How Nevada Politicians Rally Behind Manufacturing Amid New U.S. Trade Policies
Nevada's manufacturing industry, long overshadowed by the state's tourism and gaming sectors, has emerged as an important component of economic diversification. This is why there is bipartisan support for state incentives and tax abatements, which have totaled billions over the past decade. Nevada's manufacturing workforce totaled approximately 66,300 employees at the end of last year, contributing over $11.6 billion to the state's gross domestic product in 2024. Manufacturing hubs in northern Nevada have attracted major investments, with Tesla's Gigafactory serving as a flagship example, fostering thousands of jobs and positioning Nevada as a competitive player in advanced manufacturing. However, this burgeoning industry faces ongoing challenges due to volatile global supply chains and new U.S. trade policies under the Trump administration, which imposes broad tariffs on component imports essential for electric vehicle and battery production businesses. These developments are eliciting varied reactions from Nevada’s leading political figures.
While many Republicans have praised the tariffs for bolstering domestic employment, Nevada's Republican Governor Joe Lombardo (R) has criticized their impact on the state's battery sector as a "serious risk." In a letter to President Trump requesting that lithium imports be exempted from the sweeping tariffs, Lombardo stated, "Removing the tariffs on lithium will help secure American jobs, strengthen our economy, and support our path toward energy independence."
Representative Amodei (R) added, “We’ll be closely monitoring key indicators of economic stability, such as job reports, inflation, and consumer spending, but nobody said this was going to be instant gratification, and as the President said, ‘We’re dealing with a very sick patient.’”
Senator Catherine Cortez Masto (D) criticized the tariffs, saying “I agree we should bring manufacturing back to America, but we can’t do that by jacking up prices on families. These blanket tariffs on some of our closest allies are going to do serious harm to hardworking Nevadans and their businesses.”
These divergent views underscore the tariffs' polarizing nature, likely amplifying their role as a flashpoint in Nevada's 2026 midterm races, where economic issues could sway voters in this purple state.
Compared to the industrial bases of Midwestern states, which have faced significant job losses due to offshoring, automation, and globalization since the late 20th century, Nevada's manufacturing sector has historically been smaller in scale. Despite its modest size, the sector includes notable manufacturers. Leading the list is Tesla, Inc., operating the world’s largest factory outside Reno-Sparks, employing 7,000. International Game Technology (IGT) ranks second, with its Reno facility employing 1,800 to manufacture slot machines, followed by Scientific Games in Las Vegas, with 1,500 workers producing gaming equipment. Hamilton Company in Reno, employing 1,000, specializes in precision measurement devices and automated liquid handling systems, while Cortez Gold Mines in Crescent Valley, also with 1,000 employees, is a major gold mining operation. Other notable manufacturers include Cashman Equipment in Henderson supplying heavy equipment, Western Nevada Supply in Sparks producing wholesale HVAC and plumbing products, Arroweye Solutions in Henderson manufacturing payment technology, and ProCaps Laboratories in Henderson producing solar-powered nutrition supplements.
To attract more manufacturing businesses, the Nevada state government has implemented comprehensive incentive packages. The Governor's Office of Economic Development (GOED) spearheads these efforts, providing tax abatements for projects meeting specific capital investment requirements, such as a minimum of $5 million for manufacturing in urban areas. These incentives include reduced sales taxes on capital equipment and modified business tax credits for up to 20 years, fostering investment in facilities and job creation.
A Federal Reserve analysis indicates that trade tariffs could enhance Nevada's manufacturing sector by promoting reshoring, capitalizing on the state’s business-friendly policies and supporting its small and medium-sized exporters. Meanwhile, a May 2025 report highlighted a $173 million shortfall in Nevada’s biennial budget forecast, attributed to increased state procurement and consumer goods costs. Axios noted a 153% effective cost surge for Nevada’s imported goods, potentially inflating prices for essentials like groceries and electronics, which could reduce manufacturing demand. Despite these challenges, Nevada’s lower reliance on cross-border trade position it as less impacted than states like California, though import-dependent sectors like electronics assembly may face inflationary pressures.
As Nevada navigates these dynamics, its manufacturing sector appears poised for continued expansion. With state incentives driving recruitment and tariffs potentially accelerating domestic shifts, Nevada is betting on innovation and policy support to sustain momentum. GOED's ongoing projects. Yet, balancing global trade pressures with local needs will remain critical for policymakers and businesses alike.
