May ’25 at-a-glance … taxes, tariffs & trade

Given the constantly changing nature of the tariff situation, NAFEM updates the Taxes, Tariffs and Trade page of nafem.org weekly. We recommend visiting this page for information and consult with your customs broker for up-to-the-minute tariff information relative to your business and its products.  

Commerce investigating security of semiconductors and related products 

The U.S. Department of Commerce opened a brief three-week comment period (April 16 – May 7) on its Section 232 investigation of the security risks of imports of semiconductors, semiconductor manufacturing equipment and their derivative products. The investigation also covers semiconductor substrates and bare wafers, legacy chips, leading-edge chips, microelectronics and manufacturing equipment components. The final report is due to President Trump Dec. 27, although the administration has stated its intent to move at a faster pace.  

Help prevent the largest tax increase in U.S. history 

If Congress fails to pass legislation to extend or make permanent the tax reform provisions from the 2017 Tax Cuts and Jobs Act, it will result in the largest tax increase in U.S. history. NAFEM joined nearly 70 trade associations in advocating for passage of pro-growth tax relief in the fiscal year 2025 budget reconciliation bills via outreach to Senate and House leaders, including: 

• Immediate R&D expensing for domestic research for 5 years, retroactive to January 1, 2025. 

• 100% full expensing for capital equipment purchases for 5 years, retroactive to January 20, 2025. 

• EBITDA standard for interest deductibility for 5 years, retroactive to January 1, 2025. 

NAFEM members can visit the NAFEM Advocacy Action Center to reach out to elected officials to also communicate how important these provisions are to your business, competitiveness and the overall U.S. economy, particularly with the uncertainty due to tariffs.