Veryable is your trusted source for information and insights as you navigate the upcoming policy changes and regulatory shifts driving a U.S. Manufacturing Renaissance under the new administration.
With Donald Trump now back in the White House and the Republican Party holding a narrow majority in both the Senate and House, a new wave of policy shifts is already underway—many of which will directly impact the manufacturing and distribution landscape.
As former operations leaders, we understand that your time is limited and your focus is on running your business—not tracking every political development. That’s why we’ve created this hub to keep you informed, without the noise.
Below, you’ll find a breakdown of key policy updates, insights into what may be on the horizon, and how these changes could affect your operations. We’ve also launched a new podcast and published a series of blog articles to help you stay ahead and position your business for success in this evolving environment.
Since taking office for his 2nd term, President Trump has rapidly reasserted tariffs as a core instrument of U.S. trade policy. In just over five months, the administration has rolled out and threatened a sweeping series of tariffs aimed at reducing trade imbalances, reshoring manufacturing, and forcing foreign governments to negotiate under new terms favorable to American interests.
For a full list of country & product specific tariffs, click here.
Key Objectives:
1. Reduce the U.S. trade deficit
2. Realign global supply chains away from China and BRICS-aligned nations
3. Use tariff leverage to accelerate bilateral trade deals
4. Incentivize domestic production in critical sectors such as steel & aluminum, energy, pharmaceuticals, and semiconductors
This Week's Developments (as of December 12th, 2025):
-->December 12th:
1.) The Trump administration is forming an international coalition on critical minerals and technology, dubbed the Pax Silica Declaration, with partners like Singapore, Australia, Japan, South Korea, and Israel to counter China’s dominance in rare earths and tech supply chains. This could influence future tariff and export-control policy as part of broader economic security coordination.
-->December 10th:
1.) Switzerland announced that the U.S. tariff cut on Swiss imports (from ~39% to ~15%) will be applied retroactively from November 14, 2025, easing tariff burdens on Swiss exporters and reflecting progress toward final implementation of the U.S.–Swiss trade framework.
2.) U.S. Trade Representative Greer also described “best-ever offers” from India in ongoing bilateral trade agreement negotiations, signaling potential progress on future tariff and market-access terms. Greer also signaled openness to “different treatment” for South Africa under a trade initiative, potentially hinting at targeted tariff or market-access
adaptations for African economies within a U.S. trade strategy.
3.) The U.S. will impose phased-in tariffs on Nicaraguan imports starting January 1, 2026 over labor and human-rights concerns; tariffs will start at 0% (Jan 1), rise to 10% in 2027 and 15% in 2028 on all non-CAFTA-U.S. origin goods, stacking on an existing 18% reciprocal tariff.
-->December 9th:
1.) Indian Prime Minister Narendra Modi held his third call with President Trump since the U.S. imposed tariffs — including up to 50% on certain Indian exports — underscoring ongoing negotiations and trade pressure points.
-->December 8th:
1.) President Trump threatened a 5% tariff increase on Mexican goods tied to water-delivery treaty compliance disputes, adding a trade leverage element to bilateral negotiations; this follows prior tariff pressures on Mexico under USMCA tensions.
-->December 5th:
1.) President Trump met with Mexican and Canadian leaders to discuss trade issues following tariff escalations earlier in the year and ahead of USMCA review talks — part of broader tariff/friction management with key North American partners.
-->December 4th:
1.) The Office of the United States Trade Representative (USTR) issued formal tariff-modification details under the bilateral U.S.–South Korea trade deal; changes to the Harmonized Tariff Schedule (HTSUS) went into effect. Under the deal, imports from South Korea — including automobiles, automobile parts, timber/lumber products, and certain aircraft/aircraft parts — are subject to adjusted country-specific tariffs. The revised 15% tariff rate for Korean-origin autos and parts applies to goods entered for consumption on or after Nov 1, 2025.
-->December 1st:
1.) The U.S. confirmed that the general tariff rate on goods from South Korea (including autos) has been reduced to 15%, effective retroactively to November 1, 2025 — a major shift from the prior 25% under earlier tariff statutes. The reduction also extends to certain timber, lumber, aircraft, and aircraft-part imports from Korea, in line with updated HTSUS provisions under the Korea deal.
2.) The Office of the United States Trade Representative (USTR) formally extended 178 tariff-exclusion categories (industrial, medical and solar-equipment items from China) — originally set to expire November 29 — through November 10, 2026, under the existing U.S.–China “truce.”
-->November 26th:
1.) The U.S. granted a one-year extension of tariff exclusions for certain Chinese industrial and medical imports — including equipment used in solar-energy manufacturing — under the terms of the previously announced U.S.–China trade truce.
What Business Leaders Should Do Now
With tariffs back on the table and trade tensions escalating, manufacturers, importers, and distributors face a renewed wave of uncertainty.
To stay competitive, leaders should take a proactive approach:
1. Map and Monitor Tariff Exposure
2. Diversify Your Supply Base
3. Accelerate Reshoring Plans
4. Stay Agile with On-Demand Labor
5. Stay Ahead of Policy Shifts
The second Trump administration continues to prioritize reshoring U.S. manufacturing, protecting domestic supply chains, and countering foreign dependencies. Since late summer, that agenda has accelerated — with selective tariff deployment, revised trade frameworks, conditional enforcement pauses, and reciprocal dealmaking reshaping global trade relationships.
Confirmed Developments (As of December 12th, 2025)
U.S.–Japan Trade Pact (In Force)
→ Effective mid-September. U.S. tariffs on Japanese autos, auto parts, and select consumer goods set at 15%.
→ Japan expanded purchases of U.S. beef, pork, corn, and LNG, reinforcing supply-chain stability and U.S. export demand.
U.S.–EU Framework Agreement (Active)
→ 15% tariff ceiling locked in for EU goods entering the U.S.
→ Pharmaceuticals included; generics retain explicit carve-outs.
→ EU committed $600B in U.S. investment and $750B in energy purchases by 2027.
→ Germany continues to seek targeted steel-quota relief; no changes announced.
U.S.–South Korea Strategic Trade Framework (Implemented)
→ U.S. tariffs on Korean goods — including autos and parts — reduced to 15% (from 25%), retroactive to Nov 1, 2025, and codified via HTSUS updates in December.
→ Korea reaffirmed $350B in U.S. investment and $100B in LNG purchases.
→ U.S. agricultural and auto exports remain duty-free; Korea maintains protections on rice and beef.
U.S.–U.K. Bilateral Trade Agreement (Expanded December 2025)
→ NEW: As of Dec 1, U.S. tariffs eliminated (0%) on U.K.-origin pharmaceuticals, APIs, and medical technology for a minimum three-year term.
→ Products are exempt from current and future Section 232 and Section 301 actions during the agreement window.
→ Prior terms remain: steel and aluminum tariffs removed; auto tariffs reduced to 10% for the first 100,000 vehicles annually.
→ U.K. expanded access for U.S. ethanol, beef, and industrial exports and committed to higher pharma spending tied to U.S. supply.
U.S.–Switzerland Trade Framework (Implementation Phase)
→ Announced Nov 14; implementation advanced in December.
→ U.S. tariffs on Swiss exports cut to ~15% (from ~39%), applied retroactively to Nov 14.
→ Switzerland committed to shifting portions of pharma, rail-equipment, and gold-smelting production to the U.S.
→ U.S. agencies continue reviewing investment-screening and compliance mechanisms tied to relocation commitments.
U.S.–China Tariff Truce (Active; Extended via Exclusions)
→ October truce reduced average U.S. tariffs on Chinese imports to ~47% (from ~57%) for one year, conditional and HS-code specific.
→ December update: USTR extended 178 Section 301 tariff exclusions (industrial, medical, solar-manufacturing equipment) through Nov 2026, preventing automatic snap-back on those lines.
→ China continues its pause on new rare-earth export controls and pledged increased U.S. soybean and energy purchases.
→ Compliance benchmarks remain active; tariff relief can be withdrawn if commitments are missed.
U.S. - Vietnam Trade Framework (In Negotiation/Implementation Phase)
→ Framework agreed October 2025 to establish “reciprocal, fair and balanced” trade.
→ U.S. maintains a 20% tariff baseline on most Vietnamese imports; select products eligible for zero-tariff treatmentonce commitments are finalized.
→ Vietnam committed to improved market access for U.S. industrial and agricultural exports and reductions in key non-tariff barriers.
→ Framework is not yet a fully implemented treaty; negotiations continue.
New Bilateral Engagements & Framework Talks
U.S.–India (Negotiations Ongoing)
→ High-level talks resumed; USTR describes India’s proposals as its “best-ever.”→ India approved a ₹450.6B (~$5.1B) export-support package to offset U.S. tariffs (up to 50%) on textiles, jewelry, and chemicals.
→ No tariff reductions implemented yet; talks continue.
U.S.–Indonesia (At-Risk / Renegotiation Phase)
→ Indonesia committed in July to eliminate tariffs on most U.S. agricultural and industrial imports.
→ December update: U.S. officials warned the deal briefly risked collapse over enforcement and non-tariff barriers; negotiations resumed with completion targeted by year-end.
U.S.–Philippines
→ Philippines’ tariff-free regime on U.S. goods remains in force.
→ Reciprocal 19% U.S. tariffs on Philippine exports remain under review for 2026; no December changes.
U.S.–Latin America Trade Frameworks (Signed Nov 14; Rolling Implementation)
→ Frameworks with Argentina, Ecuador, Guatemala, and El Salvador remove or reduce tariffs on select goods (e.g., coffee, bananas, pharma inputs).
→ Certain tariff relief begins before full treaty texts are finalized, on a rolling basis.
→ Designed to ease consumer-price pressure while expanding U.S. export access.
Section 232 Investigations & Tariff Expansion
→ Commerce continues Section 232 probes into medical equipment, robotics, and industrial machinery (launched Sept 24).
→ Tariffs effective Oct 14 remain: 10% on lumber; 25% on kitchen cabinets and upholstered wood goods, with step-ups scheduled into 2026.
→ 25% tariffs on medium/heavy-duty trucks and 10% on imported buses took effect Nov 1; implementation guidance delayed to mid-Q1 2026.
Export Controls & Enforcement
→ Expanded export-control rules (effective Sept 29) now apply to any subsidiary 50%+ owned by a blacklisted entity, closing prior loopholes and raising compliance exposure for multinationals.
Since January 2025, the Trump administration has taken a more aggressive stance on immigration enforcement and border control, framing these actions as essential to national security and domestic labor protection. Over the past few months, these policies have expanded beyond the southern border to affect visa processing, work authorization, driver credential verification, and workforce compliance. For manufacturing, warehousing, logistics, and transportation companies, immigration is no longer a border-only issue. It is now a daily operational variable inside the domestic supply chain.
Below are the verified developments and their implications for manufacturing and logistics operations.
Confirmed Developments (As of November 5th, 2025)
ICE Enforcement Surge & Detention Expansion
→ ICE arrests remain elevated, up roughly 250–270% year-over-year, with operations increasingly targeting undocumented individuals without criminal records.
→ Detention centers continue to operate above capacity, prompting new federal contracts and construction plans — DHS internal planning is now targeting ~110,000 detention beds by early 2026.
→ Recent internal DHS guidance directs regional ICE offices to coordinate with local law enforcement on “integrated enforcement zones” near industrial hubs and logistics corridors, not just major border entry points.
Deportation Flights & Border Operations
→ DHS has now conducted more than 800 deportation flights since January 2025, with expanded use of commercial charter carriers to supplement military aircraft.
→ Weekly removal operations have increased sharply since late August, with DHS reporting nearly 310,000 deportations to date — on pace to potentially exceed 400,000 by year-end.
→ The administration reaffirmed its target of 1 million deportations annually, though analysts note that logistical constraints and court challenges may pose practical friction to reaching that goal.
Executive Order 14159: “Protecting the American People Against Invasion”
→ Re-issued under emergency authority, this order continues to enable expedited removals, limits asylum eligibility, and increases ICE and CBP deployments across border states.
→ The order also restricts access to certain federal benefits for undocumented individuals and expands cross-agency data sharing to locate those with expired visas.
Visa & Immigration Enforcement Changes
→ DHS has fully implemented its “Catch-and-Revoke” system for visa compliance, allowing automatic suspension of student, work, and visitor visas upon detected status violations.
→ Enhanced vetting now includes mandatory social media screening and expanded background reviews for both new and renewing visa applicants.
→ New data-sharing agreements between DHS, the Department of Labor, and the Social Security Administration are producing an uptick in I-9 audits and E-Verify enforcement across industries.
→ The Department of Labor has announced plans to tie future work-visa allocations to demonstrated domestic recruitment efforts — a potential headwind for manufacturers and logistics firms reliant on H-2B or similar programs.
Implications for Manufacturing & Logistics Operations
→ Labor availability is tightening: Heightened enforcement and deportations are shrinking the available pool of undocumented and temporary workers, especially in warehousing, food processing, and logistics.
→ Compliance exposure is growing: I-9 audits and E-Verify inspections are becoming more frequent, particularly for employers with large hourly workforces or high turnover.
→ Wage pressures are rising: Reduced access to flexible labor is driving increased overtime and reliance on temp agencies, inflating operating costs and eroding productivity.
→ Regional disparities are emerging: Facilities near enforcement zones face higher labor volatility, making agile staffing strategies a key differentiator.
The One Big Beautiful Bill Act (H.R. 1) delivers the most significant federal push in decades to bring manufacturing and logistics production back to U.S. soil. It offers powerful tax incentives designed to accelerate facility upgrades, modernization, and domestic supply-chain expansion.
What’s New:
Permanent R&D Expensing
Beginning in tax year 2025, domestic R&D expenditures may be fully deducted in the year incurred—eliminating the five-year amortization requirement. Small businesses can even apply this deduction retroactively to R&D expenses incurred after 2021.
100% Bonus Depreciation + QPP Expensing
-->Section 168(k): Restores 100% bonus depreciation for tangible property (machinery, equipment, and tools) acquired after January 19, 2025
-->Section 168(n): Creates full expensing for Qualified Production Property (QPP)—covering new factories or qualified improvements to production-related real property.
EBITDA-Based Interest Deductibility
The bill permanently restores the pre‑2022 standard for the business interest deduction—allowing interest on loans and leases to be deducted based on EBITDA rather than EBIT, increasing borrowing capacity for capital-intensive projects
Why This Matters for Domestic Manufacturers
These provisions create a clear financial advantage for U.S. operations:
-->Immediate cost recovery on factory upgrades, automation, and facility investments—accelerating ROI and preserving capital.
-->Enhanced support for innovation by allowing immediate write-off of R&D investments.
-->Greater financing flexibility for capital-intensive expansion through improved interest deduction rules.
Whether you're modernizing a plant, expanding warehousing, or rebuilding supply chains—this legislation aligns the tax code with on-the-ground manufacturing growth.
How Veryable Helps You Respond Faster
While these incentives unlock powerful tax advantages, success still depends on your ability to scale operations quickly and efficiently.
That’s where Veryable comes in. Our on-demand labor model gives manufacturers and distributors the flexibility to:
-->Stand up new lines or facilities rapidly without long hiring cycles,
-->Handle demand surges tied to contracts, seasonal peaks, or reshoring wins,
-->Expand into new marketswith a lean, variable labor cost structure.
The bottom line: Veryable helps you turn federal incentives into real-world output—without adding long-term headcount or fixed cost.
On July 4, 2025, President Trump signed the H.R.1 – One Big Beautiful Bill Act into law, representing the most sweeping business tax reform since the Tax Cuts and Jobs Act (TCJA) of 2017. The bill makes several TCJA provisions permanent and introduces targeted incentives aimed at accelerating investment in the U.S. manufacturing, warehousing, and logistics sectors.
This legislation signals a strong federal commitment to reshoring industrial capacity, modernizing facilities, and incentivizing innovation through the tax code.
Key Provisions of the H.R.1 – One Big Beautiful Bill Act:
Permanent Full Expensing for Capital Investment
100% bonus depreciation is restored and made permanent for short-lived capital assets (under 20 years), including machinery, tools, and equipment.
The bill adds a new provision under §168(n) allowing full expensing of Qualified Production Property (QPP) such as:
-->New manufacturing or logistics facilities
-->Upgrades to existing warehouses or production lines
-->Major capital improvements
Construction must begin before December 31, 2028, and assets must be placed in service before January 1, 2031.
Immediate R&D Expensing
The bill permanently restores the immediate deduction of R&D expenses, reversing the TCJA’s five-year amortization rule that took effect in 2022.📉
EBITDA-Based Interest Deductibility
-Reverts interest deduction limits back to an EBITDA basis (instead of EBIT), increasing financing flexibility—especially important for capital-intensive industries like manufacturing and logistics.
Corporate and Pass-Through Tax Clarity
The 21% corporate tax rate is retained permanently. While the bill does not raise the pass-through deduction, it extends the TCJA §199A deduction for pass-through businesses (like LLCs and S Corps) beyond its original sunset date of 2025.
International Tax Reform
The bill preserves and modifies key international tax rules including:
-FDII (Foreign-Derived Intangible Income)
-GILTI (Global Intangible Low-Taxed Income)
-BEAT (Base Erosion and Anti-Abuse Tax)These are adjusted to encourage onshoring of intellectual property and discourage profit shifting.
Estate Tax Exemption
The doubled estate tax exemption from the TCJA (approx. $13M per individual) is made permanent, protecting many family-owned manufacturers from estate tax exposure.
Implications for U.S. Manufacturing, Warehousing, and Logistics
-Major incentive to reshore operations and modernize domestic production
-Supports facility expansion, automation, and advanced manufacturing adoption
-Encourages contract manufacturing, especially for reshoring or nearshoring initiatives
-Improves financing options for asset-heavy operations via EBITDA treatmentMakes tax planning more predictable, encouraging longer-term investments
Bottom Line: This bill rewards U.S.-based investment. Companies that can scale efficiently, move quickly, and stay agile will be in the strongest position to win contracts, grow margins, and future-proof operations.
Following the signing of the One Big Beautiful Bill Act (H.R.1) and President Trump’s return to office, the administration has taken a more business-friendly regulatory stance—particularly in the areas of labor classificationand energy policy. While many deregulatory efforts are still unfolding, a few early moves are already impacting U.S. manufacturers and distributors.
Key Regulatory Developments
Labor Classification: DOL Halts Enforcement of Independent Contractor Rule
In May 2025, the U.S. Department of Labor formally announced it will not enforce the 2024 rule that tightened standards for classifying independent contractors under the Fair Labor Standards Act (FLSA).
-->This means employers face less risk of federal enforcement when using 1099 workers.
-->However, the 2024 rule remains in effect and can still be enforced through private litigation or state action.
Corporate Reporting: ESG and Transparency Rules Paused or Withdrawn
The administration has paused or withdrawn several proposed federal disclosure rules, including:
-->A climate-related financial disclosure mandate for federal contractors. These delays lower anticipated administrative burden but do not repeal existing laws, such as those under the Corporate Transparency Act (CTA).
Energy Policy: Signals of Deregulation
While H.R.1 does not contain direct environmental or permitting reforms, the administration has publicly signaled intentions to:
-->Repeal the EPA’s 2009 greenhouse gas endangerment finding—a foundational regulation underpinning many climate rules.
-->Review emissions standards for vehicles and industrial sources.
No final rulings have been published, but energy-intensive sectors (e.g., refining, mining, heavy manufacturing) are anticipating possible regulatory relief.
Implications for Manufacturers and Distributors
-->Increased labor flexibility from the DOL enforcement pause allows companies to use independent contractors more confidently to scale operations or meet temporary demand.
-->Reduced compliance risk around ESG reporting enables small and mid-sized manufacturers to allocate more resources to growth rather than administrative tracking.
-->Pending energy policy changes may lower operating costs over time, but businesses should continue monitoring regulatory developments closely.
How Veryable Helps You Stay Ahead
Even as the regulatory picture evolves, operational agility remains the advantage. With Veryable’s on-demand labor model manufacturers and distributors can:
-->Tap into a growing pool of skilled workers—while aligning with the DOL’s latest enforcement posture.
-->Adjust headcount quickly for production surges, facility expansions, or seasonal peaks—without the friction of long hiring cycles.
-->Stay lean, scalable, and focused on growth, even amid uncertain regulatory or market conditions.
Whether you’re navigating changing labor rules or positioning for tax-advantaged expansion, Veryable helps you execute with speed and confidence.
While the full scope of President Trump’s second-term agenda is still unfolding, early policy moves already signal significant shifts in the U.S. economic and regulatory landscape. These developments will bring both new opportunities and operational challenges—and the businesses that succeed will be the ones that stay agile and adaptable.
Partnering with Veryable gives you more than just agility—it connects you with experienced operational strategists and a proven approach to navigating uncertainty. Our platform empowers you to quickly scale your workforce in response to market changes, reduce fixed labor costs, and seize growth opportunities with confidence and speed.
Explore our latest blog articles at the bottom of the page to learn how Veryable can help your business not only adapt but thrive in this evolving environment.
Hosted by Veryable’s Head of Reindustrialization & Growth Innovation, Matt Horine, this podcast is your go-to source for clear, actionable insights in a time of sweeping policy change. In each episode, we cut through the noise of sensational headlines and conflicting narratives to deliver grounded analysis on what these once-in-a-generation shifts mean for your business.
You’ll also hear firsthand from operations professionals, business leaders, and industry experts as they share how they’re adapting to today’s evolving economic landscape—so you can do the same with confidence and clarity.
We'll be releasing new episodes each Tuesday at 6AM CST. To ensure you don't miss out, make sure to subscribe on: Apple Podcasts, Pocket Casts, Spotify, or YouTube.
Gain valuable insights related to upcoming changes under the new administration
Amidst policy changes, uncertainty is inevitable. If you need further guidance or have any questions on any of these topics, we've got you covered - our team has over a century of combined experience in the manufacturing and distribution sectors.
