Navigating Trump 2.0

The Trump administration has solidified its protectionist manufacturing agenda with the recent signing of the One Big Beautiful Bill, now officially law. The legislation introduces sweeping tax incentives and federal support aimed at reshoring production, modernizing factories, and bolstering critical supply chains.

‍Key Provisions of the Bill:

-Permanent R&D Expensing: The law reinstates and makes permanent the ability for manufacturers to immediately expense research and development costs—significantly lowering the cost of innovation and accelerating product development.

-Full Capital Equipment Expensing Extended: Manufacturers can now fully expense capital equipment purchases through 2030, giving long-term certainty for investments in machinery, automation, and advanced manufacturing systems.

-Pro-Growth Interest Deductibility: A new standard based on EBITDA (rather than EBIT) increases manufacturers’ borrowing power, making it easier to finance facility expansions and major capital projects.

-Facility Investment Credit: A 15% tax credit is now available for investments in new or refurbished manufacturing facilities, with an additional 5% bonus for projects located in Opportunity Zones or distressed regions.

-Domestic Content Bonus: Manufacturers using at least 75% U.S.-sourced materials now qualify for an added tax incentive—further reinforcing domestic supply chains and supplier networks.

‍Sector-Specific Support:
The bill prioritizes industries deemed essential to national and economic security, including:

-Pharmaceuticals and biotech
-Semiconductors and rare earth metals
-EV batteries and charging infrastructure
-Medical devices and automation technologies

Implications:
‍The newly enacted incentives dramatically improve the economic calculus for domestic production. For small and mid-sized manufacturers, permanent R&D expensing and facility credits reduce upfront costs and de-risk long-term investments. Larger firms are also expected to fast-track U.S.-based projects to capitalize on the expanded deductions and bonuses.

The law is poised to trigger a manufacturing resurgence—cutting operating costs, enhancing competitiveness, and creating ripple effects across construction, logistics, and supply chain sectors. The demand for skilled labor is expected to surge, putting upward pressure on wages and increasing the appeal of industrial careers nationwide.

By locking in these incentives, the administration signals a lasting shift toward reshoring and economic nationalism, with long-term implications for trade policy, workforce development, and industrial strategy.

The Trump administration has officially signed the One Big Beautiful Bill into law, solidifying its commitment to using tax policy as a catalyst for growth in the manufacturing and distribution sectors. Building on the foundations of the Tax Cuts & Jobs Act (TCJA), the bill introduces permanent provisions and new incentives designed to help manufacturers create jobs, invest locally, and compete globally.

‍Key Provisions of the One Big Beautiful Bill:

-Permanent Pass-Through Deduction Increase: The bill increases and makes permanent the pass-through deduction for small and medium-sized manufacturers, freeing capital for investment and job creation.

-Competitive Individual Tax Rates: It permanently maintains the favorable individual tax rates established by previous reforms, benefiting the majority of manufacturers organized as pass-through entities.

-Estate Tax Exemption: The estate tax exemption is raised and made permanent, protecting more family-owned manufacturing businesses from heavy taxation at transfer.

-International Tax System: The bill preserves and makes permanent key international tax provisions (FDII, GILTI, and BEAT), bolstering U.S. competitiveness in the global market.

-Full Expensing for Capital Equipment: Full expensing for machinery and equipment purchases is revived and extended, enabling manufacturers to modernize facilities and scale operations.

-Immediate R&D Expensing: The bill reinstates immediate expensing of research and development expenses, supporting innovation across the sector.

-Pro-Growth Interest Deductibility: A restored, more favorable interest deductibility standard enhances manufacturers’ ability to finance growth projects.

-Corporate Tax Rate Protection: The corporate tax rate remains locked at 21%, safeguarding the competitive advantage created during Trump’s first term.

-Territorial Tax Adjustments: Changes to tax rules for multinational corporations aim to discourage profit shifting and promote fairer taxation of global operations.

‍Implications:
‍These tax reforms are expected to incentivize companies to reshore operations, invest in automation and infrastructure, and strengthen domestic supply chains. Lower taxes on corporations relative to pass-through entities may shift business structures, while combined with tariffs, these policies could encourage firms to rethink global production footprints in favor of U.S.-based manufacturing.

For American manufacturers, the bill marks a critical opportunity to leverage significant tax savings for expansion and innovation. Businesses should review their tax strategies promptly to maximize the benefits from this landmark legislation.

Since the start of Trump’s second term and following the signing of the One Big Beautiful Bill, the administration has intensified efforts to reduce regulatory burdens on manufacturers and distributors, with a strong focus on energy, manufacturing, labor, and Corporate Transparency/ESG-related policies.

‍Updated Details:

-Environmental Regulations: The administration has moved forward with rolling back emissions standards and streamlining permit processes for factory expansions, cutting significant compliance costs for manufacturers. Deregulatory actions continue to target restrictions on oil and gas drilling, coal mining, and other traditional energy sectors, supporting the administration’s energy independence goals. These changes have already bolstered market confidence in fossil fuel industries.

-Labor Regulations: In May, the Department of Labor formally ceased enforcement of the Biden-era independent contractor rule, making it easier for companies to classify workers as independent contractors. This shift is expected to increase flexibility in workforce management and reduce labor costs, particularly benefiting manufacturers ramping up production to meet onshoring incentives.

-Corporate Transparency and ESG Policies: The administration has scaled back several Corporate Transparency and ESG (Environmental, Social, and Governance) disclosure requirements, easing reporting obligations for manufacturers and distributors. This move is aimed at reducing administrative overhead and regulatory complexity.

-OSHA and Workplace Safety: Adjustments to OSHA regulations are underway to lower compliance costs and simplify reporting requirements, without compromising worker safety, helping manufacturers redirect resources toward productivity improvements.

‍Implications:
‍These regulatory rollbacks are poised to deliver substantial cost savings for manufacturers and distributors, freeing capital for reinvestment in automation, facilities, and workforce development. The labor rule changes empower companies—especially in manufacturing—to leverage 1099 independent contractors more aggressively, enhancing operational flexibility amid rising demand driven by reshoring efforts.

Overall, the regulatory environment is shifting to encourage expanded domestic production while reducing administrative hurdles, signaling a more business-friendly landscape that aligns with the administration’s broader economic and industrial priorities.

The second Trump administration has accelerated a realignment of U.S. trade policy, focused on reducing trade deficits, reshoring manufacturing, and countering Chinese economic influence. President Trump has reaffirmed his willingness to use tariffs, sanctions, and aggressive trade negotiations as tools to extract concessions and protect U.S. interests—reshaping global supply chains in the process.

‍Details:

-Renegotiation of USMCA: The United States-Mexico-Canada Agreement (USMCA), up for its first mandated joint review in July 2026, is now at the center of renewed trade talks. Rather than a routine review, the Trump administration has signaled its intent to pursue a broader renegotiation. The new strategy includes tightening rules of origin for key sectors like automotive and semiconductors, strengthening enforcement provisions, and addressing cross-border migration and regional energy integration as part of a more expansive North American economic and security agenda.

-Asia-Pacific Trade Initiatives: To contain China's influence in the Indo-Pacific, Trump has launched a series of bilateral trade initiatives with key regional players. Talks with India have advanced on issues related to digital trade, pharmaceuticals, and market access for American agricultural products. Early-stage discussions with South Korea and Vietnam are focused on enhancing investment protections and reducing non-tariff barriers, with an emphasis on reshoring or near-shoring parts of critical supply chains, such as electronics and rare earth minerals.

-Tariff-Driven Realignment: The administration has reimposed or expanded tariffs on select imports from China, Mexico, and even some European partners to incentivize domestic production and punish what it deems “unfair trading practices.” Simultaneously, new incentive frameworks—through the retooling of the Inflation Reduction Act and Buy American Act—are being used to support the return of high-value manufacturing.

‍Implications:
‍In the near term, heightened trade frictions and policy uncertainty may lead to disruptions across logistics, sourcing, and pricing. Companies heavily reliant on just-in-time supply chains or offshore production should prepare for volatility. However, over the long term, the realignment could yield more predictable market conditions for U.S.-based manufacturers and encourage capital investment in domestic and regional supply networks.

To remain competitive, companies must monitor trade negotiations closely, diversify supply sources, and build flexibility into their operations—especially as new trade rules, tariffs, and compliance requirements emerge with little notice.

Policy Overview:
Since his inauguration in January 2025, President Trump has enacted an aggressive suite of immigration measures aimed at enforcement, deportation, and restricting legal pathways:

-Mass deportations & expanded enforcement: Through the "One Big Beautiful Bill," Congress has approved approximately $170 billion for border and ICE operations—including funding for up to 1 million deportations annually, new detention facilities, and tens of thousands of additional ICE/CBP agents and immigration judges.

-Executive orders restricting legal immigration: National emergency declarations, such as “Protecting the American People Against Invasion,” and an executive order ending birthright citizenship, have reinstated travel bans on several countries, expanded vetting requirements, and broadened expedited removal authority.

-Laken Riley Act: This legislation requires the mandatory detention of undocumented immigrants charged with even minor theft-related offenses, while allowing states to sue the federal government for non-compliance.

-Student & work visa crackdowns: Over 1,000 student visas have been revoked under a new “Catch and Revoke” policy. The Department of Homeland Security now screens all visa applicants’ social media. These actions are currently facing legal challenges.

‍Short-Term Impact on Manufacturers & Distributors:

-Labor shortages: Visa revocations, deportations, and worksite enforcement have significantly reduced the availability of immigrant labor—particularly in agriculture, meatpacking, construction, and logistics.

-Operational and compliance risks: Heightened ICE audits and enforcement have increased legal and administrative burdens for employers. Penalties for non-compliance with I-9 requirements range from $281 to $2,789 per violation, with greater scrutiny across industries.

‍Long-Term Outlook & Strategic Responses:

-Adopt flexible labor models by leveraging platforms like Veryable, which provides access to an on-demand labor pool. This allows businesses to scale their workforce up or down in real time—without the long-term risk or overhead of traditional hiring.

-Invest in automation to reduce dependency on manual labor, especially for repetitive or high-turnover tasks in manufacturing, warehousing, and distribution.

-Diversify workforce sourcing by expanding domestic recruitment efforts, including targeting underemployed populations and re-skilling local talent.

-Maintain rigorous compliance with immigration and labor regulations through proactive I-9 audits, internal reviews, and updated HR processes.

-Build agile supply chains that can adjust to workforce disruptions by localizing production, shifting to regional suppliers, and integrating more adaptive scheduling and staffing systems.