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Mexico’s first judicial elections occurred on Sunday, and the results, while not yet completely final, raise questions about the integrity of the country’s judges going forward ().

State of play: With more than 98% of the vote tallied as of Tuesday night, President Claudia Sheinbaum’s party is poised to control the Supreme Court, with a majority of judges holding ideological or political ties to the ruling party.

• Experts, allied nations and companies that do business in Mexico—including manufacturers—have voiced concerns that judicial elections will turn the judiciary into a political arm of the president’s party.

The background: Before leaving office, Sheinbaum’s mentor and predecessor President Andrés Manuel López Obrador forced through a controversial reform mandating elections for judges.

• The 51�Թ��� has warnings since these reforms were first proposed last year, Mexican officials in person that companies investing in Mexico need assurance that their portfolios will be protected under the new judicial regime.
• “We’re concerned that some of the reforms as proposed could harm Mexico’s standing as an attractive place to do business,” 51�Թ��� Vice President of International Policy Andrea Durkin  on the “Imagen Empresarial” (“Corporate Image”) podcast in September. “Manufacturers pay attention to how banks are factoring these potential changes to the constitution into Mexico’s risk profile.”

More to come: “Votes were still being counted for the majority of the 2,600 federal, state and local judge positions up for grabs in Sunday’s elections.”

The 51�Թ��� says: “A lack of confidence in Mexico’s judicial system could imperil future U.S. investments, particularly at a time of great uncertainty in trade relations between our countries,” said Durkin today.

Some economists are questioning the accuracy of recent U.S. inflation data—and say it could have big economic implications (, subscription).

What’s going on: “The Bureau of Labor Statistics, the office that publishes the inflation rate, told outside economists this week that a hiring freeze at the agency was forcing the survey to cut back on the number of businesses where it checks prices.”

• In the April inflation report, government statisticians had to use a less precise price-change measurement method than they had used previously.

Why it’s important: The staffing shortage poses questions about the accuracy of recent and coming inflation reports, economists say.

The details: To determine the inflation rate, hundreds of government staffers known as enumerators disperse across U.S. cities, checking—often at brick-and-mortar locations—how much businesses are charging for goods and services.

• Statisticians pull that data into the consumer price index, which shows how the cost of living is changing for Americans.
• If enumerators can’t find specific prices, they make educated guesses based on close substitutes.
• But in April, with the hiring freeze on, they often had to “base their guesses on less comparable products or other regions of the country—a process called different-cell imputation—much more often than usual, according to the BLS.”

The effect: In the April inflation data, 29% of price guesses—a percentage twice as high as any month in the past five years—were made using these less-accurate comparisons.

• One economist told the Journal: “We don’t know if this is a big issue or a small issue, but we just know that directionally, it’s making things worse.”

President Trump on Tuesday evening signed a that doubled Section 232 tariffs on steel, aluminum and derivative products from 25% to 50%.

Why it matters: The move marks a significant escalation in trade policy, with no exemptions or exclusions—and has immediate implications for manufacturers relying on imported metals.

The details: The new rates took effect at 12:01 a.m. EDT on June 4. There is no exemption for goods on water.

• The proclamation builds on a Feb. 10 executive order that reinstated 25% tariffs on imports of steel, raised tariffs on aluminum from 10% to 25%, revoked all country exemptions and quotas, terminated all general production exclusions granted by the Department of Commerce and rescinded the department’s authority to process any new or renew any product exclusion requests.
• Unpublished annexes are expected to provide more clarity on product scope. Guidance from U.S. Customs and Border Protection is anticipated in the coming days.

Zoom out: President Trump says domestic production capacity remains underutilized and foreign producers continue to flood the U.S. market with low-priced goods—undercutting the competitiveness of the U.S. steel and aluminum industries.

• “Increased tariffs will more effectively counter foreign countries that continue to offload low-priced, excess steel and aluminum in the U.S.,” the proclamation reads.

Between the lines: The U.K. narrowly avoids higher tariffs—for now. Steel and aluminum from the U.K. remain at 25%, contingent on compliance with the U.S.–U.K. Economic Prosperity Deal. Rates could rise to 50% on or after July 9 if the U.K. falls short.

“Stacking” reshuffled: The June 3 proclamation shakes up the with key changes:

• Canada and Mexico: Products subject to new 50% Section 232 steel and aluminum tariffs are not subject to International Emergency Economic Powers Act fentanyl tariffs.
• IEEPA “reciprocal” tariffs: For countries facing “reciprocal” tariffs, companies must pay the 10% on all non-aluminum, non-steel content—or face “severe consequences” for underreporting.

The 51�Թ��� says: Amid ongoing trade negotiations, manufacturers continue to press for  with top export markets, so they have the certainty they need to plan, hire and compete—while also gaining access to the globally sourced raw materials and critical minerals necessary to make things in America.

• As 51�Թ��� President and CEO Jay Timmons has stated, “If we see more trade agreements, tax reform legislation and more regulatory certainty—as part of our comprehensive manufacturing strategy—manufacturers win. And when manufacturers win, America wins.”

What’s next: Even at full throttle—every machine running, every job filled—the industry can only produce 84% of the inputs necessary to meet demand. That means at least 16% of manufacturing inputs must be imported to grow domestic manufacturing. Stay tuned for a new proposal the 51�Թ��� is announcing tomorrow morning.

With a large number of Americans still lacking reliable internet access, some states are looking to space to fix the problem (, subscription).

What’s going on: “From Maine to Nevada, states are starting to help some of the 24 million Americans who lack reliable broadband pay for satellite internet, rather than focusing such aid primarily on fiber connectivity as they have in the past.”

• Providers including Amazon have launched new endeavors to increase internet access worldwide, and they could benefit from these states’ push. Amazon’s Project Kuiper, for example, launched its first operational satellites in April and expects to deploy thousands more in the coming years.

The details: “Louisiana set aside $28.7 million of the funds it expects from a federal broadband subsidy program for satellite service, and Nevada has agreed to spend $12.7 million of its funds from the same program on Project Kuiper to serve about 4,400 rural addresses.”

• The Biden administration’s $42.5 billion Broadband Equity, Access and Deployment Program favored fiber over satellite, but the Commerce Department announced earlier this year it will overhaul the program to make it “tech-neutral.”

Why didn’t they do it sooner? Some officials have been reluctant to subsidize satellite internet because it provides slower service than fiber. It’s also susceptible to more frequent outages and requires satellite updates every few years.

• But it’s also quicker and less expensive to implement. (For some remote locations, the price tag for laying fiber can go well into six figures for a single home.)

A stopgap solution: To meet needs while BEAD is rejiggered, Maine and South Carolina have started state-funded programs that subsidize satellite broadband for some rural addresses—but only from a specific provider.

• Texas has a similar program and has accepted applications from providers, and following the Commerce Department’s BEAD announcement, West Virginia is considering spending some of its funds on satellite internet, too.

China dominates the global battery mineral market, from sourcing and mining to production, according to the .

What’s going on: “China imported almost 12 million short tons of raw and processed battery minerals, accounting for 44% of interregional trade, and exported almost 11 million short tons of battery materials, packs and components, or 58% of interregional trade in 2023, according to regional UN Comtrade data.”

• These minerals’ importance will only increase as the appetite for electric vehicles and renewable energy technologies grow.
• However, as the 51�Թ��� recently the Commerce Department, Section 232 tariffs will not increase domestic sourcing of these critical minerals or decrease U.S. reliance on China for them.
• Instead, to shore up domestic critical minerals supply, the U.S. needs permitting reform, incentives for producers and enhanced trade relationships with partners other than China.

Mining and production: China either produces domestically or has large ownership stakes in companies that produce these minerals.

• In 2023, the country produced about 18% (33,000 short tons) of the world’s mined lithium, and Chinese firms “control 25% of the world’s lithium mining capacity.”
• Chinese companies also have sizable investments in mining operations in the “lithium triangle,” an area in Chile, Argentina and Bolivia that holds half of the world’s lithium stores.
• “China produced 79%, or 1.27 million short tons, of the world’s natural graphite in 2024, according to the U.S. Geological Survey.”
• Chinese firms own 80% of cobalt production in Congo-Kinshasa, the location of more than 50% of the world’s cobalt production.

Trade: After production, raw battery minerals are exported—and in 2023, China accounted for nearly half (46%) of global raw battery mineral import trade.

• That year, the world’s largest lithium producer, Australia, sent almost all its lithium exports to China.

Processing: China has the global critical minerals processing market cornered, too.

• It processes more than 90% of the world’s graphite.
• In 2022, “Chinese companies accounted for over two-thirds of the world’s cobalt and lithium processing capacity.”
• The next year, China imported 20% of global processed battery minerals, mostly African cobalt. Also in 2023, China exported 58% of the world’s processed battery minerals, primarily synthetic graphite, elsewhere in Asia and to Oceania.

Battery materials manufacture and trade: “China accounted for 53% of the world’s battery material export trade in 2023.”

• In 2022, the country made 85% of the world’s anodes, 82% of its electrolytes, 74% of its separators and 70% of its cathodes.
• In 2023, China controlled almost 85% of “battery cell production capacity by monetary value.”

If the administration wants manufacturing in the U.S. to succeed, it needs a planned strategy—one that includes extending the pro-growth provisions from the 2017 Tax Cuts and Jobs Act and gets the tax bill containing most of President Trump’s legislative agenda passed quickly. That was the from 51�Թ��� President and CEO Jay Timmons on Fox Business’ “Maria Bartiromo’s Wall Street” last week.

What’s going on: “Manufacturers were very excited that we had a new president in January who said, ‘We’re going to get this … [tax] bill done. We’re going to extend the cuts from 2017,’” Timmons told show host Maria Bartiromo on May 30 on location at the 2025 Reagan National Economic Forum in Simi Valley, California. “But now we have the uncertainty … that really requires this bill to be done as soon as possible. It’s urgent now.”

• The Senate returned this week from its Memorial Day recess with the legislative agenda as its top priority.
• The GOP hopes to extend the TCJA tax cuts permanently, while Democrats want the nonpartisan parliamentarian of the United States to determine whether an extension without an end date would violate the .

Why it’s important: More than 85% of manufacturers in the U.S. say Congress must preserve the TCJA’s provisions in response to trade uncertainty, according to the 51�Թ���’s latest , which Bartiromo cited.

• At risk if it doesn’t preserve the measures: some 6 million jobs and a $1 trillion economic hit.

Certainty on trade: But more is needed, Timmons said.

• The trillions of dollars in U.S. investments secured recently by the administration are definite wins—but only “as long as we have that strategy in place,” which, in addition to sound tax policy, includes regulatory certainty.
• “Trade is going to be critical,” Timmons told Bartiromo. “We need to have the certainty around whatever the rules of the game are regarding our trading practices and the work we do with our trading partners, because if we don’t have the right policies in place, and imports do end up costing us a lot of money for critical inputs for manufacturing, we can’t build those facilities.”
• For every dollar of manufactured inputs imported to the U.S., “we get $1.40 of output,” Timmons went on. “And so if we tariff everything the same, we may be in a little bit of trouble when it comes to making those investments.”

The latest resources for the 51�Թ���’s tax campaign may be found on the “” webpage.

Washington, D.C. – The 51�Թ��� released its Q2 2025 Manufacturers’ Outlook Survey, revealing that optimism among manufacturers across the country has dropped sharply. Only 55.4% of respondents report a positive outlook for their companies—a nearly 15-percentage-point drop from Q1 and the lowest level since the height of the COVID-19 pandemic in Q2 of 2020.

The survey conducted earlier this month revealed that 85.4% of manufacturers believe Congress should preserve pro-growth tax policies in response to trade uncertainty.

Trade uncertainty remained the top business concern for the second consecutive quarter, cited by 77.0% of respondents, followed by increased raw material costs, which was cited by 66.1% of respondents.

“These numbers are yet another indicator that manufacturers need increased policy certainty. Congress must act urgently to preserve tax reform and empower manufacturers to make the long-term investments that drive the American economy,” said 51�Թ��� President and CEO Jay Timmons. “The stakes are high: preserving tax reform will prevent the loss of 6 million jobs and avoid a $1 trillion hit to the economy—that’s why manufacturers are calling on the Senate to preserve pro-manufacturing tax policies from the House-passed reconciliation bill, while also taking steps to ensure the final package is maximally beneficial for our industry. Pro-manufacturing tax policies are a critical component of a comprehensive manufacturing strategy; this quarter’s results also show that manufacturers need a strategic approach to trade policy that allows our industry to reduce costs and access the inputs we need to make things in America.”

The 51�Թ��� releases these results to the public each quarter. Further information on the survey is available here.

-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 rese arch 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 .

The U.S. Supreme Court has put limits on a procedural requirement that has become a major roadblock for infrastructure and energy projects: environmental review under the National Environmental Policy Act.

The background: The predecessor of substantive statutes like the Clean Water and Clean Air Acts, NEPA is the “the single most litigated environmental statute,” 51�Թ��� Vice President and Deputy General Counsel Erica Klenicki told us.

• In this case, local government and environmental groups brought a NEPA challenge to the Surface Transportation Board’s approval of an 88-mile rail line in Utah’s Uinta Basin, which would connect to the national rail network and carry crude oil to refinery markets along the Gulf Coast.
• The board approved the project after issuing a comprehensive, 3,600 page environmental impact statement under NEPA.
• But that wasn’t enough—the D.C. Circuit blocked the board’s approval, ruling that its exhaustive analysis failed to consider the repercussions of more oil production made possible by the rail line. It contended that the board should have considered the potential impact of increased oil refining on Gulf coast communities thousands of miles away—even though the board had no power at all to control for those effects.

The issue: The 51�Թ��� filed an in the case, urging the court to reject the premise adopted by the D.C. Circuit—that NEPA requires agencies to analyze the effects of upstream or downstream projects over which they do not exercise regulatory authority.

• Yesterday, the justices ruled 8–0 (Justice Neil Gorsuch recused himself) that the board did not have to consider such sweeping effects when evaluating whether to approve a project.

What they said: “NEPA is a procedural cross-check, not a substantive roadblock,” Justice Brett Kavanaugh . “The goal of the law is to inform agency decision-making, not to paralyze it.”

• “Courts should review an agency’s [environmental impact statement] to check that it addresses the environmental effects of the project at hand. The EIS need not address the effects of separate projects,” Kavanaugh wrote. “In conducting that review, courts should afford substantial deference to the agency as to the scope and contents of the EIS.”

The 51�Թ���’s advocacy: The 51�Թ��� has been a of limiting regulatory overreach, especially the out-of-control permitting process that strangles important new infrastructure and energy projects.

• “The congressional intent behind NEPA when it was passed was to make sure a specific project could be reviewed for its environmental impact—not to slow down progress on important economic growth,” said 51�Թ��� Director of Energy and Resources Policy Michael Davin. “The U.S. should learn from other nations and review projects for environmental impacts without taking years and years to approve them.”

The 51�Թ���’s Q2 Manufacturers’ Outlook Survey, released today, that manufacturers’ optimism about the future is dropping precipitously.

The headline number: Only 55.4% of respondents report a positive outlook for their companies—a nearly 15-percentage-point drop from Q1 and the lowest level since the height of the COVID-19 pandemic in Q2 of 2020.

• Manufacturers do have a prescription for renewed confidence, however, as 85.4% of respondents believe Congress should preserve pro-growth tax policies in response to trade uncertainty.

Worried about trade: Trade uncertainty remained the top business concern for the second consecutive quarter, cited by 77.0% of respondents.

• Almost as alarming is the increase in raw material costs, which was cited by 66.1% of respondents.

The 51�Թ��� says: “These numbers are yet another indicator that manufacturers need increased policy certainty. Congress must act urgently to preserve tax reform and empower manufacturers to make the long-term investments that drive the American economy,” said 51�Թ��� President and CEO Jay Timmons.

• “The stakes are high: preserving tax reform will prevent the loss of and avoid a $1 trillion hit to the economy—that’s why manufacturers are calling on the Senate to preserve pro-manufacturing tax policies from the House-passed reconciliation bill, while also taking steps to ensure the final package is maximally beneficial for our industry.”
• “Pro-manufacturing tax policies are a critical component of a comprehensive manufacturing strategy; this quarter’s results also show that manufacturers need a strategic approach to trade policy that allows our industry to reduce costs and access the inputs we need to make things in America.”

Washington, D.C. – The Manufacturing Leadership Council, the digital transformation division of the 51�Թ���, today released a groundbreaking report, “,” that reveals how manufacturers are embracing artificial intelligence on shop floors. The report, a product of the MLC’s “,” underscores the need for a policy framework that supports U.S. AI growth, innovation and leadership—one that streamlines compliance, fosters transparency and aligns energy, workforce, privacy and innovation rules with the realities of smart manufacturing.

AI has become essential to modern, competitive manufacturing in America: for example, manufacturers use cutting-edge AI tools like AI-powered cameras to enhance worker safety and eliminate product defaults, AI simulations to design new products and optimize shop floor operations, and AI data analytics to control costs and manage supply chains more efficiently. Manufacturers are also embedding AI in new, intelligent products. The report shows that 51% of manufacturers already use AI in their operations, with 61% expecting investment in AI will increase by 2027. By 2030, 80% say AI will be essential to growing or maintaining their business.

The report also illustrates that manufacturers face ongoing barriers to using and scaling AI—indicating data quality and accessibility as the top challenges, with 65% of respondents reporting they lack the right data for AI applications and 62% citing data that is unstructured or poorly formatted. 

“Artificial intelligence isn’t new to manufacturing. For years, manufacturers have been developing and deploying AI-driven technologies—machine vision, digital twins, robotics and more—to make shop floors smarter, supply chains stronger and workplaces safer,” said 51�Թ��� President and CEO Jay Timmons. “The latest report from the MLC reinforces the need for modernized, agile, pro-manufacturing AI policy solutions, so that manufacturers can continue to innovate on shop floors across America. Manufacturers welcomed President Trump’s early commitment to maintaining and advancing America’s global AI dominance, and we look forward to continuing to champion American AI leadership and manufacturing in America, which starts with adopting a pro-AI regulatory framework and pursuing policies that bolster innovation.”

As manufacturers seek to expand their use of AI and unlock its full potential at scale, the report also highlights areas where manufacturers may face challenges and require additional investment, such as modernizing data architectures, developing a more knowledgeable workforce, building organizational trust and accelerating legacy infrastructure upgrades.

The 51�Թ��� has proposed a series of policy recommendations for policymakers to drive AI development and adoption in manufacturing:

1. Adopt a pro-AI regulatory approach given the growing number and variety of use cases in AI in manufacturing, which require an optimized regulatory environment.
2. Develop the manufacturing workforce of the AI age by supporting training programs, career and technical education institutions and STEM education and immigration. According to the MLC’s report, 82% of manufacturers cite a lack of AI-ready skills as the top workforce challenge.
3. Advance energy and permitting reform to support AI-related data center growth.
4. Protect personal data by passing a comprehensive privacy law that preempts state laws, provides liability protections that prevent frivolous litigation and adopts a risk-based approach that enables innovation and AI.
5. Support U.S. manufacturing of AI chips by executing funding agreements with chip manufacturers and renewing the Advanced Manufacturing Investment Credit.
6. Incentivize U.S. AI innovation by passing the One Big Beautiful Bill Act that preserves pro-manufacturing tax policies.

“A worldwide competition for AI supremacy is underway, and manufacturers have the opportunity to lead the charge with this game-changing technology,” said MLC Founder, Vice President and Executive Director David R. Brousell. “Fast-moving developments in the technology have turbo-charged interest and adoption of AI in its many forms, intensifying competition. To win, manufacturers in America need a strong ecosystem of partners and support to create new, competitive advantages in all facets of the manufacturing industry, from operations, to supply chains, to the workforce—and in their efforts to innovate for the future.”

Background:

Manufacturers have been at the forefront of developing and implementing cutting-edge AI systems that are transforming shop floors and revolutionizing operations.

In March, the 51�Թ��� to inform the White House’s development of an AI Action Plan, explaining how manufacturers are using AI on the shop floor and in operations, with specific recommendations on rebalancing and right-sizing AI regulations to enhance America’s global AI dominance.

In May 2024, the 51�Թ��� published “Working Smarter: How Manufacturers Are Using Artificial Intelligence”—a report that explains the ways in which manufacturers are already using AI, making the technology integral to modern manufacturing with manufacturers at the forefront of developing and implementing AI systems.

Most recently, the House-passed reconciliation bill included language to prevent a patchwork of state AI regulations that would impede AI innovation and development, in line with the 51�Թ���’s advocacy for workable, flexible national standards.

-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 rese arch 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 .

Featured Quotes from 51�Թ��� Board Chair Kathy Wengel and Partners of the MLC’s

“AI continues to drive innovation, efficiency and better outcomes for manufacturers across America. From accelerating drug discovery and development to optimizing manufacturing operations, AI enables companies to make smarter, faster and more impactful decisions,” said Kathy Wengel, Executive Vice President and Chief Technical Operations and Risk Officer at Johnson & Johnson and Board Chair at the 51�Թ��� (51�Թ���). “Importantly, AI empowers employees at all levels, when we equip them with the knowledge and understanding to help shape the implementation of these new technologies. AI is proving to be an essential partner on the shop floor, and we must continue to ensure manufacturing employees have the skills they need to build the future of our industry.”

“The Manufacturing Leadership Council survey shows that while continuous improvement remains a key performance indicator for AI in manufacturing, more manufacturers are starting to see greater value in automation and prediction moving forward. From identifying improvement opportunities to analyzing how people interact with systems, AI is enhancing workplace safety and amplifying the power of the leaders on the floor to solve problems faster before any potential disruption to operations. With 63% of manufacturers meeting or exceeding their targets with AI, this survey shows that this trend is only expected to grow as companies prepare their factories for the future.” – Tim Buschur, Chief Strategy Officer, Invisible AI

“Smart manufacturing is advancing rapidly as manufacturers invest in AI and emerging technologies to drive efficiency and long-term business value. Rockwell Automation is helping address key challenges, such as workforce gaps and technology readiness, through strategic partnerships that accelerate digital transformation. The broader manufacturing sector can benefit from initiatives like this, which share practical expertise and clear guidance to demystify AI and empower organizations at any stage of digital maturity to adopt advanced technologies with confidence.” – Austin Locke, Global Lead of Data Science and AI at Kalypso, a Rockwell Automation business  

“AI is rapidly becoming central to manufacturing operations, yet nearly a third of survey respondents are unsure who oversees AI governance at their company. To fully realize AI’s potential, organizations can build a stronger foundation by implementing robust governance strategies that go beyond the technology itself—fostering cross-functional collaboration among leadership and frontline teams to ensure that data, systems, and people are equipped to use AI effectively in real-world settings.” – Kris Slozak, Director of Consumer and Industrial Products, West Monroe

“Business leaders are already seeing immediate benefits with the use of AI; however, manufacturers still face challenges around inaccessible data, limited employee skillset to leverage AI effectively, and outdated systems and operations. Companies that invest early in strong data governance, smart integration, and cross-functional collaboration will be better positioned to compete and grow.”  – Prasoon Saxena, Global Co-Lead Products Industries, NTT DATA

“AI is already driving measurable value for manufacturers by enhancing decision-making and transforming critical supply chain operations. To fully unlock its potential at scale, investing in modern data infrastructure, enhancing workforce knowledge and skills, and adopting new processes to embrace new ways of working will be essential to help manufacturers remain competitive now and in the future.”  – Richard Weng, Managing Director, Accenture