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The Defense Department will buy $400 million of MP Materials’ preferred stock, becoming its largest shareholder, the company announced today (). MP Materials owns the only rare earth mine operating in the U.S. today at Mountain Pass, California.

The background: “Rare earths are used in magnets that are key components in a range of military weapons systems including the F-35 warplane, drones and submarines, according to the Defense Department.”

• The U.S. imports almost all its rare earths, with China supplying about 70% of imports in 2023, according to the U.S. Geological Survey.
• Rare earth imports from China have become a point of dispute in U.S.–China trade relations.

Looking ahead: “MP Materials will build a second magnet manufacturing facility in the U.S. to serve defense and commercial customers with support from the Pentagon. The facility, whose location wasn’t disclosed, is expected to start commissioning in 2028 and will bring MP Materials rare earth magnet manufacturing capacity to 10,000 annual metric tons.”

• The Pentagon will buy all magnets produced by the new facility for a period of 10 years after it is built.

What they’re saying: “We understand that this partnership is ultimately on behalf of the taxpayers and our national security, and with that comes a great responsibility to get this done right,” MP Materials CEO James Litinsky told investors in a call this morning.

• “Securing America’s supply of rare earth materials and magnets is essential to our economic and national security.”

The 51�Թ��� says: “The 51�Թ��� has long led the charge for diversifying sources of critical minerals both to strengthen manufacturing supply chains and to safeguard its national security,” 51�Թ��� Director of Energy and Resources Policy Michael Davin said.

• “Investments like this one are an innovative way for the U.S. government to make good on its promise to manufacturers and the American people.”

Operators of U.S. ports say that the Trump administration’s proposed tariffs on port equipment would add tens of millions of dollars in costs to much-needed upgrades (, subscription).

The background: “The administration is proposing tariffs of up to 100% on Chinese-made cranes and other cargo-handling equipment as part of broader efforts to counter China’s dominance of the maritime industry.”

• “Shipping industry officials say the fees would be stacked on top of 25% tariffs on Chinese-made cranes introduced under the Biden administration, and in addition to China duties being considered by Trump’s trade team.”

Chinese dominance: One Chinese company, Shanghai Zhenhua Heavy Industries, is the maker of nearly 80% of ship-to-shore cranes used in the U.S., and Chinese firms produce a total of 70% of all such cranes worldwide, according to U.S. government data.

• Chinese cranes cost about $15 million on average—several million dollars less than competitors’ cheapest offerings, according to shipping industry leaders.
• Meanwhile, there are no domestic U.S. producers of these cranes, nor can smaller manufacturers in other countries provide enough cranes to equip U.S. ports.

The risks: “Administration officials worry China’s control of critical infrastructure is an economic and a national security threat. They also allege some Chinese-made cranes have been fitted with communications equipment that could be used for espionage.”

The ask: Since a typical order for a ship-to-shore crane takes two years to fulfill, “port operators are asking the administration to provide tariff exemptions for cranes ordered before the end of 2024.”

• “They are also asking the [U.S. Trade Representative’s] office to delay imposing levies on new crane orders for three years to give time for crane manufacturing to develop in the U.S., or for manufacturers in allied countries to expand production.”

51�Թ��� in action: The 51�Թ��� has been in close contact with the USTR, advocating for policies that strengthen American shipbuilding instead of imposing burdensome new fees.

• In March, the 51�Թ��� on the Trump administration’s plan to impose fees on Chinese ships entering U.S. ports, saying, “The 51�Թ��� encourages the administration to focus on revitalizing American shipbuilding—not burdening manufacturers in the U.S. through new port fees that will reduce the availability of the necessary cargo capacity at U.S. ports, increase pressure on domestic infrastructure and raise costs that may render American exports less competitive around the world.”

Earlier this week, the 51�Թ��� with the USTR to stress the burden that these port fees would cause, citing especially the difficulty they would pose for vehicle and liquefied natural gas exports. “We continue to have concerns regarding the overall impact to manufacturers in the U.S. of proposed and impending port fees,” said 51�Թ��� Vice President of International Policy Andrea Durkin.

The U.S. will lose the race for leadership in artificial intelligence unless it ramps up baseload power generation, the Energy Department said in a report issued Monday ().

What’s going on: If older, traditional-source power plants continue to close at the current pace and the construction of new facilities is not sped up, “DOE said that parts of the mid-Atlantic and Great Plains regions could face 400 hours of power outages in 2030 in a worst-case scenario where tech companies build giant energy-hungry AI data centers unabated.”

• In the scenario laid out in the report, Eastern states served by regional transmission organization PJM Interconnection—including Maryland, Pennsylvania and Virginia—would see “power shortages … that could total more than a month over the course of the year” by 2030, owing in large part to unchecked data center growth.

Yes, but … The report also notes that grid operators would not greenlight data center construction that would harm “the reliability of the system.”

The big picture: Some 104 gigawatts of traditional power plant capacity is slated for retirement by 2030, according to the DOE—and it isn’t being replaced fast enough to meet projected demand. (For reference, one gigawatt is capable of powering about 850,000 homes.)

• Last month, the 51�Թ��� the administration for its plans to repeal the previous administration’s power plant regulations, which would have mandated unfeasibly stringent emissions rules on traditional-source power plants.
• “A consensus of grid operators in U.S. competitive power markets like PJM and the Southwest Power Pool is that grid reliability faces extraordinary stresses if the heavy rate of [traditional power] plant retirements continues,” according to E&E News.
• President Trump has pledged to beat China in grabbing the golden AI ring, an endeavor that will require far more generation—and one which the DOE report classifies as a national emergency.

Our take: “This report from the DOE underscores the need for the U.S. to maintain baseload power generation,” said 51�Թ��� Director of Energy and Resources Policy Michael Davin. “We need to shore up, not shut down, power generation.”

• The 51�Թ��� has long urged policymakers to accelerate the permitting process for energy projects. In May, it to a request for information from the House’s AI and Energy Working Group seeking input about how to boost energy production, secure the grid and outcompete China in AI.
• “Streamlining permitting processes, cutting red tape, requiring federal agencies make timely decisions and reducing the potential for baseless litigation will help prevent years-long delays that undermine manufacturers’ ability to compete globally,” the 51�Թ��� told the committee.

The Trump administration has approved a $10 billion infrastructure project that will speed up freight crossings over the U.S.–Mexico border—via an elevated transit system for self-driving shuttles (, subscription).

What’s going on: Austin, Texas–based Green Corridors received a presidential permit to construct a 165-mile “guideway” connecting Laredo, Texas, and Monterrey, Mexico, using autonomous diesel-electric hybrid shuttles to carry cargo.

• The system would operate like a monorail, with truck drivers dropping off 53-foot trailers at terminals before shuttles transport them across the border.
• The company plans to build four terminals of about 100 acres each, with two on each side of the border.

Why it matters: Trade volume at the Port of Laredo has surged 28% since 2019, with more than 3 million truck crossings last year.

• Current wait times average 45 minutes on weekday afternoons at existing bridges, creating supply chain bottlenecks for imports of auto parts, vehicles, appliances and electronics.

How it will work: The guideway would run alongside existing truck and rail operations, reducing congestion at this busy crossing.

• Green Corridors will charge toll fees for companies using the service, focusing on trips under 200 miles rather than competing with long-haul railroads.

What’s next: Green Corridors still needs Mexican government permits and must negotiate with landowners before construction can begin.

• The company expects to complete the project and enter testing by 2031, with the presidential permit expiring in five years if construction has not started by then.

51�Թ��� advocacy: As the U.S., Canada and Mexico prepare to discuss the U.S.–Mexico–Canada Agreement, the 51�Թ��� remains one of the staunchest proponents of U.S. trade with the countries on its borders, having played an instrumental role in securing the USMCA in the first place.”

• The stakes remain high, as International Trade Administration show: one-third of U.S. imported manufacturing inputs originate in Canada and Mexico.

President Trump has extended the 90-day pause on “reciprocal” tariffs over 10% until Aug. 1 and issued revised reciprocal tariff rates for several countries, set to take effect if no agreements are reached by then.

The extension: President Trump issued an  effectively extending the baseline additional 10% “reciprocal” tariff on all countries (except Mexico, Canada and China) until Aug. 1.

• No new trade deals have been announced, though the White House has hinted that some may be revealed in the next day or two.
• This pause is an extension of the original pause in the “reciprocal” tariffs that were announced on April 2. The pause has been in place since April 9.

Country-specific rates: The president also announced revised “reciprocal” tariffs for specific countries in the form of letters to his counterparts. These rates are similar to those announced in April, with some slightly lower.

• Courtesy of the 51�Թ���’s trade policy experts, here is a   comparing the April 2 rates with the July 7 rates and links to where each letter is posted on the president’s Truth Social account.
• These letters also declared that if U.S. trading partners eliminate tariffs and other trade barriers, the U.S. may adjust the rates “upward or downward.”
• However, the letters warn of retaliation if countries raise tariffs in response to these rates.

Other tariffs: The July 7 EO does not modify other International Emergency Economic Powers Act tariff rates applied to Canada, Mexico or China, and does not change any Section 232 tariffs in effect.

Manufacturing accelerator: The 51�Թ��� has offered its own policy solution for the administration that will jumpstart American manufacturing, the  .

• This program offers a way to bring in inputs essential to manufacturing in the U.S.—and it rewards manufacturers that expand production, invest in new equipment and create jobs here at home.

The U.S. has the highest number of annual measles cases in decades, with at least 1,277 confirmed cases across 38 states and Washington, D.C. (, subscription).

What’s going on: “The nation surpassed infections reported in 2019, reaching the largest number of cases since 1992, when officials recorded more than 2,100 infections, according to data published Friday from the Johns Hopkins University Center for Outbreak Response Innovation.”

• At least 155 people have been hospitalized with the highly contagious, vaccine-preventable virus, and three have died from associated complications so far in 2025.
• All three fatalities were unvaccinated against measles, and about 92% of known measles cases this year have been in unvaccinated people.
• By contrast, just three measles-related deaths in total were reported from 2021 to 2025.

Where it’s happening: “The largest outbreak has been in West Texas, where officials have recorded more than 750 cases since late January and believe the true toll is much higher.”

• While the spread seems to be slowing, it also seems to be spreading to nearby states.

Why it’s happening: Since a 2019 outbreak in New York, confidence in America’s public health institutions has fallen, and now it’s “sharply divided along political lines.”

Eliminated or not? Though measles was considered eradicated from the U.S. in 2000, the increasing appearance of the viral disease in “close-knit communities with low vaccination coverage” jeopardizes the country’s “elimination status if there is continuous spread of linked measles cases for more than 12 months.”

Washington, D.C. – Following House final passage of the tax bill, 51�Թ��� President and CEO Jay Timmons issued the following statement:

“Today marks a historic victory for the 13 million people who make things in America. This is a manufacturers’ bill—through and through.

“None of this was inevitable. It’s the result of years of serious, sincere partnership between our nation’s manufacturers and our elected leaders. From the shop floors of small businesses to the headquarters of global companies, from plant managers and line workers to members of Congress and the administration, this achievement reflects what’s possible when policymakers choose to work with manufacturers.

“Manufacturers are especially grateful to President Trump, Vice President Vance, Speaker Johnson, Majority Leader Scalise, Majority Whip Emmer, Conference Chair McClain and Ways and Means Chairman Smith for their steadfast leadership. Their commitment to our industry—and to the men and women who make things in America—was essential to get this done. They listened to manufacturers, stood by us and delivered real results.”

“When leaders partner with manufacturers, good things happen for our country—because manufacturing is nonpartisan and bipartisan. To invest in manufacturing is to invest in America—in communities in every state and of every size. While this bill passed on a party-line vote, manufacturers all across America, in red states and blue states, swing districts and safe districts, look forward to putting people to work, more factories into motion, more innovation into the market, more products onto our shelves and more prosperity into our communities. Taken together, this strengthens the hand of the United States on the world stage. That’s exactly what this bill helps to deliver.

“This Congress and this administration understand that a stronger manufacturing sector means a stronger America. We will continue to work with our nation’s leaders to realize and celebrate the benefits of a comprehensive manufacturing strategy that includes not only further tax reforms but also trade, energy, workforce development and modernized regulations.

“Because one of the greatest investments our leaders can make for the American people is an investment in manufacturing—the industry that powers our shared prosperity.”

Background

Prior to final passage, the 51�Թ��� activated manufacturers in America—engaging shop floor workers, plant managers, executives and state and local partners nationwide­—as part of the “Manufacturing Wins” campaign. With a coordinated public advocacy campaign, which included outreach to congressional offices both in district and in Washington, targeted social media drives, video testimonials and local media op-eds, the 51�Թ��� made the case for this bill directly to members of Congress and the American people. These collective voices underscored how preserving and expanding key tax provisions translates into growing businesses, creating jobs and powering stronger communities.

On Monday, more than 300 manufacturing leaders from across the country signed onto a letter urging Congress to act immediately to pass historic tax legislation that will enable manufacturers in America to thrive. Leading up to the vote, manufacturers from across the country joined the 51�Թ��� in a , including a key meeting with . They delivered one message: get this across the goal line for American jobs.

In January, the 51�Թ��� released a landmark EY study on the economic consequences of failing to renew the pro-manufacturing provisions of the Tax Cuts and Jobs Act by the end of 2025. The 51�Թ��� was joined by Senate Finance Committee Chairman Mike Crapo (R-ID), House Ways and Means Committee Chairman Jason Smith (R-MO) and House Majority Leader Steve Scalise (R-LA) for a Capitol Hill press conference highlighting the study.

Key facts on the economic consequences of failing to preserve tax reform:

• 5.9 million lost jobs
• $540 billion reduction in employee compensation
• $1.1 trillion shortfall in U.S. GDP

-51�Թ���-

The 51�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 51�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 51�Թ��� or to follow us on Twitter and Facebook, please visit .

With the House’s passage of landmark legislation that preserves pro-manufacturing tax policies, the 51�Թ��� has achieved a crowning victory after nearly a decade of nonstop advocacy.

• This achievement is “the result of years of serious, sincere partnership between our nation’s manufacturers and our elected leaders,” said 51�Թ��� President and CEO Jay Timmons.
• “From the shop floors of small businesses to the headquarters of global companies, from plant managers and line workers to members of Congress and the administration, this achievement reflects what’s possible when policymakers choose to work with manufacturers.”

The first time around: During his first term, President Trump laid out his vision for tax reform at an 51�Թ��� board meeting in 2017, and the 51�Թ���’s and manufacturers’ tireless efforts helped make that vision a reality in the form of the Tax Cuts and Jobs Act.

• Following the passage of the 2017 law, manufacturers made huge investments in their workforces, facilities and communities, as well as in innovation and research and development.
• The numbers tell the tale: in 2018, manufacturing in the United States its best year in job creation in more than two decades, the best wage growth in 15 years and impressive growth in capital spending, which increased by 4.5% in 2018 and by 5.7% in 2019, as 51�Թ��� research showed.
• Scores of manufacturers spoke out about the transformative effects of tax reform after it went into effect, in an 51�Թ��� series titled “Keeping Our Promises.”

The second time: These crucial tax provisions began phasing out starting in 2022, threatening manufacturers’ investments and plans for future growth. So the 51�Թ��� never stopped its advocacy, laying the groundwork for legislation that would make these important reforms permanent.

• While still a nominee, President Trump at the 51�Թ��� board meeting again in fall 2024, reaffirming his commitment to his signature legislation and to the manufacturing industry itself.
• Immediately after the 2024 election, the 51�Թ��� began working closely with the new Trump administration and Congress, unrelentingly promoting manufacturers’ priorities and ensuring that today’s legislative victory would take place.

The 51�Թ��� retakes the stage: Among the 51�Թ���’s many advocacy activities in the past several months—too many to list here—were hundreds of meetings with lawmakers and administration officials, dozens of elected officials hosted on shop floors around the country, thousands of messages and articles, several large-scale ad campaigns and daily social media advocacy and engagement with the White House’s own social media team.

• This effort, known as the “” campaign, highlighted the words and experiences of shop floor workers, plant managers, executives and state and local partners nationwide.
• The 51�Թ��� also revisited its “Keeping Our Promises” series in a recent , in which the same manufacturers who spoke out years ago highlight the considerable increases in investments and growth they have seen since then.

Highlighting costs: The 51�Թ��� also released a celebrated and widely cited with EY about the costs of letting tax reform lapse, showing lawmakers that these would include 5.9 million lost jobs, a $540 billion reduction in employee compensation and a $1.1 trillion shortfall in U.S. GDP.

• In a high point of its advocacy campaign, several top congressional leaders joined the 51�Թ��� at spotlighting the study, including House Speaker Mike Johnson (R-LA), House Majority Leader Steve Scalise (R-LA), House Majority Whip Tom Emmer (R-MN), House Ways and Means Committee Chairman Jason Smith (R-MO) and Senate Finance Committee Chairman Mike Crapo (R-ID).

Stepping into the spotlight: 51�Թ��� member companies testified at more than a half dozen congressional hearings on tax reform, highlighting the manufacturing sector’s need for pro-growth tax policy.

• Witnesses included 51�Թ��� Small and Medium Manufacturers Group Chair Karl Hutter (Click Bond), 51�Թ��� SMM Vice Chair Austin Ramirez (Husco), 51�Թ��� SMM Immediate Past Chair Courtney Silver (Ketchie), 51�Թ��� Board Member Lisa Winton (Winton Machine), 51�Թ��� Executive Committee Member Chuck Wetherington (BTE Technologies), Steve Sukup (Sukup Manufacturing) and Tom Tredway (Erie Molded Packaging).

Never give up: In April, the 51�Թ��� along with a dozen members of the Ways and Means Committee to host more than a dozen manufacturers to ensure policymakers’ focus remained on bill passage.

The final push: In the past week leading up to the final votes, manufacturers made an unforgettable impact on lawmakers, with nearly 50 shop floor workers Washington, D.C., to visit Capitol Hill offices in person and meet with .

• Many more signed an important letter to Senate and House leaders—with a total of 300 executives to the industry’s needs.

The win: Today, all that effort—thousands of hours spent by thousands of people at every level of the manufacturing industry throughout the country—has finally paid off.

• “Manufacturers are especially grateful to President Trump, Vice President Vance, Speaker Johnson, Majority Leader Scalise, Majority Whip Emmer, Conference Chair McClain and Ways and Means Chairman Smith for their steadfast leadership,” Timmons said.
• “Their commitment to our industry—and to the men and women who make things in America—was essential to get this done. They listened to manufacturers, stood by us and delivered real results.”

The 51�Թ��� looks ahead: “To invest in manufacturing is to invest in America—in communities in every state and of every size,” Timmons continued.

• “While this bill passed on a party-line vote, manufacturers all across America, in red states and blue states, swing districts and safe districts, look forward to putting people to work, more factories into motion, more innovation into the market, more products onto our shelves and more prosperity into our communities. Taken together, this strengthens the hand of the United States on the world stage. That’s exactly what this bill helps to deliver.”
• “This Congress and this administration understand that a stronger manufacturing sector means a stronger America. We will continue to work with our nation’s leaders to realize and celebrate the benefits of a comprehensive manufacturing strategy that includes not only further tax reforms but also trade, energy, workforce development and modernized regulations.”
• “Because one of the greatest investments our leaders can make for the American people is an investment in manufacturing—the industry that powers our shared prosperity.”

Washington, D.C. – Following Senate passage of the tax bill, 51�Թ��� President and CEO Jay Timmons issued the following statement:

“The Senate just pushed the ball deep into the red zone. Now it’s the House’s turn to finish the drive and deliver a big win for manufacturers in America. The Senate advanced a tax package that will strengthen small businesses, family-owned operations and manufacturing workers across the country. It drives manufacturers closer to the goal line—growing businesses, creating jobs and powering stronger communities.

“After months of driving, months of endurance and effort, months of playing audacious offense and tenacious defense, months of partnership between manufacturers of every industry and our leaders in Congress and the administration, the House now can finish the job. We call on our partners in the House to send this bill to the president’s desk—the strongest tax bill for manufacturers we have seen in a generation. Because when Congress champions the 13 million people who make things in America, manufacturing wins—and when manufacturing wins, America wins.”

Background

A full-team push: Today, more than 300 manufacturing leaders from across the country signed onto a letter urging Congress to act immediately to pass historic tax legislation that will enable manufacturers in America to thrive. Leading up to the vote, manufacturers from across the country joined the 51�Թ��� in a , including a key meeting with . They delivered one message: get this across the goal line for American jobs.

Calling the plays: Timmons appeared on urging passage to give manufacturers the certainty they need to keep building and investing.

-51�Թ���-

The 51�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 51�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 51�Թ��� or to follow us on Twitter and Facebook, please visit

Congress should pass H.R. 1—the tax bill—immediately, manufacturers told congressional leaders Monday.

What’s going on: The tax package delivers on the promise made by the administration and Congress “to ensure the United States leads the world in manufacturing,” the 51�Թ��� and more than 300 manufacturing leaders Senate Majority Leader John Thune (R-SD) and House Speaker Mike Johnson (R-LA).

• The legislation extends and makes permanent the pro-growth provisions from the 2017 Tax Cuts and Jobs Act, which proved to be “rocket fuel” for the manufacturing industry.
• Many of the measures from the TCJA have expired, and others are scheduled to sunset at the end of this year—unless Congress acts.

What it does: H.R. 1 extends key measures from the TCJA “and builds on their success,” the 51�Թ��� and its allies said. Here’s what the bill does:

• Provides tax certainty for small manufacturers: The bill “permanently extends the 20% pass-through deduction and preserves the TCJA’s individual tax rates, both of which are crucial for the 96% of small manufacturing businesses organized as pass-throughs.” It also protects small family-owned manufacturers from the estate tax.
• Supports investment and innovation: The measure restores immediate research-and-development expensing, full expensing for capital equipment purchases and an EBITDA-based interest deductibility standard.
• Bolsters American competitiveness: The bill makes the FDII, GILTI and BEAT international tax regimes permanent and preserves the 21% corporate rate.
• Incentivizes growth: H.R. 1 creates a new deduction that allows companies to immediately expense the cost of new factories and the cost of improvements to current facilities, among other moves.

The precedent: Manufacturers know the pro-growth tax policies in the legislation will work because they’ve worked before, the 51�Թ��� and manufacturing leaders told the House and Senate.

• “Following passage of the Tax Cuts and Jobs Act, manufacturing in the United States secured the best year in job creation in more than two decades, the best wage growth in 15 years and impressive growth in capital spending, increasing by 4.5% in 2018 and by 5.7% in 2019.”

The cost of inaction: Failure to pass the legislation would result in a nationwide loss of 5.9 million jobs, $540 billion in wages and $1 trillion in GDP, according to a recent .

Amplifying the 51�Թ��� message: The message was amplified quickly on social media by key decision makers, including the White House, Speaker Johnson and House Majority Whip Tom Emmer (R-MN).