02/12/2025

GMA Advocacy Update

Source: National Association of Manufacturers, February 5, 2025

Two days after signing three separate executive orders under the International Emergency Economic Powers Act to add new levies on goods from Mexico, Canada and China, President Trump announced a one-month pause on the 25% tariff on Mexican goods and the 25% tariff on Canadian goods, including the 10% levy on energy products. By deciding to pause the imposition of tariffs he announced last weekend on Mexico and Canada, President Trump shows he’s hearing manufacturers “loud and clear”.

Thank you to those who joined us for our member briefing on tariffs yesterday afternoon and Friday. The NAM is continuing to work closely with the Trump administration and other stakeholders ensuring the voice of the manufacturing industry is heard. Our Association Partners will be integral in amplifying the call for reduced uncertainty on this issue that was provided by the 2020 U.S.-Mexico-Canada Agreement (USMCA).

Key Statistics

The USMCA was vital in shifting key imports away from China to North America. According to a new NAM fact sheet:

• 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..
• 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.

According to the White House FAQ, the provisions of USMCA do not override valid U.S. law, which includes the International Emergency Economic Powers Act (IEEPA). USMCA also contains a national security exception allowing a party to derogate from its obligations under the agreement in order to protect its national security interests.

Resources

We encourage you to use this one-pager from the NAM highlighting how a 25% tariff on Canada and Mexico would add an estimated $144 billion a year to the cost of manufacturing in the U.S.

Media Activity

NAM and Association Partners have been active in the media, ensuring our positions are widely known among policymakers and influencers.

• NAM President and CEO Jay Timmons reinforced the manufacturing sector’s priorities in interviews with CNBC and ABC, as well as in a statement cited by the Wall Street Journal editorial board.
• The NAM’s advocacy received widespread attention in the media, with Fox Business, CNBC, Bloomberg (subscription), CNN, The New York Times (subscription), Punchbowl News and a Wall Street Journal (subscription) article all highlighting its statements on the impact of tariffs on manufacturers.
• Its positions were also mentioned on “ Bloomberg Surveillance,” CTV News Channel, MSNBC’s “Inside with Jen Psaki” and MSNBC’s “Morning Joe.”

Next Steps

We appreciate the administration’s willingness to receive data and manufacturing stories. We will continue working with our association partners to ensure that future decisions support both national security and manufacturing’s success.