The news: Snacks maker Mars said it plans to invest an additional $2 billion in US manufacturing through next year to build new facilities and upgrade existing ones in wake of the Trump administration’s tariffs.

• The latest investment adds to the $6 billion the company spent on US manufacturing over the past five years, which created 9,000 jobs, The Wall Street Journal reported.
• The company said the funds will support projects including a new Nature’s Bakery plant in Utah that will create 230 jobs.

Zooming out: Many companies that have announced US expansion plans in wake of the Trump administration’s tariff policies already have an established presence in the country—Mars said the US is its biggest market and that about 94% of its products are produced domestically. As a result, bolstering their operations may not represent a significant strategic pivot or an initial greenfield investment.

• Luxury brand LVMH plans to open a second Louis Vuitton factory in Texas.
• Pharmaceutical companies are planning significant US investments, with AstraZeneca recently announcing a $50 billion expansion that includes construction of a Virginia manufacturing center that will be its biggest single hub.
• BMW said in April that it was mulling boosting output at its Spartanburg, South Carolina plant. Honda, Stellantis, and Volkswagen have also announced plans for new or expanded production across North America this year.

Costly endeavor: While not all companies planning US output expansions have cited tariffs as the primary reason, the Trump administration is betting that its tariff policy will help revive US manufacturing.

Companies looking to set up operations in the US for the first time face a host of hurdles including high startup costs. Most respondents (57%) in an April CNBC Supply Chain Survey said cost was the biggest impediment in relocating supply chains to the US, while 21% cited difficulty finding skilled labor. Toy makers including Mattel and MGA Entertainment have said this year that it remains cheaper to make toys abroad, even with tariffs in place.

Our take: Tariffs are leading some businesses to boost their US footprint, and we may see more investment announcements. But a key consideration is whether these expansion announcements will represent substantive, job-creating initiatives, or if they are largely symbolic moves designed to support the US government’s current messaging around American manufacturing.

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