Is 'Made in the USA' Still Worth It with Tariffs? Plus: Best Accounts for Your Home Repair Savings
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What does 'Made in the USA' really mean?
Sean, what's the last thing you bought that you know for certain was made in the United States?
That would have to be this pair of jeans that was a little pricey, I assume because it was made in the U.S., but they are completely worth it because they fit me perfectly.
Okay, you're going to have to give me the name of the jeans after the show because I love a good pair of jeans. This episode, we're looking at what it really means for a product to be made in the United States and what we're all willing to pay for that label.
Welcome to NerdWallet's Smart Money Podcast, where you send us your money questions and we answer them with the help of our genius nerds. I'm Sean Piles.
And I'm Elizabeth Ayola.
This episode, we answer a listener's questions about how to rebuild their savings after a big expense. But first, our weekly money news roundup, where we break down the latest in the world of finance to help you be smarter with your money.
Today, we're talking about why it isn't always easy or economical for products to be made in the USA.
Our news colleague, Anna Helhosky, is here with more details. Hey, Anna.
Thanks, Sean and Elizabeth. We've talked a lot over the last few months about how tariffs can impact prices, and that's got me thinking about products that are made in America. People certainly like the idea of made in the US.
How are 'Made in the USA' labels regulated by the FTC?
A November 2024 poll conducted by Morning Consult on behalf of the Alliance for American Manufacturing showed that 60% of respondents made the effort to buy made in America products over the previous 12 months. and 82% of Americans would buy more made in America products if large retailers made them more available. Now, the Alliance for American Manufacturing has its pony in this race, but let's assume that this overwhelming desire for homegrown products is true. I've looked, and it can be a challenge to find goods that are actually made in the U.S. Why is that so difficult, Anna? Well, because what constitutes an official made-in-America product is up to the Federal Trade Commission, and it has been for decades. In 1997, the FTC provided some guidance for companies to use the made-in-USA label. The standard is that all or virtually all of a product advertised as made-in-the-USA must be made in the U.S.,
A company doesn't have to disclose if their product is made in the U.S., but if it wants to label it made in the U.S., then it must follow the all or virtually all standard laid out by the FTC.
OK. And what does virtually all mean in this context?
So virtually all means that a product manufactured in the U.S. could still use foreign imports as part of the production process. Many American companies with manufacturing in the U.S. will still rely on global supply chains to complete products. Crayola is a really good example of this. Its corporate headquarters is in Pennsylvania, and it also has manufacturing facilities there and in Mexico. Like many U.S.-based companies, Crayola is not operating fully independent of global supply chains. And for that reason, tariffs present a challenge for so many U.S. companies. And what are some of those challenges? Well, it means U.S.-based companies will face import costs for components that they require from foreign countries. And they're likely to pass those extra costs along to U.S.
What impact do tariffs have on American-made product costs?
consumers, at least in part, if not fully. But many of these products likely can't be made entirely in the U.S. right now, so there's not much choice they have there. A car is a really great example. Huge auto companies are based in the U.S., Ford, General Motors, and Stellantis. And they may assemble domestically, but assembly is the final step in the manufacturing process. It takes something like 30,000 parts to make a car. So somewhere in that sourcing, producing and shipping processes are going to be non-American goods. And every time those parts cross borders, they'll face tariffs. So not only are U.S. cars not really 100% made in the U.S., they're likely to get more expensive the longer tariffs are in place. Pharmaceuticals are another example. A U.S.
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Chapters
8 chapters
1
What does 'Made in the USA' really mean?
0:00–1:16
2
How are 'Made in the USA' labels regulated by the FTC?
1:16–3:12
3
What impact do tariffs have on American-made product costs?
3:12–4:59
4
Is U.S. manufacturing fully independent or reliant on global supply chains?
4:59–6:06
5
Are there trends or increases in investment in U.S. manufacturing?
6:06–9:20
6
How can consumers find authentic 'Made in the USA' products?
9:20–12:35
7
What are effective strategies for rebuilding savings after home repairs?
12:35–13:17
8
Should you use a high-yield savings account or money market account for home repair savings?
13:17–24:32
Speakers
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