Executive Director Bret Manley in the Daily Wire on how the FTC’s Definition of domestically manufactured products / “Made in the USA” is Flawed.
‘Made in America’? Not Exactly. | The Daily Wire
The Trump administration appears to be all in on investing in American workers and our domestic manufacturing sector.
Just this week, the president traveled to Pittsburgh to announce a historic $90 billion investment in energy and artificial intelligence that will spur much-needed economic development after decades of manufacturing decline. The Federal Trade Commission declared July “Made in the USA” Month, pledging to educate consumers, celebrate domestic manufacturers, and crack down on the misuse of the patriotic label.
These are positive developments, but they may all be for naught. Because right now, “Made in America” doesn’t mean much of anything.
“Made in America” was once a laudable promise that stood for quality, grit, and jobs. Americans were proud to buy goods produced at home, and as recently as 2009, 65% of the products Americans bought were made by American producers.
Somewhere along the way, however, “Made in America” was hijacked by marketing departments and manipulated by corporations seeking to capitalize on patriotism while outsourcing the work overseas.
Today, “Made in America” labels are everywhere, but thanks to an ambiguous definition of the term, only 11% of goods sold in this country are actually made by American manufacturers. It’s high time that the FTC fixes its definition and works to reward companies that actually make products here.
The “Made in America” label is on everything from toolboxes to t-shirts. But take a closer look, and odds are the guts of that product were made overseas. American workers might have put the final touch on it, but should that qualify as “domestic manufacturing”?
This is a fraud on the American consumer. Worse, it’s a fraud that we’re subsidizing.
Billions in taxpayer-funded energy credits, tech subsidies, and manufacturing incentives are being awarded to companies that have figured out how to game the system. They ship in foreign components, do the bare minimum of assembly here, and collect the “Made in USA” bonus, all while undercutting the very supply chains we’re supposed to be rebuilding.
Solar panels have become the poster child for this shell game. For years, America didn’t produce a single solar crystalline cell, which is the key piece that actually converts sunlight into energy. But that didn’t stop companies from building flashy American facilities to bolt together foreign-made parts and claim the whole thing as “domestic manufacturing.” Meanwhile, jobs and genuine value are still being outsourced overseas.
The FTC says “Made in America” should mean “all or virtually all” of a product is made here. Yet in practice, there’s little enforcement and even less clarity. “Assembled in America” is a catch-all term with so many loopholes you could drive a cargo ship through it. Companies are only too happy to exploit this confusion, especially when paired with hefty tax breaks.
Every time the federal government rewards these tactics, it’s sending your hard-earned dollars abroad. We undermine American manufacturers who play by the rules. We leave our supply chains vulnerable. And we trick millions of patriotic consumers who are trying to do the right thing by buying American.
This is how the United States loses industries. Not in some sudden collapse, but by letting the definition of “American-made” get so watered down that it becomes meaningless.
In order to reward deserving companies, the FTC needs to redefine its “Made in America” standard and actually enforce it. It should mean what it says. The core components, which give a product its value, have to be sourced as well as assembled here.
The FTC should also start cracking down by doing more than merely issuing guidance. It needs to slap punitive fines on companies abusing the label and misleading consumers.
Incentives should be reworked so that clean energy credits and manufacturing subsidies are tiered. Full credit for full domestic content. Partial credit for partial effort. No more handing out taxpayer dollars for companies doing the bare minimum.
Finally, the FTC needs to give consumers transparency. Labels should clearly show where the guts of a product come from to enable Americans to make informed choices.
If Washington can’t get this right, we frankly have no business talking about rebuilding anything. “Made in America” shouldn’t be a marketing gimmick. It has to be once again a badge of honor, earned by companies that invest, hire, and build here. To restore American manufacturing, we must stop rewarding fake patriotism and start standing up for the real thing.
Bret Manley is executive director of the Energy Fair Trade Coalition. He is a retired Naval Intelligence Officer and previously worked on Capitol Hill as chief of staff to a senior member of the Congressional Climate Solutions Caucus. Follow on X: @bretmanley.
The views expressed in this piece are those of the author and do not necessarily represent those of The Daily Wire.