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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.”

President Trump has frequently emphasized his intention to remove burdensome regulations that weigh on manufacturers and other businesses. In his first day on the job, he took steps to set this rollback in motion. Here’s what manufacturers need to know.

Regulatory freeze: As most presidents do when they take office, President Trump a freeze on new and in-process regulations.

• The freeze pauses any rules from the outgoing Biden administration that have been proposed but not finalized, finalized but not sent to the Federal Register or sent to the Federal Register but not published.
• The executive order also recommends that agencies delay the effective dates of any published-but-not-yet-effective Biden rules by at least 60 days, giving the administration time to decide whether to rescind or revise the rules.

Reinstating policies: President Trump also rescinded several of President Biden’s executive orders, reinstating policies that had been in place during Trump’s first term.

• Most prominently, President Trump undid President Biden’s rescission of his “one-in-two-out” policy, setting the stage for more reworked and repealed regulations than new rules in his second term.
• He also rescinded a Biden order that had reduced agencies’ obligations to seek public input on guidance documents, which agencies use to interpret regulations and give direction to regulated parties.

Establishing DOGE: President Trump also the Department of Government Efficiency, which will “be dedicated to advancing the president’s 18-month DOGE agenda,” including modernizing technology and software, increasing efficiency and reducing the size of government.

• DOGE will play a role in implementing the president’s new hiring freeze: the new organization will have 90 days to work with the Office of Management and Budget and the Office of Personnel Management on a plan to reduce the size of the federal government’s workforce while the hiring freeze is ongoing.

The 17�Թ����� says: “The regulatory burden facing manufacturers is sapping growth, costing the U.S. economy more than $3 trillion annually, with manufacturers shouldering��$350 billion in annual regulatory costs. Small manufacturers—the backbone of our supply chain—are especially hard hit, with costs exceeding $50,000 per employee per year, or about $1 million for a 20-person shop,” said 17�Թ����� Managing Vice President of Policy Chris Netram.

• “The 17�Թ����� has already provided the new administration with to ease the regulatory burden on our industry.”
• “The 17�Թ����� looks forward to working with the Administration to right-size the regulatory burden, providing smart, tailored rules that ensure the United States remains the best place in the world to build and create, fueling economic growth and strengthening our global competitiveness.”

President Trump’s flurry of executive orders also included major changes to immigration policy.

National emergency: President Trump declared a at the southern border, aiming to bolster border security and deter illegal entry into the country. Specific actions include:

• Building , both temporary and permanent;
• Directing the Department of Homeland Security to deter illegal immigration and detain illegal immigrants until they can be removed swiftly from the country;
• Reinstating the “Remain in Mexico” policy; and
• Terminating the CBP One app, which is used to schedule border appointments and facilitate entry into the U.S.

Forceful intervention: directs the military to protect the sovereignty, territorial integrity and security of the U.S. and its borders.

• President Trump also defined the situation at the southern border as an “invasion,” effectively suspending the ability of individuals to apply for asylum.

Other actions: President Trump reinstated his 2017 border security EO that withholds federal funds from sanctuary cities while encouraging collaboration between federal and state agencies, steps up deportations and directs U.S. Immigration and Customs Enforcement to hire 10,000 immigration officers. He also restored a 2017 EO providing for “enhanced vetting” of refugees.

• President Trump also issued an EO on birthright citizenship, setting up legal challenges over his administration’s interpretation of the 14th Amendment.

The 17�Թ����� says: “President Trump is right to make the border a first priority,” said 17�Թ����� Managing Vice President of Policy Chris Netram. “Control of our borders is a national security imperative that provides certainty about the individuals in our country and ensures the rule of law is upheld.”

• “Even as we secure our borders, we must ensure that America remains a beacon of opportunity and innovation. Manufacturers welcome the opportunity to work with the Trump administration and Congress to fix our broken immigration system. America deserves a modern, well-functioning system for welcoming new people to the United States that helps drive our economy forward, meets our nation’s workforce needs and ensures that the United States remains the most innovative and prosperous country on the planet.”

Among President Trump’s Day One executive orders were several manufacturing-crucial energy policies. We break them down here.
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Domestic energy resources: The president focused on unlocking the vast wealth of energy resources in the United States with the “” executive order, which:

• Orders a 30-day review by all federal departments and agencies of regulations and other barriers to the identification and development of domestic energy resources (particularly oil, coal, natural gas, biofuels, critical minerals, nuclear and hydropower);
• Directs the Department of Energy to resume liquefied natural gas export permits, ending the previous administration’s , and resumes review of LNG export applications;
• Rescinds the “” rulemaking, the Council on Environmental Quality’s revisions to the National Environmental Policy Act;
• Directs the reconsideration of the legality of regulating greenhouse gas emissions under the Clean Air Act;
• Revokes an executive order by President Carter that gives the CEQ authority to issue binding regulations to other agencies;
• Terminates state emissions waivers that limit the sale of gas-powered vehicles and begins the process of unwinding a suite of vehicle tailpipe regulations from the previous administration;
• Directs all agencies to provide the opportunity for public comment and rigorous, peer-reviewed scientific analysis for regulations; and
• Disbands the Interagency Working Group on the Social Cost of Greenhouse Gases.����

A “National Energy Emergency”: The president’s declaration of a “”:

• Authorizes the heads of every federal agency and department to use emergency powers to facilitate domestic energy development and production;
• Requires the Environmental Protection Agency and DOE to consider issuing emergency fuel waivers to allow for year-round sale of E15 fuel with a blend of 15% ethanol;
• Requires a report from the Army Corps of Engineers and other agencies on potential and planned permitting provisions to speed up energy infrastructure permitting under various legislative measures; and
• Requires agencies to use emergency authority under the Endangered Species Act to expedite energy project permitting consultations.������

Alaskan energy: The president’s “ ” order provides for the opening of Alaskan lands to energy exploration and development and promotes Alaskan LNG production.
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The Paris Agreement: “” withdraws the U.S. from the Paris Agreement, a 2015 climate change accord.
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Rescissions: “” includes revisions of multiple executive orders put in place by the previous administration, including “Tackling the Climate Crisis at Home and Abroad,” “Establishment of the Climate Change Support Office,” “Climate-Related Financial Risk” and “Strengthening American Leadership in Clean Cars and Trucks.”����
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Offshore wind: The “” blocks lease sales for offshore wind projects and pauses new approvals for leases, permits or loans for on- and offshore wind projects.������
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Our view: “Expanding domestic energy production drives innovation, creates jobs and powers the growth that keeps America at the forefront of the global economy,” 17�Թ����� President and CEO Jay Timmons in a social post Monday.

• “Energy is the lifeblood of our industry, and we look forward to working with President Trump to build our manufacturing nation.”������

Preserving the pro-manufacturing policies of the Tax Cuts and Jobs Act will “ensure that manufacturing remains the driving force of the American economy,” small manufacturer Courtney Silver Congress this week.
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What’s going on: Silver—president and owner of third-generation, family-owned precision machining business Ketchie and immediate past chair of the 17�Թ�����’s Small and Medium Manufacturers Group—testified Tuesday at a House Ways and Means Committee hearing on the necessity of preserving soon-to-expire tax reforms and reinstating provisions that have expired already.

• “Critical pro-growth provisions from tax reform have expired already, and more harmful changes are on the way at the end of this year,” she said. “This means that every member of this committee has the opportunity to take real action that supports manufacturing in America.”������

A critical moment: The stakes now are extremely high for manufacturing and the U.S. economy as a whole, she added, citing findings from an 17�Թ����� out this week showing that in the absence of congressional action to preserve pro-manufacturing tax policies:

• Nearly 6 million U.S. jobs (and more than 1 million manufacturing jobs) are at risk;
• American workers will lose more than $540 billion in wages; and
• U.S. GDP would fall by more than $1 trillion.

A recipe for success: The passage of tax reform led to a period of record business for Ketchie, which allowed the company to expand and reward its team members.

• “Over 2018 and 2019, we were able to invest more than $1 million into capital equipment and create new jobs within Ketchie,” Silver said. “We upgraded our security and our HVAC systems and invested in new technology on our shop floor. And most importantly, we provided raises and bonuses to all of our employees.”
• “Business boomed throughout our supply chain, and demand for our parts soared. Our typically organized shop floor was covered in pallets of materials to keep up with our customers’ orders.”

… and for stagnation: But that growth was stopped in its tracks in 2022, when measures from the TCJA began to expire. And more expirations are on the way.

• “The loss of the pass-through deduction, increased individual taxes and changes to the estate tax will hurt my ability to grow and create jobs,” Silver said.������

Ripple effect: What’s more, manufacturers rely on each other—so when one takes a hit, all their supply chain partners take it, too, Silver said.

• She told the committee that the software vendor Ketchie uses was “dramatically affected” by the 2022 expiration of first-year research-and-development expensing. “They have less ability to create new jobs, to innovate the product that I use every day to run my business,” Silver told the committee. “There’s a ripple effect.”��������

Complex work requires certainty: The manufacturing sector isn’t “me buying equipment, pressing a button and a widget comes out,” Silver continued. It is a complicated industry on which millions rely every day—and one whose players need consistent tax policies.

• “To take raw material and to transform it into a useful object that we all benefit from is extremely tough,” Silver went on.

The bottom line: “We need pro-growth tax policies that are permanent, that are consistent, that are predictable to help us be able to grow because our manufacturing supply chain in our country needs us,” Silver said.

A busy week: Silver also spoke at the 17�Թ�����’s Tuesday Capitol Hill announcing the release of the tax study.

More than just the manufacturing sector depends on the preservation of key provisions from the 2017 Tax Cuts and Jobs Act. In fact, the health of the entire U.S. economy relies on it.
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What’s going on: The 17�Թ�����, members of congressional leadership, the chairs of the House Ways and Means and Senate Finance Committees and manufacturing leaders came together at a Capitol Hill yesterday to announce the release of a new 17�Թ����� , which found that the American economy will face significant headwinds if Congress does not preserve pro-manufacturing tax policies. Specifically:

• Almost 6 million jobs will be put at risk;
• Approximately $540 billion in employee wages will be lost; and
• U.S. GDP will be reduced by $1.1 trillion.

A record of success: “We’re here today because we know what happens when policies empower manufacturers and their workers, and we know what happens when they don’t,” said 17�Թ����� President and CEO Jay Timmons, who was joined at the event by Johnson & Johnson Executive Vice President and Chief Technical Operations & Risk Officer and 17�Թ����� Board Chair Kathy Wengel, as well as leadership from Miles Fiberglass & Composites, Ketchie, Armstrong Industries, Smurfit Westrock, RCO Engineering and RCO Aerospace and Winton Machine Company. “When Congress passed and President Trump signed the Tax Cuts and Jobs Act law in 2017, it really wasn’t a victory just for manufacturers; it was a victory for the entire country.”

• Timmons mentioned the record job, wage and investment growth that followed tax reform’s passage, as well as the economic security achieved by families across the country.����

Too much at stake: “Now, as we know, the progress we’ve made is at stake,” Timmons continued. “And that’s why today we’re launching a landmark new study by the 17�Թ�����, together with EY, and rolling out a major ad campaign that quantifies what’s at stake for the American economy … if pro-manufacturing provisions … are allowed to expire.” ��
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People first: Courtney Silver, president and owner of North Carolina–based precision machining company Ketchie and immediate past chair of the 17�Թ�����’s Small and Medium Manufacturers Group, knows firsthand the devastation that can be wrought on a family-owned business when pro-growth tax provisions start expiring.

• “When the Tax Cuts and Jobs Act delivered for us, we invested in equipment, we invested in technology and most importantly, we invested in our people,” she told those at the press conference, adding that because of the reforms, Ketchie was able to give its entire workforce pay raises and quarterly bonuses in the years following tax reform’s enactment.
• “When [pro-growth policies] started expiring, it impacted Ketchie in a big way,” Silver went on. “These losses made it harder for us to do the work that matters to us. I have an empty spot on my shop floor held for a significant investment that the expiration of full expensing has made too costly to purchase.”

“Congress cannot delay”: “Failing to extend the pro-manufacturing tax policies Congress and President Trump provided in 2017 will destroy America’s competitive edge,” House Ways and Means Committee Chairman Jason Smith (R-MO) said.��“This study underscores the need to extend the Trump tax cuts this year as quickly as possible. Congress cannot delay.”
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Competitive edge: Tax reform gave the U.S. back its competitive edge, and to ensure we keep it, we need to reinstate expired provisions and prevent the expiration of measures due to end this year, House Majority Leader Steve Scalise (R-LA) said.

• Before tax reform, “we were getting our clocks cleaned by foreign countries because we had a 35% corporate [tax] rate, and the world average was 23%,” he said. “When you [asked], ‘How do we make America competitive again?’ everybody that works, everybody that creates jobs in America, said, ‘How about we get competitive in the tax code so we don’t lose jobs to foreign countries?’”
• Scalise added that congressional Republicans have a “very aggressive” timeline for restoring these tax provisions.

Strong economy, strong country: Senate Finance Committee Chairman (R-ID), whose remarks closed out the press conference, said “piling taxes upon taxes upon taxes” is no way to build a resilient, successful economy.

• “The way to make us strong is to build a strong, powerful economy, which we get with sensible, pro-growth tax reforms,” he concluded.