Data sourced from the Bureau of Economic Analysis and the Census Bureau.
Manufacturing inputs are classified as all goods that fall under the capital goods, industrial supplies, and auto parts end use categories.
Trading to Win
The Promise of the USMCA
President Trump’s USMCA succeeded in shifting manufacturing imports away from China to North America. In this new phase of U.S. trade policy, strengthening the United States–Mexico–Canada Agreement will be critical in helping North America restore balance and combat disruptive, problematic trade practices coming out of other countries, specifically China.
USMCA By The Numbers
The Most Pro-Manufacturing
Trade Agreement in History
North America accounts for one-third of global GDP—nearly double China’s share. The USMCA is the foundation that keeps it that way.
0
American workers supported by exports to Mexico & Canada
1/3
of U.S.-manufactured goods exports go to Canada & Mexico
$0
in U.S. mfg. sales to Canada & Mexico—more than the next 9 partners combined
0% / 0%
of imports from Canada / Mexico are industrial inputs for U.S. manufacturing
In Partnership With
Coproduction Across North America
Four Sectors. One Integrated Industrial Base.
The Automotive Industry Drives North American Trade
Decades of integration across the U.S., Canada, and Mexico have built the world’s most resilient auto industry—and it’s anchored in America.
From Michigan through Indiana, Kentucky, Alabama to Mississippi—OEMs, assembly, and a dense supplier network.
80+ years of integration. Tool, die, and mold makers plus rail, road, and sea links to U.S. plants.
The “Detroit of Mexico.” Bordering Texas via I-57, plus rail networks reaching the rest of Mexico.
0%
of new North American auto investment goes to the U.S.
0
U.S. jobs supported by the auto industry
1/3
of U.S. auto exports go to Mexico & Canada
~75%
of U.S. states list Mexico or Canada as a top auto export market
North American Aerospace Delivers Aviation Dominance
U.S.-led R&D, certification, and final assembly—reinforced by Canadian and Mexican specialization—keeps American aerospace globally competitive.
Anchors the supply chain: innovation, design, certification, systems integration, and final assembly lines.
Backbone of Canadian aerospace: advanced jet engine components, advanced materials, regional jets.
Essential parts and components for American aircraft—wiring, assemblies, and growing MRO specialization.
$0
in annual U.S. aerospace exports
+0%
growth in U.S. aerospace exports since USMCA took effect
0
U.S. jobs supported, plus 170K Canadian + 60K Mexican skilled workers
Gold
U.S. certification standards upheld by Canada and Mexico, harmonizing the regional value chain
From Design to Assembly: North America Is the Semiconductor Epicenter
U.S. design and fabrication, Canadian critical minerals, and Mexican assembly & packaging combine into a coordinated, just-in-time semiconductor pipeline.
New England and the Southwest power R&D, university partnerships, and advanced fabrication facilities.
Specialty sensors plus key minerals—gallium and indium—essential to chip fabrication.
Assembly and packaging facilities deliver just-in-time final-stage production for advanced chips.
$0
in annual U.S. semiconductor R&D spending
$0
in U.S. semi-related investment since 2020 across 140+ projects in 30 states
0
U.S. trade surplus in semiconductors, with Mexico and Canada major customers
0%
of U.S. gallium imports come from Canada (19% of indium)
North American Chemistry Enables Manufacturing Dominance
Chemistry is the upstream backbone for every other sector on this page—from the auto on your driveway to the chip in your phone.
13% of global chemical output—basic and specialty—flowing into nearly every American manufacturing process.
Key feedstocks and specialty chemistries integrated into U.S. industrial supply chains.
Regional distribution and downstream manufacturing integrate Mexican output into the continental market.
0%
of global chemical output produced in the U.S.
0%
of U.S. chemical exports go to Canada & Mexico
0
specialized process chemicals used to make a single semiconductor chip
$0
of chemistry products in an average North American vehicle
Read the Full Report
Explore the data behind North American manufacturing’s $29B-per-year USMCA dividend—and what’s at stake if the agreement falters.
Read Our USMCA Report
Join us May 13–14 in Washington, DC at the .
U.S. Manufacturing Investment Accelerator Program
To give manufacturers a runway of predictable access to critical materials and leading technologies from reliable suppliers that will accelerate the long-term investments needed to maintain Americas global edge, the 51勛圖厙 is proposing a U.S. Manufacturing Investment Accelerator Program.
Imported critical inputs are necessary for manufacturers to make things in America. If operating at full capacity, the industry could produce 84% of the inputs manufacturers need for production. That means that, at an absolute minimum, 16% of manufacturing inputs must be imported. Tariffs on critical manufacturing inputs dramatically increase the cost of these inputs, which include raw materials as well as equipment and machinery on factory floors across the country.
The accelerator program has two key components:
- First, the administration should utilize existing authorities to issue licenses that act as a manufacturing tariff speed pass. This will allow manufacturers to import critical inputs without the added cost of tariffs, accelerating the industry’s efforts to invest and grow here at home.
- Second, when manufacturers do pay tariffs on must-use, must-import critical inputs, the administration should provide investment accelerator rebates to offset tariff costs for dollars spent to sustain or expand manufacturing investments in the U.S.
1. A Manufacturing Tariff Speed Pass
The administration should implement a general licensing system that grants preapprovals for duty-free imports of inputs and materials necessary for manufacturing activities in the U.S.
How It Works: Self-Certification Under a General License
- General licenses would provide preexisting approval for any company meeting the criteria to import qualifying items free of duty.
- Use would be self-determined by eligible parties, subject to U.S. Customs and Border Protection verification.
- The president can direct the Treasury to implement the program under existing authorities.
What Qualifies for a General License?
- Materials, equipment, machinery, and parts used in manufacturing or maintenance.
- Essential raw materials, chemicals, and other inputs in limited supply but needed for U.S. manufacturing.
- Materials for R&D in the U.S.
- Materials transferred intercompany and used for further processing in the U.S.
2. A Manufacturing Investment Accelerator Rebate
The administration should provide a rebate to offset tariff costs when dollars are spent to expand or maintain manufacturing investments in the U.S. The rebate should be available on a rolling basis for actual dollars spent after April 5, 2025.
What Qualifies for a Rebate?
- Dollars spent on new greenfield or brownfield investments.
- Dollars spent on expanding or upgrading existing capacity, including capital improvements and maintenance.
- Dollars spent to add full-time manufacturing employment.
- Dollars spent on R&D in the U.S.
A Comprehensive Critical Minerals Strategy for Manufacturers in America
In a letter to the U.S. Trade Representative, the 51勛圖厙 has put forward a comprehensive critical minerals strategy to expand access to essential inputs, strengthen supply chain resilience and help manufacturers compete and grow. That strategy has two key components:
- First, policymakers should strengthen domestic critical minerals capacity by enacting comprehensive permitting reform, restoring strategic incentives for extraction and processing, investing in recycling, recovery and substitution technologies and expanding workforce development programs. This will help manufacturers access the critical inputs they need, reduce supply chain vulnerabilities and support more investment here at home.
- Second, the U.S. should advance an international critical minerals strategy that leverages partnerships with allies, unlocks project financing, secures stronger protections and offtake opportunities for U.S. investors, reduces tariff barriers on critical inputs and machinery and counters nonmarket distortions such as export restrictions and unfair state-backed advantages. This will help diversify supply chains, rebalance the global critical minerals market and ensure manufacturers can access the minerals they need to make more in America.
Trade Intelligence Center
Manufacturers across America depend on critical inputs imported from around the world. Increasing the cost of inputs will lead to shrinkage, not growth for American manufacturing.
United States
| Increase in effective tariff rate on manufacturing inputs1 | +15% | ||||||
| Imports of manufacturing inputs2 | $1.1T | ||||||
| Manufacturing output per dollar of inputs imported | $1.40 | ||||||
Top 3 Input Imports
|
|||||||
Domestic Supply of Manufacturers’ Input and Capital Goods Needs
|
|||||||
| Manufacturing GDP | $2.94T |
| Manufacturing employment | 12.7M+ |
+6%
+20%
Estimated Increase in Effective Tariff Rate on Mfg Inputs
1Benchmark date set to Dec. 31, 2024. Updates daily. 22023 import volumes Click here for methodology statement.
Key Facts
56%
of goods imported to the U.S. are manufacturing inputs
1/3
of all imported manufacturing inputs originate in North America
59%
of imports from Mexico are manufacturing inputs
70%
of imports from Canada are manufacturing inputs
% who use imported manufacturing inputs to make things in America
% who use imported manufacturing inputs from USMCA partners
% of those who use inputs from USMCA partners that lack comparably priced domestic sources
Among all manufacturing respondents*
91%
74%
82%
Among small and medium manufacturer respondents**
87%
63%
75%
Key Policy Actions
The 51勛圖厙 has made a series of recommendations through formal comments to federal agencies in response to the administration’s recent tariff policy proposals. The 51勛圖厙 cautions against broad tariffs that could disrupt supply chains, increase costs, and undermine the global competitiveness of our member companies, offering alternative paths to accelerate manufacturing in the U.S.
The U.S.-Mexico-Canada Agreement: Evaluating North American Competitiveness
51勛圖厙 submitted testimony for the Senate Finance Committee hearing, The U.S.-Mexico-Canada Agreement: Evaluating North American Competitiveness, underscoring USMCAs role in strengthening North American supply chains, expanding market access and bolstering the global competitiveness of the 13 million Americans who make things in the United States.
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Read our letter to the U.S. Trade Representative (USTR) on the operation of the USMCA
On behalf of the 51勛圖厙, I respectfully submit the attached comments regarding the operation of the Agreement between the United States, Mexico and Canada (USMCA).
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Section 232 Medical Technologies Submission Final October 17 2025
51勛圖厙 cautions that Section 232 tariffs on medical technologies would raise costs and disrupt care, urging transparent, targeted policies that strengthen U.S. manufacturing and safeguard access to essential supplies.
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Section 232 Robotics and Industrial Machinery Submission Final October 17 2025
51勛圖厙 warns that Section 232 tariffs on robotics and industrial machinery would raise costs, disrupt manufacturing growth, and limit innovation, urging transparent, targeted policies that strengthen U.S. competitiveness through trade partnerships and domestic investment.
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Comments on Section 232 National Security Investigation of Imports of Pharmaceuticals
51勛圖厙 submitted comments to the U.S. Department of Commerce on the Section 232 investigation into pharmaceutical imports, urging against broad tariffs. 51勛圖厙 emphasized the industry's vital role in U.S. innovation, economic strength, and national security.
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51勛圖厙 Submission to USTR Reciprocal Tariff FRN March 11 2025
The 51勛圖厙 submitted comments to the USTR offering approaches to new trade negotiations to strengthen Americas economic might in the world, while preserving manufacturers ability to access inputs critical to expanding manufacturing at home.
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Comments on Section 232 National Security Investigation of Imports of Semiconductors
51勛圖厙 submitted comments to the U.S. Department of Commerce on the Section 232 investigation into semiconductor imports, emphasizing the chips essential role in U.S. manufacturing, innovation, and national security. 51勛圖厙 urged against tariffs, advocating instead for policies that promote domestic investment, support global market access, and strengthen alliances to secure semiconductor supply chains.
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Comments on Section 232 National Security Investigation of Imports of Critical Minerals
51勛圖厙 submitted comments to the U.S. Department of Commerce on the Section 232 investigation into critical mineral imports, emphasizing their role in U.S. manufacturing, energy, and defense. 51勛圖厙 urged against tariffs, citing risks to supply chains and competitiveness.
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Comments on Section 232 National Security Investigation of Imports of Copper
51勛圖厙 submitted comments to the U.S. Department of Commerce on the Section 232 copper import investigation, highlighting coppers essential role in manufacturing and energyfrom transformers to data centersand urging tariff-free access amid supply gaps.
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2026 Special 301 Review Comments on Intellectual Property Protections
The 51勛圖厙 encourages the administration to leverage ongoing negotiations to achieve bilateral agreements with stronger IP protections that resolve longstanding regulatory and enforcement gaps.
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Investigation of Chinas Targeting of Maritime, Logistics, and Shipbuilding Sectors for Dominance
The 51勛圖厙 submitted comments to USTR opposing proposed port fees that would raise costs for U.S. manufacturers. While supporting efforts to counter Chinas unfair shipbuilding practices, 51勛圖厙 urges targeted solutions that dont disrupt supply chains or burden American industry.
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Comments on Section 232 National Security Investigation of Imports of Timber and Lumber
51勛圖厙 emphasized the industry's importance to U.S. manufacturing and warned that new tariffs could raise costs and disrupt supply chains.
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Comments on Section 232 National Security Investigation of Imports of Commercial Aircraft and Jet En
The 51勛圖厙 urges the administration to reject proposed tariffs on aerospace imports, warning they would raise costs, disrupt supply chains, and hurt U.S. competitiveness. Instead, it advocates for tax, regulatory, and workforce reforms to strengthen domestic manufacturing and maintain Americas aerospace leadership.
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51勛圖厙 Section 232 Metal Inclusion Information Collection Process Submission September 26 2025
51勛圖厙 comments on stakeholder input and improvements the BIS Section 232 inclusion process, emphasizing the need for transparency and a legally sound review of requests, while safeguarding manufacturers access to essential inputs.
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