U.S. manufacturers push for 'investment accelerator program'
The National Association of Manufacturers has unveiled the U.S. Manufacturing Investment Accelerator Program, a plan to allow manufacturers to avoid some of President Trump’s tariffs.
“President Trump’s administration is prioritizing policies that spur more investment and innovation in manufacturing in the U.S.—a goal that manufacturers share. As the administration pursues reciprocal trade deals, the NAM is seeking zero-for-zero tariff outcomes with our top export markets,” said NAM President and CEO Jay Timmons. “As these deals materialize, manufacturers need a runway of predictable access to the critical inputs necessary to make things in America, empowering them to invest, create jobs, grow and compete. The U.S. Manufacturing Investment Accelerator Program is a manufacturing ‘speed pass’ that will unlock long-term investments needed to maintain America’s edge in the global economy.”
According to NAM, even if the manufacturing industry were operating at full capacity—every machine turned on, every job filled—the industry could produce just 84% of the inputs necessary to meet demand. That means that at least 16% of manufacturing inputs must be imported to grow domestic manufacturing.
Tariffs on vital 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. These inputs are raw materials, critical minerals and energy resources—as well as some equipment and machinery the industry needs to install on the shop floor to enable U.S. production.
Timmons added: “The U.S. Manufacturing Investment Accelerator Program offers a way to bring in essential inputs that aren’t produced in the U.S. without added cost burdens—and it rewards manufacturers that expand production, invest in new equipment and create jobs here at home. Every dollar of imported manufacturing inputs has a multiplier effect, generating $1.40 on average in manufacturing output in the U.S. This proposal is a practical, pro-growth approach that supports President Trump’s trade priorities and turns his goal to strengthen manufacturing in America for the long term into reality.”
Thoughts on the ‘speed pass?’
What's your opinion on the "accelerator program" proposal from the National Association of Manufacturers? Share with us at [email protected].
The NAM offers a brief rundown of the accelerator program it's envisioning:
A Manufacturing Speed Pass
- To reduce the cost burdens that hinder domestic manufacturing investment, the administration should utilize existing authorities to issue general licenses—effectively a manufacturing speed pass—that allow manufacturers to import essential inputs duty-free.
- This includes raw materials, machinery, components and R&D 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.
- The Treasury Department, which has experience with general licensing frameworks, would be tasked with implementation.
Manufacturing Investment Accelerator Rebates
The administration should provide a rebate to offset tariff costs incurred on must-import inputs when manufacturers are investing or expanding manufacturing in the U.S.
Rebates would apply to:
- New or expanded manufacturing facilities.
- Technological upgrades and equipment modernization.
- Hiring of full-time manufacturing employees.
- Domestic R&D expenditures.
Additionally, to ensure the program remains responsive and effective in generating manufacturing expansion in the U.S., the NAM recommends convening a Quarterly Manufacturing Dialogue between manufacturers and key federal agencies, including U.S. Treasury, the Office of the U.S. Trade Representative, the Department of Commerce and the Small Business Administration, among others. This ongoing forum would allow for real-time feedback, operational updates and continuous improvement of the Accelerator Program to better serve manufacturers in America.
