America is having a manufacturing renaissance

OPINION:

President Trump and his administration are adjusting to changes in the global economic and strategic landscape, positioning America to remain the global military and economic leader in the face of unprecedented challenges.

The president began this work a year ago with the signing of the America First Trade Policy executive order. In December, the White House expanded its strategic view by issuing its National Security Strategy. Both are strong statements outlining a bold new direction affecting a wide range of policy disciplines and spending.

American manufacturing is a central pillar in the overarching strategy. Over the past year and in the years to come, manufacturing policies will be evaluated based on their ability to advance national economic power and support national defense. Over the past 12 months, we have made significant progress. As a result, America will experience a manufacturing renaissance in 2026.

In November, the Dallas Federal Reserve published its Texas Manufacturing Outlook Survey, showing that manufacturing activity has been positive for the past three quarters and surged more than 20 points from 2024, which is a reliable indicator of national trends. Also, the U.S. Bureau of Economic Analysis announced that the economy grew at an annualized rate of 4.3% in the third quarter of 2025, an enormous achievement.

The America First Trade Policy’s stated purpose was to promote investment and productivity, enhance industrial and technological advantages and defend our economic and national security. The following five areas play an outsize role in driving results: tariffs, fair and balanced trade, enforcement, industrial policy and macroeconomic policy.

Tariff implementation corrected years of trading partners’ unfair practices, which had driven many good U.S. companies out of business or forced them to move operations overseas. Tariffs are incentivizing the reshoring of manufacturing and increasing domestic investment. Tariffs will also spur foreign direct investment by incentivizing international companies to set up new facilities or expand existing ones in the U.S.

Fair and balanced trade through new agreements is leveraging strategic investments, fostering high-tech manufacturing opportunities and thwarting mercantilist policies of competing countries that have absorbed critical elements of American manufacturing. Our challenge will be to retain the valuable free market allocation of capital while protecting strategic elements of our manufacturing sector.

The recent trade deals with Britain and the European Union replace existing trade barriers with market-opening agreements, allowing U.S. goods to compete. Additionally, these agreements leverage greater foreign direct investment, with recent deals securing $550 billion and $350 billion, respectively, from Japan and South Korea. In 2025 alone, the administration was able to garner more than $20 trillion in investment, leveraging America’s global spending to spur industrial revitalization.

Enforcement through investigations is being conducted to ensure foreign companies do not have an unfair advantage in the U.S. marketplace. The Commerce Department’s Section 232 and the U.S. Trade Representative’s Section 301 investigations now support a fair marketplace. These investigations determine whether importing certain goods within specific sectors poses a threat to national security and then recommend remedies and measures to prevent recurrence, ensuring that both economic and national security are protected.

Using these tools gives the president options for addressing predatory actions by non-free-market economies.

Industrial policy by executive order has given clear guidance to the government and the private sector. Recent executive orders, such as investments in artificial intelligence infrastructure, energy dominance and maritime shipbuilding dominance, are core to the president’s plan. They expand industrial capacity, unlock financial incentives and streamline permitting. Collectively, these executive orders reinforce our industrial and technological advantages, which will be key to the revitalization and growth of large and complex industries.

Macroeconomic policy, such as business-friendly tax policy and lowering interest rates, is encouraging companies to allocate capital into manufacturing and machinery investments. Tax policy improvements within the One Big Beautiful Bill Act will provide tax certainty for small manufacturers by extending the 20% pass-through deduction, preserving individual tax rates, and protecting small, family-owned manufacturers from estate taxes.

The One Big Beautiful Bill Act also supports investment and innovation by restoring immediate research and development expensing, preserving the 21% corporate tax rate, and creating a deduction that allows companies to immediately expense the cost of new factories and the costs of improvements to existing facilities.

Under Mr. Trump, manufacturing output and productivity are increasing, negative trade balances are being reduced, and economic and national security are being strengthened. Guided by the America First Trade Policy and National Security Strategy, the U.S. is entering a golden era of policy certainty, manufacturing incentives, the revitalization of key industries, and a resurgence in dormant industries.

Ultimately, the America First Trade Policy and National Security Strategy are enabling America’s global competitiveness by recharging existing industries and igniting a manufacturing renaissance.

• Alex Krutz is the managing director for Patriot Industrial Partners, an industrial consulting firm. Until December, he served as the deputy assistant secretary for manufacturing at the Commerce Department, where he advanced policies in support of U.S. manufacturing.