Manufacturers in some sub-sectors report that enhanced environmental rules can reduce American manufacturers’ competitiveness, increase costs and reduce employment. At least initially, the administration will focus on altering the fuel economy and emissions rules affecting vehicles that will be completed in 2022. Automakers have stated that these rules are too expensive to meet and a study by the Center for Automotive Research found that the Corporate Average Fuel Economy mandate would reduce employment in the American auto industry.
National Association of Manufacturers CEO Jay Timmons said he is upbeat on Trump’s potential to move regulatory and comprehensive tax reform. He said the tax and regulatory burden creates a 12% to 24% cost differential to manufacture in the United States.