February 13, 2025 The Push For Sustainable Manufacturing Isn’t Going Away

President Trump will cause a stir in the manufacturing sector, but he won’t stop the trend towards sustainable manufacturing.

By Simon D. Kim, CEO and founder of Glassdome

We’re in the midst of a political and social whirlwind. President Trump has moved quickly to transform or uproot long-term institutions and practices. He nearly sparked a trade war with American neighbors Mexico and Canada when he proposed steep tariffs. Those tariffs are now on hold, although tariffs with China are in place. In addition, he has pushed other proposals, such as a sovereign wealth fund for the United States and increased adoption of cryptocurrency.

One of Trump’s first executive actions was to pull the United States out of the Paris Agreement on the environment for the second time. Countries worldwide adopted the agreement in 2015 to reduce greenhouse gas emissions and forestall climate change. Though expected, this move still alarmed foreign governments and even businesses. Manufacturers working hard to build more sustainable companies immediately wondered what this change meant for their businesses.

The global move toward sustainable business will not slow down, even with the Trump administration’s actions. Manufacturers will be best served by continuing on the path of sustainability, not just because they want to trade with other countries but because it’s ultimately best for business. Here are reasons why sustainable manufacturing will still progress despite recent political changes.

Trump Wants To Trade Bilaterally With Signee Countries: Trump has shown little interest in international accords and cooperation. Nonetheless, he focuses heavily on bilateral trade with countries that signed the Paris Agreement and pursue its goals. Trump also believes in the possible protectionist benefits of green barriers for products from countries like China. As a result, the trend toward more sustainable manufacturing should not change because Trump pulled the U.S. out of the agreement. Manufacturers working with bilateral trade partners must follow their sustainability rules.

The World Wants Greener Products: Even if the U.S. were to slow green progress, the remaining 195 countries in the Paris Agreement would build on it, including its emphasis on creating a technology framework to help realize its aims. Additionally, U.S. companies will feel the pressure to compete globally with companies investing in efficient and greener products, which many consumers want. 

While the United States has gone backward, the rest of the world sees green businesses and products as a business opportunity rather than an obstacle. Asia considers green business a $5 trillion market opportunity. Even China, which has lagged behind the world in sustainable and green business, is starting to embrace sustainable business and reduce carbon emissions.

Manufacturing Moves Slowly: In four years, the U.S. could elect a president that once again signs the Paris Agreement and implements stricter emission standards. Manufacturing companies are unlikely to reverse course if the pendulum could swing the other way in less than half a decade.

Sustainability Affects A Company’s Brand and Bottom Line: Many consumers, particularly those under 30, pay attention to a company’s environmental practices and won’t support or buy products from a company that isn’t thinking about sustainability or working to build a more environmentally friendly business. Some companies have built their reputation and goodwill around sustainability practices. Consumers, particularly in Gen Z, are also developing real buying power.  More than 75 percent of Gen Z consumers are willing to pay more for sustainable goods.

The European Union Sets Its Standards: The E.U. remains a key market for American companies. Most companies won’t bother producing separate products for the U.S. and the E.U. and will continue to follow E.U. regulations. Goods produced by heavy industry like cement, steel, or aluminum – industries that Trump wants to strengthen domestically –  fall under the E.U. ‘s Carbon Border Adjustment Mechanism (CBAM), which prevents carbon leakage or outsourcing carbon-intensive production outside of the E.U. countries. CBAM will cover additional products starting in 2030.  U.S. companies must begin addressing emissions in their manufacturing, even if America moves in a different direction.

Sustainability Remains Relevant: Manufacturing companies must consider sustainability to compete globally. Manufacturers that export to the E.U. or own subsidiaries there will be expected to comply with E.U. environmental regulations. Additionally, certain states, notably California and New York, will likely keep rules that affect the manufacturing sector. California plans to challenge the Trump administration on changes that could affect state environmental laws and many other issues.

The Big Picture: Changes Are Coming. Sustainability Will Stick Around. The political shifts in the United States and abroad will profoundly affect manufacturing. There will likely be more investment in the manufacturing sector in the U.S. in 2025 as the new administration works to boost manufacturing and increase the number of manufacturing jobs.

President Trump recently promised fast-track permitting for companies that invest $1 billion in the U.S., but an emphasis on protectionism may hurt a manufacturing sector that depends on the global supply chain. In addition, reports suggest that increased tariffs and trade policy shifts could increase costs and lead to strategic changes in manufacturing.

Despite all this, sustainability will remain crucial to manufacturing in the future. Political fortunes change quickly, and the move toward protectionism may be short-lived. Conversely, protectionism might stick around and benefit countries like the United States that need to rebuild their manufacturing base. Sustainability, however, isn’t going anywhere, and manufacturers who want to build a business that can compete globally must work to achieve it.

About the Author:
Simon Kim is the CEO and Founder of Glassdome. Kim sets Glassdome’s strategic direction and leads the company’s business units. Previously, Kim was a founding member and head of software at Awair, an air quality IoT company. He helped grow the company from zero lines of code to Series B, helping tens of thousands of customers and enterprises like Airbnb, Hyatt, and SGS.

Kim holds a bachelor’s degree in computer science from Stanford University, where he was the president of ASES Stanford, one of the largest student entrepreneurship organizations in the country. He also served as a sergeant in the Korean Army, and he was deployed to Afghanistan with the International Security Assistance Force.

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