The National Association of Manufacturers announced June 4 a proposal designed to give domestic manufacturers “a runway of predictable access” to essential manufacturing inputs that will allow them to “invest, create jobs, grow, and compete” while the Trump administration pursues “reciprocal” trade deals.
“Even if the manufacturing industry were operating at full capacity,” a NAM announcement said, “the industry could produce only 84% of the inputs necessary to meet demand. That means that at least 16% of manufacturing inputs must be imported to grow domestic manufacturing.” However, “tariffs on critical manufacturing inputs dramatically increase the cost of these must-use, must-import inputs, thus hindering the very investment needed to grow manufacturing jobs in the U.S.”
NAM is therefore calling on the White House to direct the Treasury Department to issue general licenses allowing manufacturers to import essential inputs duty-free. This would include raw materials, machinery, components, and research and development inputs not readily available domestically. Eligible manufacturers would self-certify under defined criteria and be subject to post-entry verification by U.S. Customs and Border Protection.
Further, NAM said, to offset tariff costs incurred on must-import inputs, the administration should provide a rebate for new or expanded manufacturing facilities, technological upgrades and equipment modernization, the hiring of full-time manufacturing employees, and domestic R&D expenditures.
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