WASHINGTON, D.C., (December 1, 2021) — Today, Americans for Free Trade (AFT), a broad coalition of American businesses, trade organizations, and workers united against tariffs sent a letter to House Ways & Means Committee Chairman Richard Neal (D-MA-1) and Ranking Member Kevin Brady (R-TX-8), as well as House Ways & Means Subcommittee on Trade Chairman Earl Blumenauer (D-OR-3) and Ranking Member Vern Buchanan (R-FL-16) ahead of the Subcommittee on Trade’s upcoming hearing regarding U.S. competitiveness with China.
“As companies in the U.S. continue to recover from the global pandemic, and the massive supply chain disruptions we are now facing due to the shipping crisis we continue to call upon the Administration to refocus our trade debate with China so the pain is not disproportionately felt by U.S. companies,” Americans for Free Trade wrote. “To date, U.S. Customs and Border Protection has collected over $113 billion dollars in tariffs from American companies who import products from China. These taxes have increased the cost of doing business in the United States and have further exacerbated inflation concerns. They are a financial burden on American businesses – negatively impacting their ability to invest in their companies, hire more American workers, and remain competitive globally.”
More than 175 trade associations signed on to the letter. The full text of the letter may be found here and below.
December 1, 2021
The Honorable Richard Neal
Chairman
House Ways & Means Committee
Washington, DC 20515
The Honorable Kevin Brady
Ranking Member
House Ways & Means Committee
Washington, DC 20515
The Honorable Earl Blumenauer
Chairman
House Ways & Means Subcommittee on Trade
Washington, DC 20515
The Honorable Vern Buchanan
Ranking Member
House Ways & Means Subcommittee on Trade
Washington, DC 20515
RE: House Action on Section 301 China Product Exclusions Process
Dear Chairman Neal, Ranking Member Brady, Chairman Blumenauer and Ranking Member Buchanan:
On behalf of the undersigned members of Americans for Free Trade, we thank the Ways & Means Subcommittee on Trade for holding an important hearing on U.S. competitiveness issues with China. As part of that hearing, we are writing to follow up on a June 30 letter to House leadership expressing strong support for elements of the Trade Act of 2021 that were included in the U.S. Innovation and Competition Act (S. 1260) as passed by the Senate. We believe it is critical that the House join the Senate in passing legislation that among other things, fully restarts and reinvigorates the Section 301 China tariffs exclusion process administered by the Office of the U.S. Trade Representative (USTR). It is imperative that this process be retroactive for previously expired exclusions as well as for all COVID-19-response product exclusions dating back to the start of the pandemic and establish a new transparent process for all products covered by the current 301 tariffs.
By way of background, Americans for Free Trade 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 employ tens of millions of Americans through our vast supply chains.
As companies in the U.S. continue to recover from the global pandemic, and the massive supply chain disruptions we are now facing due to the shipping crisis we continue to call upon the Administration to refocus our trade debate with China so the pain is not disproportionately felt by U.S. companies. To date, U.S. Customs and Border Protection has collected over $113 billion dollars in tariffs from American companies who import products from China. These taxes have increased the cost of doing business in the United States and have further exacerbated inflation concerns. They are a financial burden on American businesses – negatively impacting their ability to invest in their companies, hire more American workers, and remain competitive globally.
While we continue to call for an end to the trade war and elimination of the additional penalty tariffs on U.S. companies as well as China’s retaliatory tariffs, we believe reinstituting a fair and transparent section 301 exclusion process is critical to helping U.S. businesses as they continue to recover from the COVID-19 pandemic. According to a recent Moody’s Investor Service Report, the tariffs “hit American businesses and consumers hardest,” with China absorbing only 7.6 percent of the tariffs “while the rest of the tab was picked up by Americans.”
We appreciate that USTR is undertaking a limited exclusion renewal extension process. However, we strongly believe that the language as included in the Trade Act of 2021 would do far more to alleviate the economic burden on American businesses and consumers by immediately reinstating product exclusions that expired throughout 2020 – in the middle of the pandemic and economic recession – through at least December 31, 2022. It would also require USTR to implement a new product exclusion process and apply specific criteria in determining whether to grant an exclusion. These criteria will help to ensure that the exclusion process functions in a fair, consistent, and transparent manner and that American businesses do not suffer disproportionate economic harm as a result of the tariffs.
We look forward to working with Congress and the Administration to address the ongoing negative impact that these tariffs continue to have on American businesses, American workers, and American consumers. Until the tariffs are fully removed, providing a retroactive renewal to all previously expired exclusions and reinstituting a fair and transparent exclusion process will provide the targeted relief that will help U.S. businesses recover from the economic recession and continue to invest in their businesses and workers here at home.
Thank you for your consideration.
Sincerely,
Accessories Council
ACT | The App Association
Agriculture Transportation Coalition (AgTC)
ALMA, International (Association of Loudspeaker Manufacturing and Acoustics)
American Apparel & Footwear Association (AAFA)
American Association of Exporters and Importers (AAEI)
American Association of Port Authorities
American Bakers Association
American Bridal & Prom Industry Association (ABPIA)
American Chemistry Council
American Coatings Association, Inc. (ACA)
American Down and Feather Council
American Fly Fishing Trade Association
American Home Furnishings Alliance
American Lighting Association
American Petroleum Institute
American Pyrotechnics Association
American Rental Association
American Seed Trade Association
American Specialty Toy Retailing Association
American Wind Energy Association
Arizona Technology Council
Arkansas Grocers and Retail Merchants Association
Association For Creative Industries
Association for PRINT Technologies
Association of American Publishers
Association of Equipment Manufacturers (AEM)
Association of Home Appliance Manufacturers
Auto Care Association
Beer Institute
BSA | The Software Alliance
Business Alliance for Customs Modernization
California Bottled Water Association
California Retailers Association
Carolina Loggers Association
Central States Bottled Water Association
Chemical Industry Council of Delaware (CICD)
Coalition of New England Companies for Trade (CONECT)
Coalition of Services Industries (CSI)
Colorado Retail Council
Columbia River Customs Brokers and Forwarders Assn.
Computer & Communications Industry Association (CCIA)
Computing Technology Industry Association (CompTIA)
Consumer Brands Association
Consumer Technology Association
Council of Fashion Designers of America (CFDA)
CropLife America
Customs Brokers & Freight Forwarders Assn. of Washington State
Customs Brokers & Freight Forwarders of Northern California
Distilled Spirits Council of the United States
Electronic Transactions Association
Energy Workforce & Technology Council
Experiential Designers and Producers Association
Fashion Accessories Shippers Association (FASA)
Fashion Jewelry & Accessories Trade Association
Flexible Packaging Association
Florida Ports Council
Florida Retail Federation
Footwear Distributors and Retailers of America (FDRA)
Fragrance Creators Association
Game Manufacturers Association
Gemini Shippers Association
Georgia Retailers
Global Business Alliance
Global Chamber®
Global Cold Chain Alliance
Greeting Card Association
Halloween Industry Association
Home Fashion Products Association
Home Furnishings Association
Household and Commercial Products Association
Idaho Retailers Association
Illinois Retail Merchants Association
Independent Office Products & Furniture Dealers Association (IOPFDA)
Indiana Retail Council
Information Technology Industry Council (ITI)
International Association of Amusement Parks and Attractions (IAAPA)
International Bottled Water Association (IBWA)
International Foodservice Distributors Association
International Housewares Association
International Warehouse and Logistics Association
International Wood Products Association
Internet Association
ISSA – The Worldwide Cleaning Industry Association
Jeweler’s Vigilance Committee
Juice Products Association (JPA)
Juvenile Products Manufacturers Association
Leather and Hide Council of America
Licensing Industry Merchandisers’ Association
Los Angeles Customs Brokers and Freight Forwarders Assn.
Louisiana Retailers Association
Maine Grocers & Food Producers Association
Maine Lobster Dealers’ Association
Maritime Exchange for the Delaware River and Bay
Maryland Retailers Association
Methanol Institute
Michigan Chemistry Council
Michigan Retailers Association
Minnesota Retailers Association
Missouri Retailers Association
Motor & Equipment Manufacturers Association
Motorcycle Industry Council
NAPIM (National Association of Printing Ink Manufacturers)
National Association of Chain Drug Stores (NACDS)
National Association of Chemical Distributors (NACD)
National Association of Foreign-Trade Zones (NAFTZ)
National Association of Home Builders
National Association of Music Merchants
National Association of Printing Ink Manufacturers
National Association of Trailer Manufacturers (NATM)
National Confectioners Association
National Council of Chain Restaurants
National Customs Brokers and Freight Forwarders Association of America
National Electrical Manufacturers Association (NEMA)
National Fisheries Institute
National Foreign Trade Council
National Grocers Association
National Lumber and Building Material Dealers Association
National Marine Manufacturers Association
National Pork Producers Council
National Restaurant Association
National Retail Federation
National Ski & Snowboard Retailers Association
National Sporting Goods Association
Natural Products Association
New Jersey Retail Merchants Association
North American Association of Uniform
Manufacturers and Distributors (NAUMD)
North Carolina Retail Merchants Association
Ohio Council of Retail Merchants
Outdoor Industry Association
Pacific Coast Council of Customs Brokers and
Freight Forwarders Assns. Inc.
Pennsylvania Retailers’ Association
PeopleforBikes
Personal Care Products Council
Pet Industry Joint Advisory Council
Plumbing Manufacturers International
Power Tool Institute (PTI)
Promotional Products Association International
Recreational Off-Highway Vehicle Association
Retail Association of Maine
Retail Council of New York State
Retail Industry Leaders Association
Retailers Association of Massachusetts
RISE (Responsible Industry for a Sound Environment)
RV Industry Association
San Diego Customs Brokers and Forwarders Assn.
SEMI
Semiconductor Industry Association (SIA)
Snowsports Industries America
Software & Information Industry Association (SIIA)
South Atlantic Bottled Water Association
South Dakota Retailers Association
Specialty Equipment Market Association
Specialty Vehicle Institute of America
Sports & Fitness Industry Association
TechNet
Telecommunications Industry Association (TIA)
Texas Retailers Association
Texas Water Infrastructure Network
The Airforwarders Association
The Fertilizer Institute
The Hardwood Federation
The Toy Association
The Vinyl Institute
Travel Goods Association
Truck & Engine Manufacturers Association (EMA)
United States Council for International Business
United States Fashion Industry Association
US Global Value Chain Coalition
US-China Business Council
Virginia Retail Merchants Association
Virginia-DC District Export Council (VA-DC DEC)
Washington Retail Association
Window and Door Manufacturers Association
World Pet Association, Inc. (WPA)CC: Members of the House Ways & Means Committee