New legislation isn’t just a legal issue — it’s a supply chain issue. In this Supply Chain Byte, Lisa Anderson breaks down the ripple effect of the Big Beautiful bill for manufacturers. Lisa outlines what supply chain leaders should consider — and how to stay proactive.
Prior to the 2017 Tax Cut & Jobs Act, the U.S. was completely uncompetitive vs. China. The U.S. corporate tax rate 35% which is uncompetitive with the rest of the world and specifically China which had a tax rate of 10%, 15% or 25% depending on the specific product/ situation. Given this statistic in addition to the fact that China did not have to follow labor laws, environmental laws, finance laws, and a whole host of other regulations that the U.S. had to follow, there was no chance to be competitive in most situations. Thus, the 2017 law reduced the U.S. tax rate to 21%, which spurred economic growth and success for U.S. companies. However, that law would sunset at the end of the year if what’s known as “One Big Beautiful Bill” (OBBB) did not pass to extend the tax cuts.
Although no bills proposed by Congress are perfect, the OBBB extends these vital tax cuts to keep manufacturers more competitive according to the National Association of Manufacturers (NAM). In addition, The OBBB also further supports small manufacturers. This is important as 99% of businesses are considered small businesses with manufacturers being a core and critical component. It also supports R&D and innovation. Nothing will be more important to future success than innovation. The OBBB was passed and signed into law on July 4, 2025. To review the full scope of benefits specifically for manufacturers and supply chain organizations, refer to our upcoming blog article, “The One Big Beautiful Bill & Impacts on Supply Chain”.
As this theme is central to the current Administration, it is also part of the reasoning behind the tariffs. Tariffs are surfacing again as letters have gone out to Japan and India proposing 25% tariffs to start in August unless a deal is secured. Refer to our tariff playbook for the latest status, forecasts, and impacts on the supply chain.
What should companies be thinking? Consider advocacy. You must get involved to ensure the future success of your company as rules, regulations, and legislation are having an outsized impact on success as the world has gone global but don’t live with the same set of rules. Next, you should be scaling up. When volume hits as plants expand, investments occur, and reshoring ramps up, the companies that are prepared to serve customers will thrive. The rest will be left in the dust. Are you ready?
If you are interested in reading more on this topic:
Creating Scalability for Supply Chain Success