Supply Chain
Manufacturing growth slows in August as economic concerns loom: ISM
The latest ISM PMI report shows that US manufacturing activity expanded for the eighth consecutive month in August, but the pace slowed to 54.6%, down 1 percentage point from July. The new orders index fell 3 percentage points to 53.7%, while backlog orders and import indices also weakened significantly. Although the price index held steady at 71.1% and the employment index edged lower, respondents widely cited pressure from tariffs, the Iran war, and supply chain crises on their operations. ISM committee chair Susan Spence stated that this is the first time declines of more than 3 percentage points have been seen in three key areas, and warning signs are beginning to appear.
Nearly 60 members of Congress call for aluminum pricing investigation
美国众议院42名共和党议员和16名民主党议员联合致信商务部长霍华德·卢特尼克，要求调查国内铝销售中的“定价异常”。议员们指出，中西部溢价（MWP）作为全美范围的铝价基准，已纳入特朗普政府的50%关税，导致即使使用国产铝和再生铝的企业也承担关税成本。铝业协会、啤酒协会等组织分别表态，标普全球普氏则反驳称MWP是透明、独立的基准。
Trump imposes 100% tariffs on some drones and components
President Donald Trump signed a proclamation on Thursday imposing 100% tariffs on certain unmanned aircraft systems (UAS) and their components, citing a perceived national security threat. The duties, effective Sept. 3, apply to drones with a maximum takeoff weight over 55 pounds and systems with thermal imaging. Smaller drones and components without defense capabilities face a 25% tariff. Drones from U.S. allies, including EU members, Japan, Liechtenstein, South Korea, Switzerland, and Taiwan, will be charged 15%, while UK-made UAS models will be charged 10% if all hardware, software, and technology originate from those countries or the U.S. The proclamation also orders Commerce Secretary Howard Lutnick to establish an onshoring incentive program for drone manufacturing investments.
Pentagon signs over $2B in deals securing batteries, critical minerals
The U.S. Department of Defense announced the signing of multiple agreements totaling $2.03 billion aimed at securing battery and critical mineral supplies. Among these, the Office of Strategic Capital signed loan commitments totaling $1.95 billion with three battery and mineral companies, while the economic defense division invested $85.5 million in Strategic Bauxite USA for a mine acquisition in Guyana. Additionally, the Department of Defense allocated $81.3 million to support mining and metallurgy education, complementing a $100 million Department of Energy workforce initiative to address supply chain and talent gaps.
Hadrian raises $1.4B to increase manufacturing footprint, workforce
Hadrian announced a $1.37 billion Series D funding round, reaching a valuation of $7.9 billion. The capital will be used to build new factories, expand R&D and manufacturing capabilities, and plan to increase staffing from 700 to 2,000 employees to strengthen the U.S. defense, aerospace, and industrial systems supply chain.
MP Materials launches rare-earth magnet initiative
MP Materials announced on July 30 the launch of a rare earth magnet initiative to strengthen U.S. drone and motor supply chains. The program allows manufacturers to reserve capacity without signing binding purchase commitments. The company is working with the Department of Defense to develop the 10X magnet facility in North Las Vegas, Texas, expected to begin production in 2028. This move aims to reduce reliance on Chinese rare earth magnets and promote supply chain standardization.
PDW, DOD sign $820M conditional loan boosting drone part production
On July 31, Performance Drone Works (PDW) signed an $820 million conditional loan commitment with the U.S. Department of Defense, aimed at expanding domestic production capacity for drone components. The funds will be used for facility, manufacturing infrastructure, and equipment upgrades to support the production of Group 1 and Group 2 unmanned aircraft systems. This move comes amid the U.S. accelerating supply chain decoupling from China and facing challenges such as export controls.
25 states jointly sue Trump administration, challenging 'Section 301' forced labor tariffs
A coalition of 25 U.S. states has filed a lawsuit with the Court of International Trade, challenging tariffs imposed by the Trump administration under Section 301 of the Trade Act of 1974 on 60 trading partners allegedly failing to prevent entry of forced labor products. Plaintiffs argue that these tariffs, ranging from 10% to 12.5%, were implemented 'under the guise of combating forced labor in global trade,' should be ruled illegal, and demand refunds of amounts paid by the states.