Tariffs Nobody Wants, Part II
Why does the United States levy tariffs on imported goods that U.S. manufacturers and consumers need...but that aren't even produced domestically?
On June 28 I wrote that Congress has been unable to move the Miscellaneous Tariff Bill (MTB). According to a Key Vote letter sent by the U.S. Chamber to the House of Representatives this week:
Tens of thousands of American workers and hundreds of American companies depend on the MTB for relief from tariffs that serve only to raise costs for U.S. manufacturers and other U.S. businesses.
According to guidelines established by Congress, the MTB is a vehicle for the temporary suspension or reduction of duties levied on imported materials or intermediate products that are not produced domestically, or where there is no domestic opposition. By eliminating these tariffs, the MTB lowers costs and helps U.S. businesses maintain their competitive edge.
The process for approving products for duty suspension under the MTB is fully transparent. All tariff suspension requests go through a vetting process to determine whether any affected products are produced domestically or whether there is any domestic opposition.
Since the last MTB expired at the end of 2009, the United States is levying significant tariffs on inputs and components that U.S. manufacturers need but that aren't even made in the United States.
The good news is that the bill has been placed on the House suspensions calendar, where, our friends at the NAM point out, "a two-thirds vote is necessary for passage. Fortunately, the case for the bill is so strong that that margin is attainable." With Key Vote letters from the Chamber and NAM, it’s plain the business community views this as a top priority.
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