Strengthening US competitiveness through a renewed USMCA


Introduction

One of the most consequential economic achievements of President Donald Trump’s first term, the United States–Mexico–Canada Agreement (USMCA), modernized North American trade and secured enforceable commitments from Canada and Mexico to support American workers and strengthen U.S. manufacturing. The agreement established robust intellectual property protections, cutting-edge digital trade rules, expanded market access in key sectors, and strengthened rules of origin to ensure that the benefits of preferential trade accrue to North American producers. Extending USMCA this year and restoring duty-free treatment for all qualifying goods—while aligning with Mexico and Canada on policies to strengthen economic security—will be essential to preserving supply chain resilience, sustaining U.S. economic growth, and strengthening America’s competitive position against China in critical industries.

Benefits of the trilateral agreement

The USMCA has delivered measurable benefits for the U.S. economy. Trade with Canada and Mexico now supports more than 13 million American jobs across manufacturing, agriculture, and services. Since USMCA entered into force, Canada and Mexico have invested hundreds of billions of dollars in the United States, reinforcing integrated North American supply chains and driving regional trade to nearly $2 trillion in goods and services annually. Together, Canada and Mexico purchase more U.S. manufactured goods than the next dozen U.S. trading partners combined and represent the top export markets for U.S. agricultural products.

Maintaining USMCA as a trilateral agreement is essential to preserving the United States’ economic advantage in North America because key sectors of the U.S. economy depend on deeply integrated supply chains. In 2024, more than half of U.S. manufacturing trade with Canada and Mexico occurred between related parties, reflecting deeply integrated production systems, particularly in sectors such as automotive manufacturing, where components cross borders multiple times before final assembly. Consistent with this integration, the U.S. International Trade Commission estimates that the United States received roughly 80% of vehicle manufacturing investment in the USMCA region between 2019 and 2023.

Strategic importance

During President Trump’s second term, USMCA has taken on increased strategic importance. As global trade has become more fragmented, the agreement has provided a stable economic foundation for North American firms and workers, while strengthening supply chain resilience and reducing reliance on China and other non-market economies.

The upcoming review of the agreement presents an opportunity for the administration to deepen cooperation on shared challenges and to align more closely in response to the policies and practices of non-market economies, including China, that undermine fair competition and market-based investment.

The parties should use existing USMCA mechanisms, including the Competitiveness Committee, and work closely with the private sector to improve alignment on export controls, investment screening, critical minerals supply chains, trusted technologies, and excess capacity. For example, the partners could strengthen information-sharing and coordination on foreign investment review to ensure that subsidized or state-directed investments do not exploit duty-free access to the North American market. Greater alignment would reinforce trust in integrated North American supply chains and strengthen the long-term competitiveness of the USMCA region.

USMCA-compliant trade should be duty-free

To fully realize the benefits of USMCA and sustain the competitiveness of North American supply chains, the United States must preserve the duty-free treatment that lies at the core of the agreement. Predictable, tariff-free access is not a discretionary benefit; it is the fundamental incentive that underpins investment decisions, sourcing strategies, and the integration of regional supply chains. Absent confidence that qualifying goods will move duty-free across borders, companies are less likely to invest in North America. Goods that comply with USMCA’s rules of origin should be exempt from tariffs not expressly authorized by the agreement, including those imposed pursuant to Section 232 of the Trade Expansion Act of 1962 and the International Emergency Economic Powers Act (IEEPA). Applying such measures to USMCA-compliant trade undermines the agreement’s negotiated balance, erodes its credibility, and weakens the very supply chains USMCA was designed to strengthen.

Restoring and maintaining duty-free treatment for all USMCA-compliant goods would reinforce sourcing and investment within North America, reward adherence to high-standard trade rules, and support the agreement’s built-in mechanisms for ongoing cooperation and improvement. Canada and Mexico have demonstrated a willingness to align with U.S. efforts to address non-market policies and practices of third countries, including through coordinated approaches on products subject to Section 232 measures, such as steel and aluminum. Preserving tariff-free treatment within USMCA is therefore not only economically sound, but strategically essential to building a cohesive North American response to global trade distortions.

Conclusion

Ultimately, USMCA remains a critical driver of success for the U.S. business community. The trilateral agreement enables American businesses to compete more effectively against non-market economies while securing supply chains for critical industries. To preserve these advantages, the United States should confirm its intent to extend USMCA this year and fully restore preferential trade among the parties.

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Amidst New Round of Scrutiny, Are Tariffs Working for U.S. Manufacturing?


On Feb. 20, the Supreme Court ruled that President Donald Trump exceeded his authority when he imposed sweeping tariffs on imports from nearly every U.S. trading partner. 

Early last year, Trump invoked the International Emergency Economic Powers Act of 1977 to set tariffs on imported goods from more than 100 countries. Although the statute does not mention the word “tariffs,” Trump claimed that it allowed him to unilaterally impose the duties without congressional approval.

Under the act, the president has the authority to take certain steps in response to a national emergency to “deal with any unusual and extraordinary threat” to “the national security, foreign policy or economy of the United States.” That includes the power to “regulate” the “importation” of foreign property. Past presidents have relied on that language to place sanctions or embargoes on other countries, but not to impose taxes. The Trump administration argued that phrase also gives the president the power to levy tariffs.

The Supreme Court disagreed. Writing for the majority, Chief Justice John G. Roberts Jr. said that statute does not authorize the president to impose tariffs. “The president asserts the extraordinary power to unilaterally impose tariffs of unlimited amount, duration, and scope. In light of the breadth, history, and constitutional context of that asserted authority, he must identify clear congressional authorization to exercise it,” the chief justice wrote.

Not one to be deterred, Trump immediately invoked a new law—the Trade Act of 1974—to impose a flat 10 percent tariff on imports. That went into effect Feb. 24, but it expires in July unless Congress extends it. The administration is also investigating the applicability of other laws that target unfair trading practices and national security threats.

Under the new tariff regime, some countries, such as Colombia, Argentina, Australia and the U.K., will see higher tariffs. Some countries, including China, India, Thailand, Brazil, South Africa, Canada and Mexico, will see a lower rate. And other countries, including Japan, South Korea, and the Europe Union, won’t see any change in tariffs.

Although the new tariffs are lower than what Trump had initially imposed, consumers are unlikely to see any benefit. Many companies will be reluctant to lower prices once consumers have gotten used to them.

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The Supreme Court decision left uncertain the extent to which those who paid tariffs might be able to obtain refunds. On Feb. 23, FedEx filed suit in the U.S. Court of International Trade to demand a refund of the tariffs. FedEx is likely to be joined by many other large corporations demanding refunds. Dozens of companies filed lawsuits against the tariffs before the Supreme Court’s ruling.

Litigation aside, there’s little evidence that Trump’s tariffs are working, regardless of their legal underpinnings. In imposing tariffs, Trump said his goal is to reduce the trade deficit and spur more manufacturing in the United States. One year into his second term, neither goal has been achieved. In fact, the opposite occurred.

From January 2025 to January 2026, the U.S. lost 83,000 manufacturing jobs, according to the latest data from the Bureau of Labor Statistics.

What’s more, U.S. imports grew last year, and the trade deficit in goods hit a record high. The total trade deficit, including trade in both goods and services, shrank slightly in 2025, as growth in exports narrowly outpaced growth in imports. But that was entirely the result of an expanding trade surplus in services. The trade deficit in physical goods grew.

Overall imports of goods and services increased 4.7 percent, to $4.3 trillion, in 2025, while exports rose 6.2 percent, to $3.4 trillion. The trade deficit—the amount by which imports exceed exports—was $901 billion, down from $903 billion in 2024.

Tariffs did lead to shifts in the countries with which the United States trades. Imports of goods from China tumbled nearly 30 percent, to their lowest level since 2009. However, U.S. exports to China fell by nearly as much. The goods trade deficit with China shrank to $202 billion in 2025, the smallest in more than two decades, and for the first time, it was smaller than our deficit with the European Union.

But as Americans bought less from China, they bought more from the rest of the world. Our trade deficits with Vietnam, Mexico, India and other countries were the largest on record.

In short, Trump’s tariffs did not reduce U.S. imports, they merely rerouted them. And, U.S. consumers are stuck with higher prices.

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Holland, Ohio Factory Employees Achieve Historic U.S. Manufacturing Milestone


Clarios Team Produces 50 millionth Advanced Car Battery for U.S. Customers

Holland, Ohio, March 04, 2026 (GLOBE NEWSWIRE) — Clarios employees at the company’s Toledo factory, located in Holland, Ohio, recently celebrated a significant U.S. milestone that underscores the strength of American manufacturing and innovation: the production of the 50-millionth Absorbent Glass Mat (AGM) battery at the facility.

Advanced AGM batteries start and power cars and trucks, delivering superior performance compared to traditional car batteries. AGM batteries are engineered to meet the rapidly growing electrical demands of modern vehicles. They support essential systems such as advanced safety features, connectivity technologies, advanced driver assistance system functions, and the increasingly complex electronic architectures found across today’s vehicle platforms. AGM batteries are difficult to produce but remain in high and growing demand.

Plant Director John Dimos credited the achievement to the dedication and ingenuity of the Toledo workforce. “Our Toledo employees power the innovation and excellence driving our growth,” said Dimos. “Their hard work made this 50-million-battery milestone possible. Toledo is a shining example of our commitment to making batteries in America – by Americans – for Americans.”

Since opening in 1981, the Clarios Holland/Toledo factory and its employees have been a cornerstone of U.S. battery production, producing millions of starting batteries and high-performance AGM batteries for the American automotive market. In fiscal year 2025 alone, the plant produced more than 6 million AGM batteries for American automakers and consumers.

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Building on this momentum, the factory will soon begin manufacturing a new low-antimony AGM starter battery designed to support U.S. critical mineral independence and strengthen domestic supply chains.

Over the past 14 years, the Holland facility has been one of Clarios’ largest U.S. investment sites, with nearly $300 million dedicated to enhancing and modernizing the plant’s manufacturing capabilities. During this period, the plant has also expanded its workforce by nearly 75% and now employs more than 700 people in the greater Toledo area. These long-term investments underscore Clarios’ commitment to strengthening domestic battery production and supporting high-quality manufacturing jobs in the United States.

“I’m excited for the future,” Dimos added. “We have an opportunity to build on our history of success, further enhance a factory that supports workforce flexibility and work-life balance, and create a legacy we can be proud of.”

Beyond its manufacturing achievements, the Holland facility maintains a strong presence in the community through long-standing partnerships across the greater Toledo region. Clarios employees actively support organizations such as the Toledo Regional Chamber of Commerce, the Safety Council of Northwest Ohio, the Cherry Street Mission, United Way, the Toledo Mud Hens, the Toledo Walleye, the Ronald McDonald House of Northwest Ohio, and multiple local veterans’ initiatives. These commitments reflect the plant’s deep roots in the community and its role in helping strengthen the region far beyond the factory walls.

About Clarios

Clarios is the global leader in advanced, low-voltage battery technologies for mobility. Our batteries and smart solutions power nearly every type of vehicle and are found in 1 of 3 cars on the road today. With around 18,000 employees in over 100 countries, we bring deep expertise to our Aftermarket and OEM partners, and reliability, safety, and comfort to everyday lives. We answer to the planet with a rigorous sustainability focus, advancing best-in-class sustainability practices and advocating for them across our industry. We work to ensure 100% of our products sold are recyclable, and we recycle 8,000 batteries an hour in our network.

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Assessing the Impacts of Foreign Pollution on U.S. Public Health and Manufacturing • Bipartisan Policy Center


Executive Summary

Major economies like China and India emit more pollution than the United States to produce the same value of goods. High-altitude winds carry this foreign pollution long distances to U.S. shores, damaging America’s air quality. Foreign-produced pollution elevates West Coast ozone levels by up to 20% seasonally, while particulate matter produced abroad causes an estimated 8,000 premature deaths and over $60 billion in health care costs in the United States annually.

Meanwhile, foreign pollution has contributed to “nonattainment” designations in at least 85 U.S. counties, meaning these areas fail to meet federal air-quality standards in part because of foreign-produced pollutants. This status forces states to tighten pollution controls to maintain healthy air quality, which can delay industrial permits and limit manufacturing operations even for low-polluting firms. The United States currently lacks a legal framework to exclude routine foreign pollution from nonattainment designations, but creating new exemptions would weaken air-quality protections to the detriment of public health. Additional policy solutions are needed to address foreign pollution at its source, such as investment in intercountry pollution monitoring to better understand the scope of the problem and targeted pollution tariffs to encourage improved environmental practices abroad.

Introduction

Shifts in global manufacturing have concentrated industrial production in economies with lax environmental standards and enforcement. In many instances, foreign companies leverage government policies to subsidize and expand industries that depend on outdated, low-cost, environmentally irresponsible practices.[1] This undercuts U.S. manufacturers that maintain higher environmental and labor standards, which has a compounding effect on American jobs, U.S. national security, and the planet’s climate.[2]

This issue brief shows how foreign pollution threatens U.S. public health and manufacturing directly. Winds sweep foreign-produced air pollutants, distinct from greenhouse gases (GHGs), across oceans and continents into America’s atmosphere.[3] These intrusions contribute to respiratory, cardiovascular, and neurological diseases, which have been linked to premature deaths across the country.[4]

Moreover, foreign pollution constrains American manufacturing by filling up maximum pollution thresholds. The Environmental Protection Agency (EPA) designates certain geographic areas as being in “nonattainment” when they do not meet federal air quality standards for specific pollutants under the Clean Air Act. When foreign pollution contributes to a county receiving a nonattainment designation, it unfairly restricts American industry by curbing manufacturing activity and blocking permits for new industrial facilities.

This issue brief examines the multifaceted effects that foreign pollution has on U.S. environmental and economic security. It evaluates the sufficiency of existing domestic countermeasures and recommends policies that could reduce foreign pollution levels at the source—long before foreign pollutants arrive in the United States. For more on the scale of foreign pollution relative to U.S. levels and its pathways into the U.S. atmosphere, see Appendix I and II.

Impacts of Foreign Pollution on the United States

When major manufacturing hubs abroad operate without sufficient environmental standards, the consequences are global. Foreign pollution is a problem that harms American citizens directly.

Table 1. Estimated Annual Impacts of Foreign Pollution on the United States

ImpactEstimated Number (annual)Specific CausePremature Deaths8,000Breathing of particulate matter pollutionHealth Care Costs$60BIncreased medical expenses, rehabilitation, prescription medications, lost wagesCounties with Nonattainment Designations85+Western U.S. counties affected by foreign pollution and designated as being in nonattainment

Sources: Nature[5], NRDC[6] , and EPA[7]

Threat to Public Health

Foreign pollution exacts a heavy toll on America’s public health. Trans-Pacific ozone and particulate matter from Asian sources contribute to thousands of premature deaths annually in the Western United States, alongside nonfatal respiratory, cardiovascular, and neurological illnesses.[8] The EPA links elevated levels of ozone, black carbon, and carbon monoxide to adverse outcomes, including heart attacks, asthma exacerbation, lung damage, and premature mortality.[9]

Overall, air pollution in the United States imposes health and economic costs exceeding $800 billion annually,[10] with foreign-sourced contributions representing a portion that disproportionately affects vulnerable border and coastal communities. For example, estimates suggest that foreign-produced pollution causes more than $60 billion in U.S. health care costs per year.[11]

Threat to Manufacturing

Under the Clean Air Act, states must meet National Ambient Air Quality Standards (NAAQS) for six criteria pollutants, including ozone and particulate matter. [12] This means that foreign pollution can limit American companies even on American soil, if the levels of a particular pollutant are near or exceed the NAAQS in the area where the company operates.

At least 85 counties impacted by Chinese pollution are in nonattainment for criteria pollutants,[13] meaning that they do not meet federal air-quality standards. This status can block industrial permits and inhibit manufacturing growth, even for U.S. firms that operate with low levels of pollution, by requiring states to adopt and enforce State Implementation Plans to lower pollution levels.[14] This “exported nonattainment” from other countries stifles economic activity in border and Western states, exacerbating job losses due to high-polluting competitors abroad.[15] Recent nonattainment designations leading to tighter restrictions, such as in Phoenix-Mesa, AZ, explicitly cite international pollution as a factor in pushing local air-quality levels above federal standards.[16]

Gaps in U.S. Law for Foreign Pollution and the Public Health Consequences of Weakening Standards

Current U.S. law limits the ability to exclude routine foreign pollution from nonattainment designations,[17] and for good reason. Attempts to create additional exceptions for these foreign pollution sources would endanger American public health because they would increase domestic pollution levels overall.

No Mechanism Exists to Exclude Persistent Foreign Pollution

Existing legal frameworks provide little relief for the contribution of foreign pollution to nonattainment designations. The Cross-State Air Pollution Rule (CSAPR), for instance, targets domestic interstate pollution by requiring 28 Eastern states to cut power plant emissions of sulfur dioxide (SO₂) and nitrogen oxides (NOx)—but it entirely ignores foreign sources.[18] This lapse leaves trans-Pacific or cross-border contributions unaddressed despite their role in exacerbating nonattainment across the country.

 The “exceptional events” rule under the Clean Air Act does allow states to submit a request to exclude certain pollution events from nonattainment calculations. This exception, however, is designed only for “exceptional events”: pollution from natural events like wildfires or human-caused activities that are unlikely to reoccur.[19] Routine pollution from foreign sources does not qualify.

Exclusions for Foreign Pollution Could Endanger Public Health

Despite the potential benefits for domestic manufacturing, carve-outs for persistent foreign pollution would come at a cost to public health. If foreign pollution is excluded from nonattainment designations, the result would be higher acceptable levels of pollution in the United States. Maintaining healthy pollution levels is critical to protect Americans from harmful overexposure to pollutants. As a result, reforms to existing standards are insufficient to address the full scope of the problem.

A more targeted approach is needed to reduce foreign pollution before it occurs, balancing the protection of American public health with the best interests of U.S. manufacturing.

Conclusion and Policy Recommendations

Foreign pollution is a danger to American lives, jobs, and the economy. Mitigation will require an increased ability to evaluate foreign pollution and action to lower high pollution levels at their sources. To accomplish this goal, U.S. domestic policy should:

  1. Invest in Pollution Monitoring: Allocate resources for advanced monitoring of transboundary pollutants, including through satellite networks, to better understand the scope of the problem.
  2. Leverage Trade Tools: Impose border pollution adjustments or pollution tariffs on imports to encourage improved pollution control abroad.
  3. Promote Clean Tech Exports: Incentivize U.S. exports of low-pollution and pollution-control technologies to countries with outdated, inefficient equipment.
  4. Pursue Targeted Diplomacy: Prioritize bilateral agreements with key polluters (e.g., U.S.-China-Mexico), ensuring that these agreements target high-impact pollutants, such as particulate matter.
  5. Integrate Metrics Into Trade Agreements: Embed foreign pollution metrics and standards into international agreements.

If implemented, measures that pursue these objectives could level the playing field for clean producers in the United States, protect public health from harmful foreign pollutants, and mitigate the threat of foreign pollution to domestic manufacturing.

Appendix

I. Relative Pollution Abroad Far Exceeds U.S. Levels

Most major economies, particularly those engaged in noncompetitive industrial practices like China, emit far higher levels of pollution than the United States relative to their economic output. For instance, compared with U.S. producers, Chinese manufacturers emit approximately four times more nitrogen oxide (NOx), six times more particulate matter (PM2.5), seven times more sulfur dioxide (SO2), and 19 times more carbon monoxide (CO) to produce the same value of goods (see Figure 1). The EPA sets limits on domestic levels of all four of these gases, classified as “criteria pollutants,” due to their harmful effects on human health and the environment.

Figure 1. Pollution intensity for the U.S., China, and India

Source: Climate Leadership Council[20]

China is the largest global polluter, accounting for about 56% of the world’s coal use.[21] In addition to releasing 32% of global greenhouse gas (GHG) emissions, China contributes a high percentage of the world’s non-GHG pollution.[22]

Poor air quality resulting from inadequate regulation of these pollutants has led to up to 2 million premature deaths per year in China.[23] In the past, enforcement of environmental standards in China has been largely left to local government officials. For example, environmental inspectors in northern China investigated 20,000 businesses in 2017 and found that 70% failed to meet standards for air pollution control.[24] Companies were emitting more than their reported quantities, operating with insufficient pollution control equipment, and operating in unauthorized locations.

India presents a comparable challenge. Unregulated industrial practices contribute to high levels of criteria pollutants in India,[25] while the country continues to rely on pollution-intensive coal to generate 70% of its electricity.[26] Compared to U.S. producers, Indian manufacturers emit approximately 7 times more nitrogen oxide (NOx), 13 times more carbon monoxide (CO), 21x more particulate matter (PM2.5), and 35 times more sulfur dioxide (SO2) to produce the same value of goods (see Figure 1).

Poor air quality in India results in 1.67 million premature deaths annually[27] and economic losses of $36.8 billion from declines in health and productivity.[28] In northern India, inspections frequently reveal factories operating with inadequate pollution controls, mirroring pollution enforcement challenges in China.[29]

Disparities in pollution levels, as showcased by China and India, not only fuel disproportionate increases in global emissions but also result in significant non-GHG pollution that is exported directly to the United States.

II. Foreign Pollution Affects U.S. Air Quality

Pollutants produced abroad infiltrate the atmosphere over the United States via long-range atmospheric transport—high-altitude winds that carry pollutants over oceans and continents alike.[30] Air pollutants can be carried thousands of miles, from the mercury emitted by coal-burning power plants abroad to the particulate matter and sulfur dioxide that steel plants emit when they do not properly dispose of waste.[31]

Although most research on long-range pollution movement was conducted in the 2000s and early 2010s, trends strongly indicate that pollution from countries like China continues to affect U.S. air quality. Chinese coal use, for example, increased by roughly 20% between 2010 and 2022.[32]

Atmospheric modeling shows that prevailing westerly winds and jet streams enable trans-Pacific movement of pollutants from Asia to America’s West Coast, while pollution from Canada and Mexico affect air quality in U.S. border states.[33] Fluctuations in wind patterns throughout the year create seasonal peaks in the spring.

Examples

  • Ozone: Ground-level ozone forms when pollutants such as nitrogen oxides (NOx) and volatile organic compounds (VOCs) react with sunlight. Models have found that ozone pollutants transported across the Pacific Ocean from Asia add an average of 5-7 parts per billion by volume (ppbv) to surface ozone levels in the Western United States and 2-5 ppbv to levels in the Eastern United States (see Figure 2).[34] For comparison, the EPA’s health-based standard for ozone levels is capped at 70 ppbv.[35] During seasonal peaks in the spring, concentrated plumes of ozone from Asia can contribute 8-15 ppbv, accounting for up to 20% of total permitted ozone levels in certain U.S. states.[36]  Roughly half of these transported ozone emissions come from China.[37]

Figure 2. Illustration of how Asian pollution increases ozone concentrations over different parts of the U.S. within a sample one-month period.

Source: Atmospheric Chemistry and Physics [38]

  • Other pollutants: Fine particles like sulfates and black carbon from Asian industrial production and biomass burning affect California, Oregon, Washington, and similar states. Trans-Pacific aerosols contribute 6%–18% of U.S. black carbon and up to 36% of particulate matter (PM₂.₅) in affected areas.[39] Asian coal plants emit mercury that circulates globally, contributing 14%–17% to U.S. mercury levels.[40] Chinese pollution also adds 8%–28% to Western U.S. levels of sulfur dioxide and 9%–14% to levels of carbon monoxide.[41]

[1] Joseph S. Shapiro and Reed Walker, “Why Is Pollution from U.S. Manufacturing Declining? The Roles of Environmental Regulation, Productivity, and Trade,” American Economic Review, 108(12): 3814-3854, December 2018. Available at: https://www.aeaweb.org/articles?id=10.1257/aer.20151272.

[2] Catrina Rorke, Scott Nystrom, and Daniel Hoenig, “America’s Carbon Advantage 2025,” Climate Leadership Council, March 2025. Available at https://clcouncil.org/report/americas-carbon-advantage-2025/.

[3] NASA Jet Propulsion Laboratory, “Nature, Chinese Pollution Offset U.S. West Ozone Gains,” August 10, 2015. Available at: https://www.jpl.nasa.gov/news/nature-chinese-pollution-offset-us-west-ozone-gains/?referrer=grok.com.

[4] Environmental Protection Agency, “Health Effects of Ozone Pollution.” Available at: https://www.epa.gov/ground-level-ozone-pollution/health-effects-ozone-pollution; Environmental Protection Agency, “Particle Pollution and Respiratory Effects.” Available at https://www.epa.gov/pmcourse/particle-pollution-and-respiratory-effects.

[5] Estimate for the annual premature deaths comes from Qiang Zhang, Xujia Jiang, et al., “Transboundary Health Impacts of Transported Global Air Pollution and International Trade,” Nature, 543(7647): 707, Figure 2a, 2017. Available at: https://www.nature.com/articles/nature21712.

[6] The estimate for annual health care costs is based on the valuation of premature deaths, productivity losses, and medical costs in “The Costs of Inaction: The Burden of Climate Change on Health,” Natural Resources Defense Council, 4, 2021. Available at: https://www.nrdc.org/sites/default/files/costs-inaction-burden-health-report.pdf. BPC multiplied NRDC’s numbers by the number of deaths attributed to foreign pollution specifically by Qiang Zhang, Xujia Jiang, et al., “Transboundary Health Impacts…,” Nature, pg. 707, Figure 2.a.

[7] Estimates for foreign-impacted nonattainment designations stem from authors’ calculations using Environmental Protection Agency, “Green Book: Nonattainment Areas for Criteria Pollutants; Clean Air Fund,” 2025. Available at: https://www.epa.gov/green-book.

[8] Environmental Protection Agency, “Health Effects of Ozone Pollution;” Available at: https:// www.epa.gov/ground-level-ozone-pollution/health-effects-ozone-pollution.

[9] Environmental Protection Agency, “Health Effects of Particulates and Black Carbon.” Available at: https://www.epa.gov/sites/default/files/2014-05/documents/health-effects.pdf.

[10] Natural Resources Defense Council, “The Costs of Inaction: The Burden of Climate Change on Health,”, 2021, Available at: https://www.nrdc.org/sites/default/files/costs-inaction-burden-health-report.pdf.

[11] See Endnote 6.

[12] Environmental Protection Agency, “Summary of the Clean Air Act,” 2025. Available at: https://www.epa.gov/laws-regulations/summary-clean-air-act.

[13] Environmental Protection Agency, “Green Book: Nonattainment Areas for Criteria Pollutants; Clean Air Fund,” 2025. Available at: https://www.epa.gov/green-book.

[14] Joseph S. Shapiro and Reed Walker, “Where is Pollution Moving? Environmental Markets and Environmental Justice,” NBER Working Paper 28389, January 2021. Available at: https://www.nber.org/papers/w28389.

[15] Ibid.

[16] “Determination of Attainment by the Attainment Date but for International Emissions for the 2015 Ozone NAAQS: PhoenixMesa Nonattainment Area,” Federal Register, 90(221): November 19, 2025. Available at: https://www.federalregister.gov/documents/2025/11/19/2025-20357/determination-of-attainment-by-the-attainment-date-but-for-international-emissions-for-the-2015.

[17] Note that there is a legal framework for factoring foreign pollution into the severity of nonattainment classification under Section 179B of the Clean Air Act. See “42 U.S.C. §7509a – International border areas,” Cornell Law School. Available at: https://www.law.cornell.edu/uscode/text/42/7509a.

[18] Environmental Protection Agency, “Cross-State Air Pollution Rule (CSAPR),” 2025. Available at: https://www.epa.gov/Cross-State-Air-Pollution.

[19] Environmental Protection Agency, “Treatment of Data Influenced by Exceptional Events; Final Rule,” Federal Register, 81(191): October 3, 2016. Available at: https://www.federalregister.gov/documents/2016/10/03/2016-22983/treatment-of-data-influenced-by-exceptional-events.

[20] Scott Nystrom, “Country-level Analysis of Traditional Air Pollution Intensity,” Climate Leadership Council, February 25, 2026. Available at: https://www.clcouncil.org/blog/pollution-intensity/.

[21] International Energy Agency, “Coal Mid-Year Update,” July 2025. Available at: https://www.iea.org/reports/coal-mid-year-update-2025.

[22] Carbon Brief, “Analysis: China’s CO2 Emissions Have Now Been Flat or Falling for 18 Months,” February 4, 2025. Available at: https://www.carbonbrief.org/analysis-chinas-co2-emissions-have-now-been-flat-or-falling-for-18-months/.

[23] Aristeidis K. Georgoulias, Jos Lelieveld, et al., “Avoided Mortality by Particulate Air Pollution Control Measures in China,” Science of the Total Environment, 2025. Available at: https://www.sciencedirect.com/science/article/pii/S0048969725022065.

[24] Xiang Bo, “Inspections find 70 pct of firms violated environmental rules,” Xinhua Net, June 11, 2017. Available at: http://www.xinhuanet.com//english/2017-06/11/c_136356860.htm.

[25] World Bank Group, “How is India Trying to Address Air Pollution?” June 5, 2024. Available at: https://www.worldbank.org/en/country/india/publication/catalyzing-clean-air-in-india.

[26] Ember, “India,” 2026. Available at: https://ember-energy.org/countries-and-regions/india/.

[27] BC News, “The human toll of air pollution in India,” Boston College2025. Available at: https://www.bc.edu/bc-web/bcnews/nation-world-society/international/air-pollution-in-inda.html

[28] World Bank, “How Is India Trying to Address Air Pollution?” 2024/2025, Available at: https://www.worldbank.org/en/country/india/publication/catalyzing-clean-air-in-india.

[29] Garvit Bhirani, “Air Pollution: CAQM orders closure of 16 industrial units in Rajasthan, Uttar Pradesh, Haryana over gross violations,” Mint, January 9, 2026. Available at: https:// www.livemint.com/news/india/air-pollution-caqm-orders-closure-of-16-industrial-units-in-rajasthan-uttar-pradesh-haryana-over-gross-violations-11767970582778.html.

[30] National Academy of Sciences, “Global Sources of Local Pollution: An Assessment of Long Range Transport of Key Air Pollutants To and From the United States,” 2009. Available at: https://nap.nationalacademies.org/resource/12743/global_sources_brief_final.pdf; Environmental Protection Agency, Total Maximum Daily Loads (TMDLs). Available at: https://www.epa.gov/tmdl/overview-total-maximum-daily-loads-tmdls.

[31] Meiyun Lin, Arlene M. Fiore, et al., “Transport of Asian Ozone Pollution into Surface Air over the Western United States in Spring,” Journal of Geophysical Research: Atmospheres, 117: 2012. Available at: https://agupubs.onlinelibrary.wiley.com/doi/full/10.1029/2011JD016961.

[32] Scott Nystrom, “Why is U.S. industry 3x more carbon efficient than China?” Climate Leadership Council, February 4, 2025. Available at: https://clcouncil.org/blog/why-is-u-s-industry-3x-more-carbon-efficient-than-china/.

[33] Charles L. Heald, Daniel J. Jacob, et al., “Transpacific Transport of Asian Anthropogenic Aerosols,” Journal of Geophysical Research: Atmospheres, 111: 2006/2025. Available at: https://agupubs.onlinelibrary.wiley.com/doi/full/10.1029/2005JD006847.

[34] Ppbv describes the number of pollutant molecules per billion air molecules.

[35] Environmental Protection Agency, “Ozone National Ambient Air Quality Standards (NAAQS).” Available at: https://www.epa.gov/ground-level-ozone-pollution/ozone-national-ambient-air-quality-standards-naaqs.

[36] O. R. Cooper, D. D. Parrish, et al., “Increasing springtime ozone mixing ratios in the free troposphere over western North America,” Nature. Available at: https://www.nature.com/ articles/nature08708, as cited in Meiyun Lin, Arlene M. Fiore, et al., “Transport of Asian Ozone Pollution into Surface Air over the Western United States in Spring,” Journal of Geophysical Research: Atmospheres, 117: 2012. Available at: https://agupubs.onlinelibrary.wiley.com/doi/full/10.1029/2011JD016961.

[37] NASA Jet Propulsion Laboratory, “Nature, Chinese Pollution Offset U.S. West Ozone Gains,” August 10, 2015. Available at: https://www.jpl.nasa.gov/news/nature-chinese-pollution-offset-us-west-ozone-gains.

[38] Figure is from p. 1630 of L. Zhang, D. J. Jacob, et al., “Transpacific Transport of Ozone Pollution and the Effect of Recent Asian Emission Increases on Air Quality in North America: An Integrated Analysis Using Satellite, Aircraft, Ozonesonde, and Surface Observations,” Atmospheric Chemistry and Physics, 8: 6117–6136, October 22, 2008. Available at: https://acp.copernicus.org/articles/8/6117/2008/.

[39] Colette L. Heald, Daniel J. Jacob, et al., “Transpacific Transport of Asian Anthropogenic Aerosols and Its Impact on Surface Air Quality in the United States,” Journal of Geophysical Research: Atmospheres, 111: July 22, 2006. Available at: https://agupubs.onlinelibrary.wiley.com/doi/full/10.1029/2005JD006847; OL. Hadleyet al., “TransPacific transport of black carbon and fine aerosols (D < 2.5 μm) into North America,” Journal of Geophysical Research: Atmospheres, 112: 2007. Available at: https://agupubs.onlinelibrary.wiley.com/doi/full/10.1029/2006JD007632; Zhiyuan Hu, Jianping Huang, et al., “TransPacific Transport and Evolution of Aerosols: Spatiotemporal Characteristics and Source Contributions,” Atmospheric Chemistry and Physics, 19: 12709–12727, 2019. Available at: https://acp.copernicus.org/articles/19/12709/2019; Junfeng Liu, Denise Leonore Mauzerall, and Larry W. Horowitz, “Evaluating inter-continental transport of fine aerosols: (2) Global health impact,” Atmospheric Environment, 43(28: 4339–4347, 2009. Available at: https://collaborate.princeton.edu/en/publications/evaluating-inter-continental-transport-of-fine-aerosols2-global-h/.

[40] Sarah A. Strode, Lyatt Jaeglé, et al., “TransPacific transport of mercury,” Journal of Geophysical Research: Atmospheres, 113: August 7, 2008. Available at: https://agupubs.onlinelibrary.wiley.com/doi/full/10.1029/2007JD009428; ScienceDirect, “Export of Atmospheric Mercury from Asia,” 2025. Available at: https://www.sciencedirect.com/science/article/abs/pii/S1352231005001159.

[41] David Kirby, “Made in China: Our Toxic, Imported Air Pollution,” Discover, March 17, 2011. Available at: https://www.discovermagazine.com/made-in-china-our-toxic-imported-air-pollution-3125.  

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Rubio Speaks to Press on U.S. Strategy in Iran · The Floridian


Rubio Clarifies U.S. Strategy in Iran, Emphasizing Missile Manufacturing

Following a closed-door briefing with Congressional leaders over “Operation Epic Fury” and the conflict with Iran, Secretary Rubio spoke to the press to elaborate on the U.S. military campaign, expressing hope for a future led by the Iranian population.

“The United States is conducting an operation to eliminate the threat of Iran’s short-range ballistic missiles and the threat posed by their navy, particularly to naval assets,” Secretary Rubio told the press. ” That is what it is focused on doing right now and it’s doing quite successfully. I’ll leave it to the Pentagon and the Department of War to discuss the tactics behind that and the progress that’s being made. That is the clear objective of this mission.”

Secretary Rubio asserted that one of the reasons for the preemptive airstrikes was that the U.S. would’ve been a primary target had it been Israel or another nation that attacked Iran first. He informed the press that the orders to target the U.S. had been issued to Iran’s field commanders, revealing that within an hour of the attack on Iranian Supreme Leader Ayatollah Ali Khamenei’s compound, missile forces in the north and south of Iran had been “pre-positioned” and “activated to launch.”

When asked if the administration had any information regarding the airstrike at an all-girls’ school in Iran that is reported to have killed at least 153 people — mostly children — and which was said to be an American missile, Secretary Rubio commented that “the United States would not deliberately target a school.”

“Our objectives are missiles, both the ability to manufacture them and the ability to launch them, and the one-way attack drones. That would be our focus, and that’s what we would be focused on,” Secretary Rubio responded. “We would have no interest, and frankly no incentive, to target civilian infrastructure. The Iranians are, on the other hand, targeting civilian infrastructure. You guys have seen it. I’m sure you’ve seen it. They’re hitting hotels. They’re hitting embassies. They’re hitting airports.  They’re hitting oil infrastructure.”

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Trump tariffs creating fewer manufacturing jobs


This article first appeared in Forum, The Edge Malaysia Weekly on March 2, 2026 – March 8, 2026

President Donald Trump has shaken up the world economy and the rule of international law in the first year of his second term — ostensibly to make America great again, particularly by reviving US manufacturing jobs.

The president has assumed authority from the US Congress to wage war, impose taxes, make treaties, set budgets, regulate federal-state relations and more.

Tariffs

Trump’s April 2, 2025 “Liberation Day” tariffs were ostensibly his primary means to generate manufacturing employment.

When the US Supreme Court overruled him on Feb 20, he responded by imposing a 10% tariff on all imports, which he raised to 15% the next day.

The tariffs are a blunt means for reviving US manufacturing jobs. The policy assumes US manufacturing jobs have been mainly lost due to what the White House deems “unfair” competition from cheap imports.

Undoubtedly, US and other transnational corporations have relocated production and generally sourced imports from abroad to reduce import costs.

Imposing tariffs on imported goods to raise their prices is supposed to induce manufacturers to relocate production and jobs to the US.

Higher tariffs were imposed on countries with larger goods trade surpluses with the US. This ignores the services trade balance, generally more favourable to the US.

Tariff threats are now among the Trump administration’s choice weapons or means of economic coercion, including sanctions, to advance and secure its interests.

Revenue

The president claimed trillions of dollars in additional tariff revenue for the Treasury from foreign exporters to fund his massive military spending hike.

But only US$264 billion was collected during Trump 2.0’s first year, much higher than before, but still less than 1% of US federal debt.

Tariff revenue peaked in October 2025 at US$31.35 billion, well below expectations, months before the Supreme Court decision.

The Kiel Institute for the World Economy found only 4% of tariffs “absorbed” by foreign exporters losing some export earnings. US importers paid the 96% balance of US$264 billion in tariffs, weakening the impact of Trump’s business tax cuts.

But Trump’s tariffs have not reduced the US trade deficit, not even for manufacturers; this rose to US$1 trillion in 2025, as US$3.15 trillion in imports exceeded US$2.15 trillion in exports.

Although mortgage and loan interest rates have not fallen, inflation continues. The additional tariff revenue would not even have covered the extra military budget Trump has promised.

Congress could have reclaimed its tariff authority, though the current Trump-dominated House of Representatives has not tried.

But with the November midterm elections looming, Forbes reported that the president’s disapproval rating rose to 55% in mid-February, as fewer are confident his administration prioritises curbing inflation.

Financialisation

The US federal debt, around US$39 trillion (RM151 trillion), now requires over US$1 trillion in annual debt servicing from the US$7 trillion annual budget.

Growing by US$1.5to US$2 trillion annually, this unrepayable debt is being “rolled over” for ever-shorter maturities. Hedge funds now hold 27% of US Treasuries, while foreigners, who held half in 2015, now have only 30%.

Treasury bond repurchase — or repo — agreements provide about US$4 trillion in financing daily for derivatives speculation. Another financial crash can wipe out many more trillions of often dubious “value”.

While the US economy, productive employment and research funding diminish, various bubbles of unrepayable debt are growing rapidly. Worse, so-called stablecoins and cryptocurrencies have infiltrated financial markets.

Meanwhile, some US mortgage delinquency rates have reached levels worse than in 2007/08. By the end of 2025, financial news agencies were publishing ominous reports of financial vulnerabilities.

Hundreds of billions of promised investments, coerced from other nations using tariff and other threats, will be invested in US financial asset markets but little of this will create manufacturing jobs.

Manufacturing comeback

Trump has promised to make the US a manufacturing superpower once again, leading the world in technology, computing power and military weaponry. But China leads in many — if not most — areas of recent technological advancement.

Dean Baker, co-founder of the Center for Economic and Policy Research, found the US labour market weakening over Trump 2.0’s first year.

Overall payroll growth and manufacturing jobs growth both declined from former president Joe Biden’s last year.

US manufacturing jobs have long been threatened by transnational corporate globalisation and labour-saving technical change, especially automation.

US policy in recent decades has left the private sector responsible for ensuring US industrial technology leadership and progress. Meanwhile, problems, such as poor infrastructure remain unaddressed.

Trump’s tariffs may also inadvertently reduce US jobs. Many industrial processes require imported parts, with the tariffs proving disruptive.

Trump’s policies have not created enough manufacturing jobs. The president fired his Labor Department’s statistics head in mid-2025 for not reporting enough job growth.

Nonetheless, it reported only 584,000 net new jobs for all of 2025, compared with 1.6 million in 2024, for the US labour force of 165 million.

The Wall Street Journal noted, “The manufacturing boom President Trump promised … is going in reverse.”

The Trump administration could still use the Supreme Court’s ruling to change its strategy to make America great again by drawing better lessons from US economic history and adopting a more pragmatic approach. But so far, it seems unlikely to do so.

Jomo Kwame Sundaram is currently senior adviser at Khazanah Research Institute (KRI). A former economics professor, he was United Nations assistant secretary-general for economic development. He is a recipient of the Wassily Leontief Prize for Advancing the Frontiers of Economic Thought.

K Kuhaneetha Bai studied at the University of Malaya and does policy research at KRI.

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US manufacturing grew, input costs soared before Iran attack


Published Tue, Mar 3, 2026 · 06:03 AM

[WASHINGTON] US manufacturing expanded in February but input prices soared at the fastest pace since 2022, stoking fears of an inflation resurgence even before this weekend’s attacks on Iran.

The Institute for Supply Management’s (ISM) gauge of prices paid for manufacturing inputs jumped 11.5 points to 70.5, the highest level since overall inflation peaked nearly four years ago.

The figures out Monday (Mar 2) reflected responses ahead of US and Israeli airstrikes on Iran this past weekend. The war has all but halted oil tanker traffic through the Strait of Hormuz and pushed crude prices sharply higher.

The conflict also risks tempering a nascent recovery in manufacturing. ISM’s measure of factory activity was little changed at 52.4, indicating a second month of growth at one of the highest readings in recent years. Orders and production growth remained solid.

Treasury yields rose following the report. The S&P 500 remained lower.

The group’s price gauge is likely to remain elevated or even push higher over the near-term after oil prices jumped on Monday by the most since early 2022, following Russia’s invasion of Ukraine.

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Higher energy prices represent the latest cost challenge for manufacturers. If sustained, producers may have little choice but to raise prices for their business customers and consumers.

The impact from the Middle East turmoil will depend on how the duration of the conflict and where primary materials are sourced, said Susan Spence, chair of the ISM Manufacturing Business Survey Committee.

“It really does depend on the sector and where they are importing their raw materials from,” Spence said on a call with reporters. “In general, the supply managers have yet another challenge on their hands.”

SEE ALSO

US President Donald Trump started his address by defending the US economy.

Producer price data out last week showed the cost of unprocessed goods, minus food and energy, rose more than 15 per cent in January from a year ago, the steepest annual gain since April 2022. A Bloomberg index of metals, including copper and aluminium, has also increased sharply this year.

The assortment of recent price data along with geopolitics point to a steady undercurrent of inflation for US producers, which is being partially fed by higher import duties from the Trump administration. It also explains why US Federal Reserve policymakers are in little rush to lower interest rates after three straight cuts at the end of 2025. BLOOMBERG

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When is the US ISM Manufacturing PMI data and how could it affect EUR/USD?


US ISM Manufacturing PMI Overview

The United States (US) Institute of Supply Management (ISM) Manufacturing Purchasing Managers’ Index (PMI) data for February is due for release today at 15:00 GMT.

The ISM report is expected to show that the manufacturing sector activity expanded again, but at a moderate pace. The Manufacturing PMI is at 51.8, down from 52.6 in January. Last month, manufacturing sector activity expanded for the first time after remaining below 50.0 for a straight 10 months, a figure that separates expansion from contraction.

Apart from the Manufacturing PMI, investors will also focus on sub-components of the data, such as Employment Index, Prices Paid, and New Orders Index. ISM Manufacturing Prices Paid – which reflects changes in expenditure for inputs such as labor and raw materials – is estimated higher at 59.5 from the previous reading of 59.0.

Weaker-than-projected US ISM Manufacturing PMI data would prompt expectations for interest rate cuts by the Federal Reserve (Fed), as policymakers remain concerned over the economic outlook. On the contrary, higher figures would diminish them.

How could US PMI data affect EUR/USD?

EUR/USD trades 0.75% lower at around 1.1730 at the press time. The near-term bias turns mildly bearish as spot slips below the 20-day Exponential Moving Average near 1.1800.

The 14-day Relative Strength Index (RSI) has retreated further towards 40.00 after failing to return above 60.00, indicating selling pressure at higher levels. Fresh bearish momentum would appear if the RSI breaks below 40.00.

Immediate support emerges at the trend-line break area around 1.1645, with a clear violation exposing the mid-1.15 region and then the 1.1489 origin of the uptrend. On the upside, initial resistance stands at the 20-day EMA around 1.1800, followed by the recent swing highs at 1.1880 and then the 1.2030 peak, which caps the broader bullish structure and would need to give way to negate the current corrective tone.

(The technical analysis of this story was written with the help of an AI tool.)

Economic Indicator

ISM Manufacturing PMI

The Institute for Supply Management (ISM) Manufacturing Purchasing Managers Index (PMI), released on a monthly basis, is a leading indicator gauging business activity in the US manufacturing sector. The indicator is obtained from a survey of manufacturing supply executives based on information they have collected within their respective organizations. Survey responses reflect the change, if any, in the current month compared to the previous month. A reading above 50 indicates that the manufacturing economy is generally expanding, a bullish sign for the US Dollar (USD). A reading below 50 signals that factory activity is generally declining, which is seen as bearish for USD.

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U.S. Department of War promotes defense manufacturing expansion


Key Points

  • United States Secretary of War Pete Hegseth concluded the first phase of the Arsenal of Freedom tour with visits to General Dynamics and L3Harris facilities in Arkansas promoting faster domestic defense production.
  • The Department of War used the nationwide tour to emphasize strengthening the U.S. defense industrial base and expanding workforce support tied to missile and advanced weapons manufacturing.

United States Secretary of War Pete Hegseth concluded the first phase of the Department’s nationwide “Arsenal of Freedom” tour on Feb. 27, 2026, with visits to defense industry facilities operated by General Dynamics and L3Harris in Camden, Arkansas, where he delivered remarks focused on expanding production capacity and accelerating weapons manufacturing.

The tour, organized by the United States Department of War, is intended to demonstrate federal support for the defense industrial base while urging industry and workforce leaders to increase output of military systems and modernize manufacturing practices supporting U.S. warfighters.

Speaking before more than 1,500 employees at the L3Harris facility, Hegseth highlighted the role of defense workers in sustaining military readiness.

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“Thank you for being the backbone of our department and our great nation [and] for having the backs of our warfighters because what you build right here in Camden is absolutely central to the 21st-century arsenal of freedom,” Hegseth said.

He added that the technologies produced at the site directly support advanced weapons programs.

“The technology that you build for our missiles, interceptors and hypersonic weapons is what allows the War Department to achieve peace through strength, and that mission comes with a nonnegotiable mandate from the War Department [and] straight from the Resolute Desk and President [Donald J.] Trump,” he said.

According to remarks released during the visit, Hegseth emphasized innovation and faster production timelines as core priorities of the tour. He encouraged industry partners to increase manufacturing tempo while maintaining technological advancement across defense programs.

(Photo by Alexander Kubitza)

The secretary also addressed long-standing concerns about inefficiencies within the defense industrial base, arguing that production culture must shift toward faster delivery cycles. Praising L3Harris operations in Camden, he said the company had “set the pace” for industry performance through rapid production practices.

“For far too long, our defense and aerospace industry was a giant swamp, much like Washington. … Those companies moved at a snail’s pace, led by CEOs who cared more about their stock options and golden parachutes than delivering for those on the front lines,” Hegseth said.

He further criticized earlier trends toward outsourcing defense production overseas, stating that domestic manufacturing remains central to national security priorities.

“Well, let them tell that to these great workers and these great patriots at L3,” Hegseth said during the event.

According to the Department of War, the Arkansas stop marked the conclusion of a seven-and-a-half-week first phase of the Arsenal of Freedom tour, which began Jan. 5 with a visit to a shipyard in Newport News, Virginia. The tour included additional stops in Texas, California, Rhode Island, Maine, Missouri, Florida, and Colorado.

As part of each visit, Hegseth has administered enlistment oaths to new service members. During the Arkansas stop, he swore in 40 recruits, bringing the total number of enlistees participating in ceremonies during the tour to more than 260.

(Photo by Alexander Kubitza)

The Department said the enlistment ceremonies are intended to link industrial workforce contributions with military service, underscoring the connection between manufacturing capacity and operational readiness.

In practical military terms, the facilities visited in Camden contribute components and systems supporting missile production, interceptor technologies, and hypersonic weapon development. These systems form part of layered defense architectures designed to counter aerial threats and maintain deterrence capabilities.

The Arsenal of Freedom initiative draws its name from the historical “Arsenal of Democracy,” the large-scale industrial mobilization undertaken by the United States prior to and during World War II, when domestic manufacturing was expanded to supply military equipment to Allied forces.

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Apple’s U.S. Manufacturing, AI Hardware And India Payments Plans For Investors


  • Apple (NasdaqGS:AAPL) plans a major U.S. manufacturing expansion, including Mac mini and AI server production at its Houston facility.
  • The company has outlined a US$600b supply chain investment and related workforce and upskilling efforts in the United States.
  • Apple is developing AI focused hardware such as smart glasses and camera equipped AirPods as part of a broader hardware push.
  • Apple Pay is expected to launch in India by mid 2026 with local bank partnerships and UPI integration.

For you as an investor looking at Apple, these moves touch several core pieces of the business. Apple (NasdaqGS:AAPL) still draws much of its identity from the iPhone and broader device ecosystem, and the company has been expanding services and payments alongside more powerful on device computing for AI use cases.

The new U.S. manufacturing plans and Apple Pay’s planned India launch give you additional angles to watch beyond headline product launches. Execution on domestic production, AI centric hardware and entry into a large digital payments market such as India may influence how investors think about Apple’s supply chain mix, hardware roadmap and services footprint.

Stay updated on the most important news stories for Apple by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Apple.

NasdaqGS:AAPL Earnings & Revenue Growth as at Feb 2026NasdaqGS:AAPL Earnings & Revenue Growth as at Feb 2026

We’ve flagged 0 risks for Apple. See which could impact your investment.

Quick Assessment

  • ⚖️ Price vs Analyst Target: At US$264.18 versus a consensus target of about US$293.07, the price sits roughly 10% below where analysts cluster.
  • ⚖️ Simply Wall St Valuation: The shares are described as trading close to estimated fair value based on the latest Simply Wall St model.
  • ✅ Recent Momentum: The 30 day return of about 2.3% shows modest positive momentum into this manufacturing and AI hardware news.

There is only one way to know the right time to buy, sell or hold Apple. Head to Simply Wall St’s
company report for the latest analysis of Apple’s Fair Value..

Key Considerations

  • 📊 U.S. manufacturing expansion and AI focused devices such as smart glasses and AI servers may reinforce Apple’s hardware ecosystem and potentially support future services usage.
  • 📊 Watch execution milestones on Houston production, AI hardware rollout, and Apple Pay’s India launch timing, as well as any updates on user adoption and transaction volumes.
  • ⚠️ Higher U.S. manufacturing and AI hardware investment could raise capital and operating costs if demand or scaling efficiencies do not keep pace.

Dig Deeper

For the full picture including more risks and rewards, check out the
complete Apple analysis. Alternatively, you can check out the
community page for Apple to see how other investors believe this latest news will impact the company’s narrative.

This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.
It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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