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Opportunity-Rich 2025 Is Not Without Concerns

Stephanie Salmon

n January, AFS welcomed the members of the House and Senate, providing Congress with a message about the importance of U.S. metalcasting to the economy, national security, and energy sector. 

“There are tremendous opportunities awaiting the 119th Congress and the Trump administration to ensure economic growth, adopt sound tax policies, combat unfair foreign trade practices, adopt smart regulatory policies, and address our nation’s energy and workforce needs,” said AFS CEO Doug Kurkul. The U.S. metalcasting industry is comprised of nearly a half million workers with $50 billion in sales. 

AFS will be conducting in-person meetings on Capitol Hill to educate lawmakers and serve as a resource on the society’s pro-metalcasting policy priorities. In addition, we will be working with our membership to host some of the more than 70 new lawmakers for foundry tours to demonstrate firsthand how metal castings are made and the key sectors we supply. 
Be sure to attend the AFS Washington Fly-In on June 10-11, because building relationships with our elected officials is one of the most important things we can do as an industry to advocate for the issues and policies that can help us better serve our customers and the economy.

Trump Signals Tariff Hikes Targeting China, Canada, Mexico

On November 25, president-elect Donald Trump posted his plans on social media to impose substantial tariffs on goods from China, Mexico, and Canada through executive action.  

Trump has indicated that, effective January 20, his administration would impose an additional 10% tariff on all Chinese imports and a 25% tariff on goods from Mexico and Canada. These tariffs are framed as responses to national security concerns to combat the influx of illegal drugs and undocumented individuals into the U.S. If implemented, these measures could have significant implications for metalcasters and suppliers doing business with these countries. The tariffs are also likely to prompt a reciprocal response from Canada, China, and Mexico that will impact U.S. exports to those countries.

It is likely that the new administration will rely upon the International Emergency Economic Powers Act (IEEPA), which grants the president broad authority to impose tariffs if there are concerns of a national emergency. Lower courts have given the president broad powers to impose tariffs in situations concerning foreign affairs and trade policy. 

U.S. importers of goods from Canada and Mexico may not be protected by the United States-Mexico-Canada Agreement (USMCA. While the USMCA provides free trade between the U.S., Canada, and Mexico, it allows parties to impose additional tariffs under certain conditions. The new administration will likely rely on this provision to impose the proposed additional tariffs. The terms of the USMCA are up for their periodic review in 2026, and many questions remain, such as: whether there will be more targeted tariffs to protect more vulnerable sectors; will there be an exclusion process and what will that look like; will Mexico, Canada, and China respond with retaliatory efforts and of what types.

In the past, Trump has deployed threats of tariffs as a negotiating tool as well as part of a broader strategy to effect compliance and cooperation in foreign affairs. Nevertheless, metalcasters should conduct risk assessments now to understand the potential impact of these tariffs on their operations, as well impacts of Chinese transshipments/circumvention of castings. AFS will continue to be engaged with the membership, congressional lawmakers and new Trump trade officials on the wide variety of trade issues impacting the U.S. metalcasting industry.

AFS Members Score Victory on Water Front

In December, Congress approved an AFS-supported bipartisan water resources legislation, the Water Resources Development Act of 2024, S. 4367. The bill authorizes new ports, waterways, flood protection, and ecosystem restoration projects around the country, while making constructive policy changes at the Army Corps of Engineers. 
The projects also deliver national benefits to strengthen global competitiveness and supply chains, grow the economy, move goods throughout the country, protect communities from flooding, and more. They will all require extensive use of castings.