'Made In America' Increasingly Under Fire Due To Costs


Photo Credit: Tanya Gazdik/MediaPost

Independence Day is in the rear-view mirror, but the focus on “Made In America” is a year-long emphasis by some marketers. 

“In an era of fluctuating tariffs, does this ideal still hold significant sway for U.S. consumers?” asks Pymnts.. “And perhaps most importantly, how does it intersect with their understanding of complex economic shifts, such as the relationship between U.S. and China? The answers have implications for how consumers view pricing, retail choices and even the products they purchase.”

When given the choice between low-priced or American-made products, 39% of shoppers always or mostly value affordability, a feature associated with imports from low-cost China, according to a Pymnts report, “Consumer Tariff Sentiment: Informed Americans Are Skeptical of the Benefits. Conversely, 34% always or mostly prefer items made in the U.S., and 26% feel each matters equally.

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The “Made in America” message correlates directly to pricing expectations and the ability to meet them, according to Pymnts. 

“The May report found that while 34% of shoppers consistently prioritize American-made products, it’s notable that consumers living paycheck to paycheck are more likely to seek out U.S.-made goods (41%),” per Pymnts. “This group, along with those valuing domestic products, also tends to expect more positive impacts from tariffs. Yet, the overall picture of consumer understanding is nuanced.”

The Federal Trade Commission enforces regulations regarding "Made in USA" claims, ensuring they are truthful and not misleading to consumers. For a product to carry the label, it must be "all or virtually all" made in the U.S., meaning all significant parts and processing must originate domestically. 

“‘Made in USA’ is trending on Amazon, and sellers are leaning in,” according to Modern Retail. “According to new data from e-commerce analytics firm SmartScout, discovery-oriented searches like ‘made in USA products only’ have surged 220% year-over-year. Similarly, ‘made in America products only’ is up 130%, while more specific terms like ‘American flag made in America’ have jumped 250%.”

One item widely associated with Independence Day and other federal holidays — the American flag — is increasingly being made overseas, a flag manufacturer told Spectrum News.

“American flag retailers are working with Congress to pass the ‘Make American Flags in America Act,’ which targets online retailers that falsely claim their flags are American-made,” according to Spectrum News.

The bill is still before the Senate, where it has been referred to the committee on homeland security and governmental affairs, according to congress.gov. 

The sourcing of items used by the U.S. military has also been in the news. 

“New bipartisan legislation reintroduced in the Senate this week aims to ensure all combat boots worn by U.S. service members are manufactured entirely in the United States,” according to DefenseNews.com. “The Better Outfitting Our Troops, or BOOTS, Act has united a diverse coalition of lawmakers across the political spectrum in proposing that all U.S. military boots are produced from only American-manufactured components. That includes optional combat boots, which are authorized by commanders as an alternative to the military’s standard-issue boots.”

Automotive marketing focusing on country of origin seems to be resonating.  Analysts say Ford Motor Co.’s May sales surge indicates its made-in-America marketing is working. 

“Since January, Ford has continually beat the drum in the media about how it is the most ‘American’ car company of all with 80% of the vehicles it sells in the United States also being assembled here,” according to the Detroit Free Press.

One item whose country of origin is still TBD is the new Trump Mobile phone. Trump Mobile’s website no longer promises that its upcoming smartphone will be made in America.

“The company adjusted language on its website on or around June 22 to drop the ‘Made in USA’ claim, according to captures of the site by the Internet Archive,” according to CNN Business. “As of June 25, the company says the T1 8002 phone was ‘designed with American values in mind.’ The website previously said the phone was ‘Made in the USA,’ according to screenshots taken by CNN earlier in June and archived versions of the site from June 18.”

The Verge first reported the change. "The revised language comes after industry analysts expressed skepticism about the phone’s American origins, noting that its specifications resembled a phone made by a Chinese manufacturer.”

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