Two Candidates Announce Manufacturing Revival Pledges Ahead of Presidential Election
Trump: "Major Manufacturing Will Return to the US"
Low Regulation, Cheap Energy Costs, but High Tariffs
Harris Expected to Unveil Manufacturing Incentive Pledge on 25th
WP: Inflation Reduction Act and CHIPS Act-Scale Incentives
With about 40 days remaining until the U.S. presidential election, both Republican presidential candidate former President Donald Trump and Democratic presidential candidate Vice President Kamala Harris have emphasized the revival of American manufacturing.
On the 24th (local time), former President Trump claimed that during his administration, low taxes and regulations, along with high tariff barriers, would attract major global manufacturers to the United States.
In a speech held in Savannah, Georgia, a key battleground state, Trump said, “If you vote for Trump, you will witness a massive exodus of manufacturing from China to Pennsylvania, from Korea to North Carolina, and from Germany to Georgia.” His strategy is to provide various incentives to induce the relocation of manufacturing plants to the U.S., while imposing high tariffs on those that do not comply.
He emphasized, “We will offer the lowest taxes, the cheapest energy costs, and the least regulatory burden to all manufacturers on the planet,” but added, “This only applies if the products are made in the United States.” He reiterated that manufacturers who do not produce goods in the U.S. will face significant tariffs. As an example, he said, “We will impose a 100% tariff on every car crossing the Mexican border.”
Former President Trump announced plans to create “special zones” on federal government land where industries relocating from other countries can be redeployed. He described these zones as “places with extremely low taxes and regulations.”
He also emphasized that if elected, he would appoint a “manufacturing ambassador.” According to him, the manufacturing ambassador’s role would be to travel around the world persuading major manufacturers to return to the United States.
Trump mentioned his pledge to reduce the current 21% corporate tax rate to 15%, calling it “the core of my manufacturing renaissance plan.” He added, “If we cut the corporate tax to 15%, we will be the most competitive place on Earth,” but clarified, “This is only for companies that make products in the U.S.”
He also said, “U.S.-based manufacturers will receive expanded research and development (R&D) tax credit benefits.” Furthermore, “Companies can fully expense the cost of heavy equipment and other facilities in the first year, and new manufacturing investments can be fully deducted.”
Vice President Harris, aiming to win not only the “home base” (Democratic supporters) but also the “swing voters” (moderates and Republican supporters) ahead of the election, has prepared various pledges for the revival of American manufacturing.
According to The Washington Post (WP), Harris is expected to announce tax incentive benefits comparable to laws enacted in 2022, such as the Inflation Reduction Act (IRA) and the CHIPS Act, during a campaign speech scheduled for the 25th in Pittsburgh. The IRA focuses on the government investing hundreds of billions of dollars in the domestic clean energy industry to combat climate change, while the CHIPS Act aims to boost advanced semiconductor production capacity in the U.S., creating large-scale jobs. WP predicted, “Harris will try to contrast herself with Trump, who seeks to impose trillions of dollars in tariffs through tax incentives.”
Both candidates are busy preparing pledges for a second golden age of American manufacturing ahead of the election, but some question the feasibility of these promises. The costs required to fulfill these pledges are astronomical, and no concrete roadmap has been presented on how to implement plans to reduce related deficits.
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