Treasury Secretary Scott Bessent visited Iowa on August 12 to highlight how federal tax cuts are fueling manufacturing expansion, touring Vermeer Corporation’s facility in Pella and promoting the Working Families Tax Cuts Act as a catalyst for domestic investment in the state’s industrial sector.
Bessent appeared with U.S. Representative Mariannette Miller-Meeks to tour Vermeer’s global parts distribution center and participate in a roundtable discussion with agricultural manufacturers. The visit underscored the administration’s push to showcase tax policy benefits as manufacturers navigate economic headwinds.
Vermeer’s CEO Jason Andringa credited the tax law with enabling the company’s expansion plans. He told The Gazette that “the One Big Beautiful Bill, the Working Families Tax Act, H.R. 1, however you want to call it, has been very beneficial for Vermeer, our dealers and our customers.” Provisions encouraging research and development, equipment expensing, and factory construction contributed to Vermeer’s decision to build a new 300,000-square-foot manufacturing facility in Bondurant, which will be roughly three times larger than the company’s current 100,000-square-foot Des Moines operation and create 150 to 200 additional jobs.
The tax law’s centerpiece for manufacturers is full-expensing, which allows businesses to immediately deduct the cost of qualifying equipment and factory construction. Bessent said manufacturers at the roundtable highlighted this provision as a powerful incentive to expand production in the United States. “What they like is the powerful incentives in the bill to expand manufacturing in the U.S.,” Bessent said in an interview.
However, Bessent’s visit came as Iowa’s manufacturing sector faces significant headwinds. The state lost 4,300 manufacturing jobs over the 12 months ending in June 2026, more than any other Iowa industry, according to Iowa Workforce Development. Major employers including Whirlpool and John Deere have announced workforce reductions amid weakness in agricultural equipment demand.
Andringa acknowledged a major cost offsetting the tax law’s benefits: tariffs. He said the Trump administration’s tariff policies cost Vermeer approximately $2.5 million per month in additional expenses, even though the company sources nearly all of its steel domestically. When asked whether the combination of tax cuts and tariffs had made it easier for Vermeer to invest domestically, Andringa drew a sharp distinction. “Half of that I will give a resounding ‘yes’ to, and that’s the tax cuts,” he said. “The tax cuts have been resoundingly beneficial and helped us to grow and succeed. Tariffs, I would say ‘no.'” He added that the “chaotic nature” of tariff rollouts over the preceding 15 to 18 months had made planning difficult.
Bessent defended the broader manufacturing strategy, arguing that new factory investment takes longer to show up in employment data. He pointed to manufacturing expansions in other states and said construction employment generated by new facilities would eventually translate into permanent factory jobs.
On the farm economy, Bessent acknowledged pressure on farmers who purchase equipment from manufacturers like Vermeer. He pointed to $12 billion in federal farm assistance and said the administration was pushing China for greater certainty on soybean purchases while monitoring farm credit conditions heading into the next growing season. “The $12 billion that went out was important for last year, but it’s important that farmers have credit for next year,” he said.
Bessent also met with Iowa bankers during the visit to discuss the tax provisions and Trump Accounts, a savings account initiative the administration has been promoting. The visit was part of a broader Trump administration effort to campaign for Iowa Republicans ahead of the 2026 elections, with multiple administration officials scheduled to visit the state through August 23.
Andringa said Vermeer would like to see Washington continue investing in infrastructure while pursuing permitting reform, regulatory changes, and improvements to the U.S.-Mexico-Canada trade agreement. The company’s expansion reflects confidence in long-term demand, even as the broader manufacturing sector in Iowa faces near-term challenges from tariffs and agricultural weakness.
Sources
- The Gazette — Treasury Secretary Bessent’s visit to Vermeer, quotes from Bessent and CEO Andringa on tax cuts and tariffs, Iowa manufacturing job losses
- U.S. Department of the Treasury — Press release on Bessent’s Iowa visit and manufacturing renaissance messaging
- U.S. House, Miller-Meeks office — Details on Bessent’s tour and remarks at Vermeer facility
- Iowa Workforce Development — Data on Iowa manufacturing job losses in 12 months ending June 2026
- Vermeer Corporation — Details on new Bondurant facility, job creation targets, and tax law benefits
