NEMA Senior Director of Global Policy Patrick Lozada today issued the following statement after testifying before The Office of the U.S. Trade Representative (USTR) regarding the Office’s Section 301 Investigations Relating to Structural Excess Capacity and Production in Manufacturing Sectors: 

“The $330 billion U.S. electrical manufacturing industry is at an inflection point. With electricity demand set to increase 55% by 2050, electrical manufacturers need a stable, predictable trade policy to help power America’s future. 

“The National Electrical Manufacturers Association appreciates USTR’s efforts to address the problem of structural excess capacity. Addressing this problem with broad tariffs, however, risks raising costs for downstream manufacturers, customers – and eventually utility ratepayers.  

“NEMA urges USTR to approach solutions to these structural challenges with specific solutions that target the problems they seek to address. Should the Administration choose to use tariffs, it should – in line with past practice under the first Trump Administration – balance enforcement objectives with economic realities. Specifically, we ask that USTR consider whether tariffed products support the U.S. power grid, AI infrastructure, or the manufacture of equipment essential to both – thus affecting energy affordability.  

“Such a process would help ensure that electrical manufacturers are able to help meet the growing demands on the U.S. electrical grid. Meeting those demands is foundational to ensuring that the U.S. continues to lead in AI, and making sure that new factories around America – and other economy-driving infrastructure – have access to the power that they need. 

“The U.S. electroindustry has already invested nearly $200 billion to expand domestic manufacturing capacity since 2018 and plans to invest at least $60 billion more over the next five years. A stable trade policy that reflects the realities of global supply chains and the needs of the grid will help ensure that these investments are a success.” 

NEMA’s response to the USTR’s request for public comments and notice of public hearing regarding the Office’s Initiation of Section 301 Investigations: Acts, Policies, and Practices of Certain Economies Relating to Structural Excess Capacity and Production in Manufacturing Sectors can be accessed here [Submission ID USTR-2026-0067-00126080].