Made in USA? What That Label Really Means (and Doesn’t)

Picture yourself standing in a big box store somewhere in the U.S. The shelves are full, flags are flying, and somewhere nearby there’s probably a bald eagle on a t-shirt. You spot a label: “Made in USA.” Feels reassuring, right? But what does it actually mean?

Turns out, not all “Made in USA” labels mean what we think they do.

If something says “Made in USA,” the expectation is pretty high. It means the product was put together in the U.S., and most of what’s in it — parts, labor, materials — came from here too. Not just the final step, like adding a tag or screwing on a handle. The core of it has to be American.

But the label isn’t always that clear-cut. Some products are only partly made here. In those cases, companies can still use the label, but they have to be upfront about it. Let’s break it down by “made in.”

Made in USA

This one’s enforced by the U.S. Federal Trade Commission. If you see “Made in USA” on a product, the idea is that it’s not just assembled here. Most of what went into it came from the U.S. too. It doesn’t mean 100 percent, but it needs to be close enough that people wouldn’t feel misled. And if the product includes parts from other countries, companies have to say so. It’s not about hiding the details. It’s about being honest. (FTC)

Made in the USA (for government purposes)

The U.S. government has a completely different standard when it comes to the items it purchases. According to the Buy American Act, a product must “be manufactured in the U.S. of more than 50% U.S. parts to be considered Made in the USA for government procurement purposes. (Investopedia)

Made in America

This one’s murkier. “America” technically includes all of North America — the U.S., Canada, and Mexico. So “Made in America” isn’t a regulated term in the same way, and it can mean different things depending on who’s using it. Sometimes it still means “Made in the U.S.,” but not always. If you’re unsure, it’s worth checking the company’s website or product details for more context. (Investopedia)

Made in Canada / Product of Canada

“Made in Canada” means the item underwent its last substantial transformation in the country and that at least 51% of the direct production costs were incurred in Canada. The label must also include a qualifier to clarify the origin of the parts, such as “with imported parts” or “with domestic and imported parts.” The goal is to ensure consumers aren’t misled about how much of a product is truly Canadian. (Government of Canada).

For food, the ingredients must be Canadian in origin, with non-Canadian materials making up less than 2% of the product. (Government of Canada)

For both food and other products in the USA and Canada, packaging is not considered when determining origin. What matters is the product itself, not the box, the wrapping, or the branding.

Why Does This Matter?

Because for a lot of people, the label influences the purchase. It taps into ideas about supporting local jobs, reducing environmental impact, or just wanting to buy something that feels a little more rooted in home.

Today, that phone in your pocket was designed in California, with a processor from Taiwan, memory from South Korea, and final assembly in China (Gesrepair). That “American” pickup truck could have parts from ten different countries and still qualify for a U.S.-based label. Same goes for clothing, electronics, even food.

Maybe that’s not a bad thing.

It’s easy to think of globalization as something abstract, something that happens on shipping routes or factory floors far away. But really, it shows up right in our kitchens, closets, and garages. Our daily lives are full of cross-border collaborations we don’t always see.

And once again, the only real enemy is ignorance.