Month: July 2020

WASHINGTON, D.C., (July 28, 2020) — Today, Americans for Free Trade sent a letter to Representatives Jackie Walorski (R-IN) and Collin Peterson (D-MN) expressing strong support for their bipartisan legislation, H.R. 7665, to extend current product exclusions from the Section 301 China tariffs for at least one year. Over 160 trade associations signed the letter, citing the need to provide certainty for companies who have been granted exclusions and give transparency to the current exclusion process. 

“As businesses around the country try to recover from the economic harm caused by the COVID-19 pandemic, they need as much certainty as possible to ensure a full and successful recovery,” Americans for Free Trade wrote. “The exclusion process as implemented by USTR should not stand as a barrier to a businesses’ ability to recover. Businesses often have to wait months – and some have waited up to a year – to find out from USTR whether they have been granted an exclusion.”

The full text of the letter may be found here and below:

July 28, 2020

The Honorable Jackie Walorski                                
419 Cannon House Office Building                          
Washington, DC 20515

The Honorable Collin Peterson
2204 Rayburn House Office Building
Washington, DC 20515

Dear Representative Walorski and Representative Peterson,

            On behalf of Americans for Free Trade, we are writing to thank you for your leadership and express our strong support for H.R. 7665, which directs the United States Trade Representative to extend current product exclusions from the Section 301 China tariffs for at least one year. We fully believe that H.R. 7665 is needed to provide certainty for companies who have been granted exclusions and transparency to the current exclusion process. 

            Our coalition represents every part of the U.S. economy including manufacturers, farmers and agribusinesses, retailers, technology companies, service suppliers, natural gas and oil companies, importers, exporters, and other supply chain stakeholders. Collectively, we support tens of millions of American jobs through our vast supply chains.  

            As businesses around the country try to recover from the economic harm caused by the COVID-19 pandemic, they need as much certainty as possible to ensure a full and successful recovery. The exclusion process as implemented by USTR should not stand as a barrier to a businesses’ ability to recover. Businesses often have to wait months – and some have waited up to a year – to find out from USTR whether they have been granted an exclusion. Often that news comes at the last minute, with the exclusion expiring shortly after they receive it. This forces businesses to expend resources reapplying for the same exclusion right away. 

We have also heard from many businesses about the lack of transparency around the process, for example how or why one business is granted a product exclusion, but another is denied for the same product. In many instances, companies who have been denied an exclusion – even in instances where there was no industry objection – have not been provided full details as to why their exclusion was denied. This information would help businesses better understand the type of information USTR is looking for in future exclusion requests, as well as understand whether USTR is administering the process in a fair and transparent manner.

            We recently submitted comments for the record for the Ways & Means Committee hearing with Ambassador Lighthizer on the 2020 Trade Policy Agenda. In those comments, we called upon the Committee to increase its oversight of the exclusion process and insist that USTR administer the process in a fair, transparent, and efficient manner to ensure that it provides meaningful relief for those bearing the brunt of these harmful tariffs. We also noted concerns with Ambassador Lighthizer’s comments that future extensions to current exclusions would only be granted through this calendar year. We believe the statements demonstrate a fundamental lack of understanding of the complex business decisions that determine where global supply chains are developed and whether they can or should be moved. The comments also showed little regard for the economic uncertainty faced by American businesses because of the COVID-19 outbreak. That is why your legislation, which will provide much-needed certainty, is so critically important.

            We thank you for your ongoing leadership regarding the impact of tariffs on U.S. businesses throughout the economy. We encourage quick passage of H.R. 7665.

Sincerely,

WASHINGTON, D.C., (July 1, 2020) — Today, Americans for Free Trade filed comments to the public records of the House Ways & Means Committee and the Senate Finance Committee in response to the June 17th testimony of United States Trade Representative Robert Lighthizer before both committees on the President’s 2020 Trade Policy Agenda.

“Members and Senators from both sides of the aisle made it clear during Amb. Lighthizer’s testimony that President Trump’s tariffs are having a negative impact on the economy in their states and across the country,” said Americans for Free Trade spokesperson Jonathan Gold. “Tariffs are billions of dollars in taxes that American businesses, farmers, and consumers have been paying since before the COVID-19 outbreak, and they are causing even greater harm now amid the continuing economic crisis. The Administration should be doing everything it can to stimulate the economy during this time of economic recovery, and that’s why hundreds of American businesses, manufacturers, and farmers are calling on President Trump to end the tariffs now.”

160 companies signed onto these comments for the public record. The letter to the House Ways & Means Committee may be found here and the letter to the Senate Finance Committee may be found here.

In case you missed it, Tariffs Hurt the Heartland recently hosted a virtual roundtable discussion featuring Pennsylvania farmers, business owners and manufacturers that are being negatively impacted by President Trump’s trade war with China. 

Leaders across several industries shared how the elimination of tariffs would help their businesses navigate and survive the complexities of the market, especially now in the midst of COVID-19. Sherril Mossee, founder and CEO of MinkeeBlue said,

“When the tariffs hit, I was really devastated because I had little money to begin with, and [tariffs] impacted my business tremendously. I’ve been working tirelessly trying to figure things out while I try to navigate tariffs, manufacturing, and trying to make sure that I stay relevant in the market.”

Speaking to the impact that Pennsylvania farmers have experienced, Dennis Wolff, owner of Pen-Col Farms in Millville, shared:

“The trade war has been devastating to [Pennsylvania] agriculture, agriculture across the United states, and rural America. There is no question that when a farmer goes out of business it not only impacts that farm and [their] family, but it also hurts the surrounding areas in rural Pennsylvania.”  

Pennsylvania taxpayers have paid over $1.6 billion in additional taxes because of the trade war. What’s worse, tariffs could cost 84,800 jobs in Pennsylvania.

Craig Allen, President of the U.S.-China Business Council shared how an additional deal must be made to provide tariff relief:

“The continued use of tariffs is really causing a lot of damage in both countries, and the sooner that we are able to reach a Phase Two agreement, the better it will be for distillers, farmers, and manufacturers all across the country.”

Now is the time to end tariffs.