DISCLAIMER: Given the rapidly evolving landscape of tariffs, the topics and content covered in this article may no longer accurately represent the current situation at the time of its publishing.
The transition to a new administration brings a wave of challenges, changes and opportunities for individuals and industries alike. For the manufacturing industry, which in Wisconsin includes 9,200 plants and more than half a million workers, this shift represents a pivotal moment.
National and state-level reforms have the potential to work collaboratively, reshaping an industry that has long been a pillar of economic strength. Manufacturing leaders must stay agile, leveraging emerging opportunities and benefits to drive growth, foster innovation and strengthen their competitive edge. Adaptability and strategic vision will be the keys to thriving in this evolving landscape.
Anticipated policy developments
President Trump has detailed an agenda that includes fostering robust economic growth through targeted tax reforms, tariffs on other countries, streamlined regulations and transformational energy policies. These priorities are designed to create a business-friendly environment that encourages innovation and bolsters global competitiveness.
While the larger goal of these changes is to reduce reliance on foreign manufacturing, which would bode well for the industry long-term, the current concern is how to manage the short‑term adjustments required to make these changes. Additionally, industry leaders are uncertain about whether future administrations will maintain this commitment to domestic manufacturing growth or reverse course, potentially introducing further changes after Trump’s term ends.
President Trump signed proclamations imposing 25% tariffs on all steel and aluminum products without exceptions or exemptions, aside from steel that is melted and poured and aluminum that is smelted and cast in the U.S. These tariffs would stack on top of already imposed tariffs and are scheduled to take effect March 12, applying globally.
Additional tariffs on Canada and Mexico went into effect March 4. Canada is Wisconsin’s number one trading partner, followed by Mexico and then third is China.
Manufacturers must prepare for the impact these tariffs will bring to the industry. Manufacturers will inevitably face higher costs for steel and aluminum imports, which could lead to increased production expenses, supply chain disruptions and having to renegotiate contracts to share tariff-related risks.
Mitigating these risks is crucial, and manufacturers can take proactive steps to assess their supply chain vulnerabilities and diversify their suppliers to include domestic or less impacted sources. Improving operational efficiency and planning for potential pricing adjustments can also help to offset increased expenses.
When it comes to China, we need to even the playing field with our trade. President Trump initiated tariffs on China during his first administration, and many of those have stayed in place. He has since issued an additional 10% tariff on China to end its unfair trade practices. These tariffs are anticipated to help manufacturers with some of these key issues:
- Significant subsidies to Chinese domestic industries allow them to produce goods at a lower cost
- Intellectual property (IP) theft where Chinese entities use or replicate technologies without proper authorization
- Forced labor in manufacturing processes raises ethical concerns and allows products to be priced below production costs
- Dumping practices price products below production costs, undermining competitors and destabilizing industries
- Nonmarket practices such as illegal activities and policies distort market dynamics
Proposed tariffs can be an important tool in addressing concerns about illegal immigration and drug trafficking. By using them strategically as a negotiating tactic, the administration could encourage solutions while maintaining economic cooperation that benefits all parties involved.
Key advancements in tax reform, under the previous Trump Administration, such as the reduction of the corporate tax rate from 35% to 21%, significantly benefited manufacturers. With the potential to lower the U.S. corporate tax rate for manufacturers to 15% this time around, manufacturers are optimistic they can revitalize domestic production, stimulate innovation and strengthen global market standings under the new administration.
On the regulatory front, expected policy adjustments may address issues ranging from right-to-repair laws to Overhaul, Maintenance, Modification and Repair (OMMR) contracts and streamlined environmental standards. These reforms aim to ease compliance challenges, enabling manufacturers to operate more efficiently while staying aligned with evolving standards.
Workforce challenges remain top of mind for manufacturers nationwide, as skilled worker shortages continue to impact the industry. Anticipated changes to the H-1B skilled-worker visa program could provide manufacturers with access to an expanded pool of global talent, effectively bridging critical skills gaps.
Lastly, President Trump’s expected stance on energy policy pivots toward expanding fossil fuel production, while the general sentiment throughout all levels of government is acknowledging the importance of a balanced approach. This strategy is expected to ensure stable and affordable energy supplies, supporting manufacturers with cost-effective operations while addressing environmental and sustainability considerations.
By focusing on these strategic priorities, the Trump Administration’s policies could herald a new era of growth and innovation within the manufacturing industry, creating a foundation for long‑term competitiveness and economic empowerment.
Collaboration to advance manufacturing
Industry leaders across Wisconsin understand that collaboration is essential to successfully navigating upcoming policy shifts and changes. Manufacturers must actively engage with policymakers, championing reforms that address the distinctive needs of the state’s industrial base. By uniting expertise with proactive, forward-thinking policies, the manufacturing industry can unlock new opportunities for sustainable expansion while maximizing the benefits of supportive government initiatives.
Jen Fietz is the owner and CEO of Imaginasium, a growth accelerator dedicated to unlocking revenue potential for manufacturers. With a strong foundation in financial services and extensive experience collaborating with C-suite leaders, Fietz understands that every initiative must tie directly to the organization’s growth vision. She brings a results-oriented mindset to the manufacturing sector, focusing on strategies that drive measurable growth and enhance overall financial performance.
