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.