This week’s post includes insight shared for the article “How will potential tariffs impact CT manufacturers/supply chains? It’s a key issue in 2025,” published in the Hartford Business Journal’s Economic Forecast issue on January 13, 2025.
In late 2012, we created the Manufacturing Law Blog with the goal of providing our manufacturing clients with a holistic approach to the unique issues they face in their global operations. Starting in 2016, we began a tradition of dedicating our first three posts of the year to a yearly outlook from our different vantage points.
Here are corporate compliance and litigation issues that manufacturers might expect to face in 2022:
1. Everyone wants to talk about the “T” word – Tariffs. We will be monitoring these developments closely, including on the raw material side. Do not lose sight of the impact of tariffs on foreign companies who already have operations in the United States. Several of our clients who have subsidiaries based in the United States are discussing whether to expand their manufacturing operations. The potential expansion is related to tariffs, but also to maintain flexibility in their operations throughout the world.
2. The transformational trilateral trade agreement between the United States, Australia, and the United Kingdom (AUKUS) is a hot topic heading into 2025. A lot of commentators are trying to predict whether the Trump Administration will walk away from the deal or re-negotiate it. Significantly, Secretary of State Marco Rubio made positive comments about AUKUS during his confirmation hearing. Connecticut and its manufacturing industrial base have invested a lot of time and effort promoting AUKUS and developing the infrastructure for companies to do business here. We have seen a significant uptick of activity from Australian companies in Connecticut as one example. Whether this momentum continues in 2025 will be something I will be watching carefully.
3. Collaboration remains key amongst manufacturers. Several manufacturers are “teaming” together to develop products, including as part of government contracting bids (both in the United States and abroad). There are pros and cons to such collaborative efforts and we have been advising clients how to avoid the major pitfalls with sharing your intellectual property with other companies, including competitors. In 2025, I expect these collaborative efforts to continue.