NEMA Proposes Tariff Incentives to Boost U.S. Energy & Manufacturing

The National Electrical Manufacturers Association (NEMA), joined by associations from the broader electrical and data-center industries, has released a tariff incentive proposal to accelerate the Trump Administration’s energy and domestic manufacturing priorities.  

Key points of the proposal include:

• A Capital Investment Incentive, offering tariff offsets for firms that build or expand manufacturing facilities in the U.S., valid for up to three years after those facilities become operational. 

• A Grid Infrastructure Incentive, which would offset tariffs on goods or raw materials used in building and maintaining critical power infrastructure (such as substations, distribution equipment, and data centers). 

• A Domestic Manufacturing Incentive, giving additional tariff advantages to products meeting federal domestic content standards. 

Stated in the release, "While NEMA projects U.S. energy demand will increase 50% by 2050, U.S. electrical manufacturers have invested more than $10 billion since 2021 in new technologies to expand our grid and manufacturing capacity. They have also reshored their supply chains back to the United States, reducing their reliance on materials from China by 32% since 2018. By rewarding capital investments in U.S. manufacturing capacity and grid infrastructure, providing duty compensations for manufacturers and data center developers investing in U.S. power infrastructure, and providing a bonus to manufacturers whose products comply with domestic content rules, these incentives preserve trade enforcement priorities while strengthening domestic energy and manufacturing supply chains."

Read the full release from NEMA for more information.