Brookfield Bets on U.S. Manufacturing as Tariffs Reshape Global Supply Chains

The U.S. manufacturing sector is undergoing a quiet revolution. Amid escalating trade tensions and protectionist policies, Brookfield Infrastructure Partners LP (BAM) is positioning itself as a key player in reshaping the industrial landscape. The Canadian-based firm, guided by CEO Sam Pollock, is doubling down on U.S. manufacturing investments in 2025, targeting sectors critical to Western economic and geopolitical strategy—semiconductors, batteries, and solar panels—while leveraging long-term contracts to insulate itself from tariff volatility.

The Tariff-Driven Opportunity

President Trump’s tariffs, particularly those targeting Chinese imports, have created a unique opening for Brookfield. Companies like Walker Forge, Franchino Mold, and ELLWOOD have reported surging domestic demand and reshoring inquiries, with quote activity rising by 25% in some sectors. These trends align with Brookfield’s strategy to invest in industries where “reshoring is strategically important,” as Pollock puts it. The firm’s $30 billion partnership with Intel—a model for supporting semiconductor reshoring—demonstrates its ambition to capitalize on this shift.

But Brookfield’s focus isn’t limited to manufacturing. The firm is also eyeing energy diversification, particularly liquefied natural gas (LNG) infrastructure, as countries seek to reduce reliance on Russian and Middle Eastern energy supplies. This dual play—critical manufacturing and energy—reflects a broader bet on U.S. infrastructure as a hedge against global supply chain fragility.

Navigating Tariff Risks

While Brookfield’s direct exposure to tariffs is minimal—its transportation and energy assets are shielded by long-term contracts—its clients in shipping, agriculture, and energy face indirect costs. For instance, U.S. exporters of agricultural goods may incur higher costs due to retaliatory tariffs, while shipping firms grapple with fluctuating demand. Pollock acknowledges these risks but emphasizes that Brookfield’s “contractual cash flows” provide stability.

This cautious approach contrasts with Canadian firms like Algoma Steel, which posted a $139.9 million loss in early 2025 due to tariff-driven cost inflation and weak global steel prices. Brookfield’s strategy, however, prioritizes sectors where tariffs have a net positive effect—like semiconductors, where U.S. companies are reclaiming market share from Chinese rivals.

The Geopolitical Calculus

Brookfield’s moves are not merely commercial but also strategic. By backing industries deemed vital for national security—semiconductors for defense systems, batteries for electric vehicles—the firm is aligning with U.S. policy goals to reduce reliance on foreign supply chains. The U.S. market’s “depth and liquidity,” as Pollock notes, make it an ideal playground for infrastructure investments, even as Brookfield explores opportunities in Europe and Asia.

The data underscores this shift. The U.S. semiconductor industry, once in decline, is now projected to grow at 5.3% annually through 2027, according to the Semiconductor Industry Association. Meanwhile, global lithium demand for batteries is expected to rise by 2,400% by 2030, per Benchmark Mineral Intelligence. Brookfield’s investments in these sectors position it to capture a slice of this growth.

Conclusion: A Calculated Gamble with Upside

Brookfield’s bet on U.S. manufacturing hinges on two certainties: the enduring role of tariffs in reshaping global trade and the resilience of the American market. By focusing on high-priority sectors and relying on long-term contracts, the firm is mitigating near-term risks while capitalizing on long-term trends.

The numbers back this approach. The $30 billion Intel deal alone represents a significant stake in semiconductor reshoring, while Brookfield’s LNG investments could benefit from a global push for energy independence. Even as Canadian peers like Algoma falter, Brookfield’s U.S.-centric strategy—backed by a market that accounts for 45% of global infrastructure investment—offers a compelling risk-reward profile.

For investors, the takeaway is clear: Brookfield’s focus on critical industries and its ability to navigate trade complexities position it to thrive in a world where supply chains are as much a political tool as an economic one. The reshaped manufacturing landscape may yet prove to be the next frontier of infrastructure investment.