jobs, expand research and development, compete globally and invest in its future, including the most significant renovation of his business in 70 years,” Timmons and Chairman Smith wrote.

What’s at stake: “Key provisions of the 2017 Trump tax reforms have already expired, and many more are set to lapse later this year,” Timmons and Chairman Smith continued.

• “Without swift action, manufacturers will miss out on tax incentives for research and development and equipment purchases, while small businesses and family-owned manufacturers will see their tax rate double to as high as 43.4%—all at a time when global competition is intensifying.”

According to a recent 17�Թ����� cited in the op-ed, if Congress fails to preserve tax reform by the end of this year:

• Nearly 6 million U.S. jobs—more than 1 million of them in manufacturing—will be lost; and
• America will lose some $1.1 trillion in GDP and $540 billion in wages.

What must be done: Congress must act now to restore the pro-manufacturing tax provisions that have already sunset and make permanent those that are scheduled to expire, Timmons and Chairman Smith concluded.

• “With Trump leading the charge, it is time for Congress to deliver, protect these reforms and set American workers up for success in 2025 and beyond. Together, we can ensure the next chapter in America’s story is one of growth, opportunity and strength.”

On Feb. 1, President Donald Trump imposed 25% tariffs on products from Canada with lower 10% on energy products, 25% tariffs on products from Mexico and an additional 10% on products from the People’s Republic of China.

17�Թ����� Vice President of International Policy Andrea Durkin and her team break down the actions for manufacturers:

Executive orders impose tariffs on Canada, China and Mexico:��On Feb. 1, President Trump, through three separate executive orders, declared a national emergency and invoked the International Emergency Economic Powers Act to apply ad valorem tariffs on products from Canada, Mexico and China, citing the sustained influx of illicit opioids and other drugs.

• :“Imposing Duties to Address the Flow of Illicit Drugs Across Our Northern Border”
• : “Imposing Duties to Address the Synthetic Opioid Supply Chain in the People’s Republic of China”
• : “Imposing Duties to Address the Situation at the Southern Border”

How tariffs will apply:

• For products from Canada:
• A 25% tariff will be applied in addition to any already applicable duties, fees or charges.
• A 10% tariff will be applied to “energy or energy resources” defined as crude oil, natural gas, lease condensates, natural gas liquids, refined petroleum products, uranium, coal, biofuels, geothermal heat, hydropower and��.
• For products from China:
  • A 10% tariff will be applied in addition to any already applicable duties, fees or charges.
  • For products from Mexico:
  • A 25% tariff will be applied in addition to any already applicable duties, fees or charges.
• No duty drawback:No drawback shall be available with respect to the duties imposed pursuant to these orders.
• De minimis: Duty-free��de minimis��treatment will be suspended.

Timing of the tariffs:

• Tariffs will apply from Feb. 4, 2025.
• Tariffs will not apply to goods loaded onto a vessel or in transit before 12:01 a.m. Feb. 1 with certification to U.S. Customs.

Duration of tariffs:��The tariffs will remain in place until the president determines that the governments of Canada, Mexico and/or China have taken “sufficient action to alleviate the crisis,” including through cooperative enforcement actions.

A retaliation clause:��The president may increase or expand in scope the tariffs imposed under these executive orders if the governments of Canada, Mexico and/or China impose retaliatory tariffs.

Reports to Congress:��The Secretary of Homeland Security, in coordination with the Secretary of the Treasury and other agencies, will submit recurring and final reports to Congress on the state of the national emergency under these orders.

What’s next: The 17�Թ����� issued a statement in response, and the 17�Թ����� trade team is analyzing the impact on manufacturers and will continue to engage policymakers on these sweeping trade actions.

How USMCA Boosted North American Supply Chains

Washington, D.C. – 17�Թ����� President and CEO Jay Timmons released the following statement on the executive orders imposing significant tariffs on imports from Canada, Mexico and China.

“Manufacturers understand the need to deal with any sort of crisis that involves illicit drugs crossing our border, and we hope the three countries can come together quickly to confront this challenge.

“At the same time, protecting manufacturing gains that have come from our strong North American partnership is vital. The success of President Trump’s landmark trade agreement, the United States-Mexico-Canada Agreement, has strengthened North American supply chains and bolstered economic power across the region, boosting jobs, wages and investments here in the United States.

“Thanks to this agreement, of critical U.S. manufacturing inputs now come from Canada or Mexico, rather than from competitors like China that often engage in unfair trade practices.

“However, with essential tax reforms left on the cutting room floor by the last Congress and the Biden administration, manufacturers are already facing mounting cost pressures. A 25% tariff on Canada and Mexico threatens to upend the very supply chains that have made U.S. manufacturing more competitive globally. The ripple effects will be severe, particularly for small and medium-sized manufacturers that lack the flexibility and capital to rapidly find alternative suppliers or absorb skyrocketing energy costs. These businesses—employing millions of American workers—will face significant disruptions. Ultimately, manufacturers will bear the brunt of these tariffs, undermining our ability to sell our products at a competitive price and putting American jobs at risk.

“We stand ready to work with President Trump to ensure a trade strategy that reinforces American strength—holding bad actors accountable while preserving the gains of the successful USMCA and advancing policies that sustain manufacturing growth here at home.”

-17�Թ�����-

The 17�Թ����� 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 17�Թ����� 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 17�Թ����� or to follow us on Twitter and Facebook, please visit��.

Weeks ahead of the inauguration, manufacturers provided the Trump administration with a list of several dozen regulations that should be reconsidered or rescinded to protect manufacturers’ competitiveness. This list covered everything from power plant regulations to employment rules, and some of its recommendations have already been enacted—such as the revocation of the ban on liquefied natural gas exports, which President Trump ordered on Monday.

But signing executive orders is not enough to right-size the regulatory state and remove restrictions on manufacturers’ growth—in general, final agency rules can only be amended through notice-and-comment rulemaking. What does the administration need to do to make this rollback stick?

17�Թ����� Chief Legal Officer Linda Kelly spoke to us about the policy and legal landscape that the new administration will have to navigate.

The long term: “Manufacturers need these regulatory changes to withstand the test of time—and legal scrutiny,” said Kelly. Any changes to regulatory policy will be met with legal challenges, which will delay their benefits for manufacturers.

• The new administration needs to do everything by the book and carefully follow recent pronouncements in administrative law, or its policies will not survive, Kelly warned.
• Conducting robust cost-benefit analysis, soliciting public input and tying its actions to congressional mandates will all help the administration make its policies stick, she advised.

The legal hurdles: The big developments overshadowing this round of regulatory reform include the Supreme Court’s Loper Bright decision, which freed courts from deferring to agencies’ interpretations of statutes. Instead, the courts themselves must decide on the “best reading of a statute.”

• When the Trump administration faces judges skeptical of regulatory rollbacks and no longer obligated to defer to agency interpretation, they must come armed with well-reasoned justifications supported by data and informed by the expertise of the regulated public.
• In many cases, the 17�Թ����� can provide this expertise and crucial data through the rulemaking process, and the 17�Թ����� Legal Center can help defend pro-manufacturing policies by intervening in litigation and filing amicus briefs.

Agencies in need: Another new requirement for the administration emerged from Ohio v. EPA, which strengthened the requirement that agencies meaningfully respond to objections to proposed rules raised during public comment periods.

• Here again, manufacturers will play a crucial role, said Kelly, offering agencies the evidence they need to support their policymaking.

The last word: “The Trump administration has to do its homework on the front end,” said Kelly, to survive the inevitable legal challenge that will follow its regulatory changes. “Manufacturers and the 17�Թ����� Legal Center stand ready to help create a court-durable regulatory environment that enables innovation and prosperity.”

In his first few hours in office, President Trump outlined the broad contours of his “.” Among the primary objectives: to “reduce dependence on foreign nations for critical supply chains,” “promote investment and productivity” and “enhance our [n]ation’s industrial and technological advantages.”

Key takeaways: The president did not announce new tariffs. His executive order instructs key agencies to begin looking at underlying concerns about unfair or unbalanced trade, specific concerns regarding trade with China and matters related to economic security. The findings could form the basis for the administration’s choice of remedy, potentially leading to more tariffs and other policy measures.

• President Trump “is wasting no time in taking action to strengthen America’s hand on trade, and manufacturers appreciate his focus on combatting unfair practices that hurt American workers,” 17�Թ����� President and CEO Jay Timmons on Tuesday. 

What comes next:  Three comprehensive reports are due by agencies to the President by April 1. 17�Թ����� to be investigated include:

• Persistent trade deficits;
• Unfair trade practices;
• Currency manipulation;
• Importation of counterfeit products and contraband;
• China’s compliance with the “Phase One” deal; and
• Review of the U.S. export control system.

Tariffs on Canada, Mexico and China: The EO tasks the Commerce Department with assessing unlawful migration and fentanyl flows from Canada, Mexico and China. The findings are also due April 1.

• Prior to that date, President Trump could issue a separate EO using international emergency powers. This would enable him to impose tariffs sooner.

Building on past success: The president cited the China Phase One deal, the ��and Section 232 tariffs as successful elements of his first-term agenda.

Expect USMCA review to kick into gear: The EO also instructs the United States Trade Representative to begin its public consultation processes in preparation for the six-year review of the USMCA and to assess the impacts of U.S. participation in the agreement.

The 17�Թ�����’s view: Speaking to from the Canadian Embassy on Inauguration Day, 17�Թ����� President and CEO Jay Timmons said:

• “We are in a global economy, and we want to be able to produce as much as we can. We need the entire continent of North America to be able to do exactly that.”
• “The United States, Canada and Mexico—because of the USMCA that was negotiated and implemented a few years ago—has the opportunity to take on together some actions to thwart problematic, market-distorting practices that are coming out of other countries, specifically China.”

Related news: In , the president pulled the U.S. out of the Organization for Economic Co-operation and Development global tax deal on the grounds that the agreement “allows extraterritorial jurisdiction over American income but also limits our nation’s ability to enact tax policies that serve the interests of American businesses and workers.”