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Navigating Trump 2.0
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.
What's Ahead For U.S. Manufacturers and Distributors?
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 sectors.
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.
Reinstitution and Expansion of Tariffs
Tariffs
Reinstitution and Expansion of Tariffs
Since taking office for his 2nd term, President Trump has rapidly reasserted tariffs as a core instrument of U.S. trade policy. In the past year, the administration has rolled out and threatened a sweeping series of tariffs aimed at reducing trade imbalances, reshoring production, and forcing foreign governments to negotiate under new terms favorable to American interests.
Click Here for a full list of country & product specific tariff rates.
Recent Developments (as of February 18th, 2026):
February 18th:
--> During a visit to Washington, Indonesian President Prabowo Subianto said Indonesia hopes to secure a lower U.S. tariff rate (~18%) under a new bilateral trade deal, building on prior reductions from ~32% to ~19% and indicating ongoing negotiation on tariff terms. Learn more.
February 17th:
--> U.S. Trade Representative Jamieson Greer said the administration may consider modifying how steel and aluminum tariffs are applied, but emphasized no automatic changes will occur without formal presidential action. Learn more.
February 16th:
--> India’s chief trade negotiator is set to visit the U.S. next week to finalize the bilateral trade agreement; New Delhi anticipates a U.S. tariff cut on Indian goods to 18% within the week. Learn more.
February 13th:
--> Multiple outlets reported that President Trump and aides are considering rolling back certain metal tariffs, particularly on steel and aluminum, amid concerns over price pressures and ahead of the 2026 midterm elections, though no formal rollback has yet been published as tariff schedules. Learn more.
February 12th:
-->The U.S. and Taiwan finalized a reciprocal trade agreement that confirms a 15% tariff rate on Taiwanese imports while Taiwan commits to cutting or eliminating tariffs on nearly all U.S. goods, alongside substantial bilateral purchase commitments. Learn more.
February 11th:
-->The European Union extended its suspension of a €93 billion tariff retaliation package against U.S. imports for six months, maintaining the pause on counter-tariffs through August 6, 2026. Learn more.
February 10th:
-->A new U.S.–Bangladesh trade agreement was reported under which certain garments produced from U.S. input materials will receive tariff-free entry, while standard tariff rates remain around 19% on other imports, boosting Bangladesh’s competitive position. Learn more.
-->A White House fact sheet confirmed India will eliminate or reduce tariffs on a wide range of U.S. industrial and agricultural products, including tree nuts, fruit, soybean oil, wine, and spirits as part of the interim trade framework. Learn more.
Trade Agreements & Supply Chain Realignment
Trade Policy
Trade Agreements & Supply Chain Realignment
The Trump administration is using bilateral trade agreements to realign supply chains, link market access to investment, and reduce reliance on strategic competitors. Below is a consolidated overview of active trade frameworks and finalized agreements.
Active & Recent Trade Agreements (As of February 13th, 2026)
US–Taiwan Trade Agreement (Finalized February 2026)
→ 15% U.S. tariff rate confirmed; Taiwan to eliminate/lower tariffs on nearly all U.S. goods + large purchase/investment commitments. Learn more.
US-India Interim Trade Framework (Released February 2026)
-> Commits India to eliminate/reduce tariffs across many U.S. industrial + ag categories; includes major auto/motorcycle tariff changes. Learn more.
US-Bangladesh Trade Agreement (Signed February 2026)
-> 19% U.S. tariff framework reported; includes concessions for some apparel made with U.S.-origin inputs. Learn more.
US–Japan Agreement (Active)
→ Baseline 15% U.S. tariff framework on nearly all Japanese imports with sector-specific treatment; includes major Japan investment commitments. Learn more.
US–EU Framework (Active)
→ $600B additional investment in the U.S. + $750B in U.S. energy purchases by 2028 under the framework. Learn more.
US–South Korea Strategic Trade & Investment Deal (Active)
→ 15% tariff framework; $350B U.S. investment + $100B LNG commitments. Learn more.
US–UK Economic Prosperity Deal (Active)
→ Core deal covers autos/steel/aluminum arrangements; Dec pharma agreement exempts U.K.-origin pharma/APIs/med-tech from certain tariffs. Learn more.
US–Switzerland (Implementation Phase)
→ Tariff reduction concept to 15% and investment pledges were publicly discussed; implementation timing has been reported as uncertain. Learn more.
US–China (One Year Truce Active)
→ Reported tariff reduction from ~57% to ~47% tied to fentanyl cooperation, ag purchases, and a one-year pause on new rare-earth controls. Learn more.
US-Vietnam Framework (In Negotiation)
→ Maintains 20% tariffs on most Vietnamese goods with carve-outs decided later; Vietnam to provide preferential access for U.S. goods. Learn more.
Latin America Frameworks (Argentina, Ecuador, Guatemala, and El Salvador)
→ Framework deals focused on reciprocal market access and streamlined terms with these partners. Learn more.
Incentives For Domestic Manufacturing
Incentives
Incentives For Domestic Manufacturing
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.
Tax Policy Reforms
Tax Reform
Tax Policy Reforms
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 U.S. industry.
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.
Regulatory Reforms
Regulatory Reforms
Regulatory Reforms
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.
U.S. Manufacturing Today Podcast
Hosted by Veryable’s Head of Reindustrialization Matt Horine, U.S. Manufacturing Today 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 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.
New episodes drop each Tuesday at 6AM CST. Available on Apple Podcasts, Pocket Casts, Spotify, and YouTube.
Thought Leadership Blog
Resources To Help You Stay Ahead
Gain valuable insights related to upcoming changes under the new administration
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Beyond the GDP Headlines: Why Nonlinear Growth Requires a Flexible Labor Model
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The Implications of a Rebalancing Economy for Capacity and Labor Strategy in 2026
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What Uneven Demand Means for Operational Planning in Manufacturing and Logistics in 2026
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The Trade Deficit Is Shrinking. That’s Not a Recession Signal. It’s a Reindustrialization Signal.
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Trump 2.0 Week 29 In Review: Discussing The Impending Tariffs on Semiconductors and Pharmaceuticals, Escalating Tensions With India, and More
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Trump 2.0 Week 28 In Review: Discussing The New Country-Specific Rates, The New Tariffs on Copper & Transshipped Goods, and More
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Trump 2.0 Week 27 In Review: New Trade Deals with Japan & Indonesia, Stalled Talks with Canada & India, and Tense Negotiations with the EU
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Breaking Down The ‘One Big Beautiful Bill’ and What It Means For Manufacturers and Distributors
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Section 232 Tariffs: What They Are, Implications for Manufacturers & Distributors, & How Veryable Can Help
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The Pressure That Creates Progress: Why Those Who Move First Win the Most
The companies that adapt first don’t just survive; they capture market share, drive innovation, and cement themselves as leaders. Those that hesitate become irrelevant, outpaced, or acquired by the competition.
Looking For Specific Guidance?
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.