American Made Glossary

Understanding what “Made in USA” actually means requires knowing the rules, standards, and terminology behind the label. This glossary covers the key terms consumers and manufacturers need to know.

Made in USA

The Federal Trade Commission (FTC) standard requires that a product labeled "Made in USA" must be "all or virtually all" made in the United States. This means the product's final assembly or processing and all significant parts, materials, and processing must be of US origin. The FTC enforces this standard and can take action against deceptive claims.

Assembled in USA

A product "Assembled in USA" has its principal assembly or final processing done in the United States, but its components or materials may originate from other countries. This is a qualified claim — legally permissible when accurate — and is distinct from the stricter "Made in USA" standard.

FTC Made in USA Standard

The Federal Trade Commission enforces "Made in USA" claims under Section 5 of the FTC Act, which prohibits unfair or deceptive acts in commerce. For a product to carry an unqualified "Made in USA" label, it must contain no — or negligible — foreign content. Companies making qualified claims (e.g., "Made in USA of US and imported parts") must clearly disclose the extent of US vs. foreign content.

Domestic Content

The percentage of a product's total manufacturing cost attributable to US-origin parts, materials, and labor. Higher domestic content generally indicates a stronger connection to American manufacturing. The Buy American Act and related regulations often specify minimum domestic content thresholds for government procurement.

Buy American Act

A federal law (41 U.S.C. §§ 8301–8305) that requires the US federal government to prefer domestic products in its procurement of goods. The Act generally requires that manufactured products be produced in the US and that at least a certain percentage of their components are domestically sourced. It applies to government purchasing, not to private consumer goods.

American-Made

A colloquial term used to describe products manufactured in the United States. While widely used in marketing, "American-made" is not a precisely defined legal standard the way "Made in USA" is under FTC rules. Consumers should look for transparency about where products are manufactured and what percentage of components are domestically sourced.

Product of USA

Primarily used for agricultural and food products, "Product of USA" or "Product of U.S.A." indicates that the item was grown, produced, or manufactured entirely within the United States. The USDA has strengthened rules around this label for meat, poultry, and egg products to require that animals be born, raised, slaughtered, and processed in the US.

Country of Origin Labeling (COOL)

Country of Origin Labeling laws require certain products — particularly food, fish, and agricultural goods — to disclose the country where the product was produced, grown, or processed. COOL helps consumers make informed purchasing decisions and supports transparency in global supply chains.

Third-Party Verified

A manufacturing or sourcing claim independently confirmed by an organization not affiliated with the manufacturer. Third-party verification adds credibility to Made in USA claims because an external auditor — rather than the company itself — has reviewed the supply chain, production processes, and documentation. Examples include certifications from the Made in USA Certified program.

Component Sourcing

The origin of the raw materials, parts, and sub-assemblies used to manufacture a finished product. Transparency about component sourcing is important context for evaluating how "American-made" a product truly is. A product may be assembled in the US but use components sourced from overseas — and vice versa.

Reshoring

The process of returning manufacturing operations back to the United States after they had previously been moved overseas (offshoring). Reshoring is driven by factors including rising overseas labor costs, supply chain resilience concerns, quality control, and consumer preference for domestically made goods.

Supply Chain Transparency

The degree to which a company discloses information about where its products are made, where its materials come from, and how its manufacturing processes work. Supply chain transparency is a core value at Made It In The States — we encourage companies to share honest information rather than rely on vague "patriotic" marketing.

"All or Virtually All" Standard

The specific language the FTC uses to define when a product qualifies for an unqualified "Made in USA" claim. "All or virtually all" means the product's final assembly or processing must occur in the US, and all significant parts, materials, and processing must also be of US origin. The FTC recognizes that some negligible foreign content may be unavoidable, but there is no fixed percentage threshold — the FTC evaluates claims on a case-by-case basis considering the product's total manufacturing cost, the importance of the foreign part, and consumer perception.

Qualified Made in USA Claim

A "qualified" claim acknowledges that a product is not entirely made in the United States. Examples include "Made in USA of US and imported parts," "Assembled in USA from globally sourced components," or "60% US content." The FTC permits qualified claims as long as they are truthful and not misleading. Qualified claims give consumers more honest information than a broad unqualified label would, but they must be specific enough to convey the true extent of US and foreign content.

Berry Amendment

A federal law (10 U.S.C. § 4862) that requires the US Department of Defense to give preference to domestically produced goods — particularly food, clothing, fabrics, fibers, yarns, and related items. The Berry Amendment is stricter than the Buy American Act: it generally requires 100% domestic production and sourcing of covered items, with limited exceptions. It does not apply to consumer purchases but is a key driver of domestic manufacturing in textile and food sectors.

Trade Agreements Act (TAA)

A federal law governing products purchased by the US government under trade agreements. TAA-compliant products must be manufactured or substantially transformed in the United States or in a designated TAA country (a nation with which the US has a qualifying trade agreement). TAA compliance is distinct from the FTC's Made in USA standard and is primarily relevant to government contractors and vendors selling to federal agencies.

Domestic Content Percentage

The share of a product's total cost of manufacturing attributable to US-origin materials, parts, and labor. Different laws set different thresholds: the Buy American Act historically required 50% domestic content (raised to 60% and phased to 75% under recent executive orders for federal procurement), while the FTC's consumer-facing standard uses the qualitative "all or virtually all" test rather than a fixed number. Knowing a product's domestic content percentage helps consumers and buyers make informed comparisons.

Tariff Country of Origin

The country assigned to a product for customs and tariff purposes, determined by US Customs and Border Protection (CBP) rules. This is separate from consumer-facing "Made in USA" labeling. A product can be substantially transformed in the US (making it US-origin for tariff purposes) yet still not qualify for an unqualified FTC Made in USA label — and vice versa. Consumers and importers should be aware that tariff origin and marketing origin can differ.

OEM (Original Equipment Manufacturer)

A company that designs and manufactures a product that another company then sells under its own brand name. In the context of American manufacturing, OEM relationships matter because a product sold by a US brand may be manufactured by a different domestic or foreign OEM. Understanding whether a brand is an OEM or a reseller helps consumers evaluate how directly that company controls its manufacturing and supply chain.

Private Label Manufacturing

A business arrangement in which a manufacturer produces goods that a retailer or brand sells under its own label. Private label products are common across many consumer categories. For Made in USA claims, what matters is where the private label manufacturer actually produces the goods — not where the brand selling them is headquartered. A domestic brand name does not guarantee domestic production.

Offshoring

The practice of relocating manufacturing or business operations to a foreign country, typically to reduce labor or production costs. Offshoring accelerated significantly from the 1970s through the 2000s across many US industries, contributing to the decline of domestic manufacturing employment. It is the opposite of reshoring. While offshoring can lower costs, it often reduces supply chain visibility and extends lead times.

Nearshoring

Moving manufacturing or business operations to a nearby country — typically Mexico or Canada for US companies — rather than back to the United States itself. Nearshoring offers some supply chain advantages over distant offshoring (shorter transit times, similar time zones, lower shipping costs) but does not qualify products for Made in USA labeling. It is an intermediate strategy between full offshoring and domestic reshoring.

Supply Chain Audit

A formal review of a company's supply chain to verify the origin of materials, the location of manufacturing, labor practices, and compliance with relevant standards. Supply chain audits may be conducted internally or by independent third parties. For American made claims, an audit can confirm whether a company's assertions about domestic production are accurate. Audits are the foundation of third-party verification programs.

Manufacturing Extension Partnership (MEP)

A national network of centers, administered by the National Institute of Standards and Technology (NIST) and co-funded by federal and state governments, that provides consulting, training, and resources to small and medium-sized US manufacturers. MEP centers help domestic manufacturers improve processes, adopt new technologies, and grow their businesses. The MEP network operates in all 50 states and Puerto Rico.