U.S. Representative Jackie Walorski (R-Ind.) Tuesday led a bipartisan group of more than 100 members of Congress in urging U.S. Trade Representative (USTR) Katherine Tai to provide targeted relief to American businesses by establishing a product exclusion process for Section 301 tariffs.
“While we strongly support tough and effective action to address China’s unfair trade practices, we believe that there must be a meaningful opportunity for American companies to petition for relief from tariffs,” the members wrote. “Many U.S. companies are eager to move supply chains out of China for a variety of reasons and began seeking reliable alternative suppliers over the last several years. However, in many instances those efforts were crippled by travel disruptions and global economic turmoil prompted by COVID-19, particularly for smaller U.S. businesses that do not have a global footprint. U.S. employers need more time to adapt.”
USTR recently extended tariff exclusions for products related to COVID-19, but exclusions for other products expired on December 31, 2020. Many of these products are critical inputs for U.S. manufacturing facilities and supply chains
In the letter, Walorski and 101 of her colleagues urged USTR to allow for targeted tariff relief through a process that is “transparent, consistently applied, based on facts,” and includes “expedited procedures for those who had been granted exclusions in the past.” They also said the process should be “administered in a way that would not undermine the broader and critically important bipartisan support to address serious concerns with China’s behavior.”
A signed copy of the letter is available here. The full text is below.
April 27, 2021
The Honorable Katherine C. Tai
United States Trade Representative
Office of the United State Trade Representative
600 17th Street NW
Washington, DC 20508
Dear Ambassador Tai:
We write today to express strong support for the establishment of a new exclusion process to allow U.S. importers to request relief from the Section 301 tariffs on imports from China. While we strongly support tough and effective action to address China’s unfair trade practices, we believe that there must be a meaningful opportunity for American companies to petition for relief from tariffs. We appreciate USTR’s recent extension of tariff exclusions for COVID-19-related products. However, we feel that the current exclusions are insufficient to provide the badly needed relief for businesses and workers struggling with the unprecedented economic hardship caused by the pandemic. A new exclusion process would provide support to domestic businesses and their workers as many of the products facing the Section 301 tariffs are critical inputs for U.S. supply chains and manufacturing plants that have sustained U.S. jobs through this crisis. Such a process would also provide American businesses across a variety of industries, including manufacturing, agriculture, fishing, retail, energy, technology, and services, with the opportunity to petition for exclusions consistent with U.S. economic and foreign policy interests.
In the midst of our constituents’ struggle with COVID-19, American producers, employers, workers, and communities have suffered an additional economic burden: the section 301 tariffs. The lapse of critical exclusions, many of which expired on December 31, 2020, handed many businesses and their workers a significant bill while budgets were already tight. We all agree that we need to execute a bold, strategic plan to hold China accountable for its unfair trade practices, while encouraging businesses to manufacture and operate in the United States. However, while we strategically and comprehensively engage with China, including through tough enforcement, we must also support good-paying jobs in the United States. Many U.S. companies are eager to move supply chains out of China for a variety of reasons and began seeking reliable alternative suppliers over the last several years. However, in many instances those efforts were crippled by travel disruptions and global economic turmoil prompted by COVID-19, particularly for smaller U.S. businesses that do not have a global footprint. U.S. employers need more time to adapt.
Further, re-establishing an exclusion process would be consistent with a congressional directive in the Consolidated Appropriations Act, 2019 (P.L. 116-6) requiring such a process be established. While one was eventually established, many of the same workers and businesses who were successful in getting relief now find themselves with no avenues of recourse, leaving them at a competitive disadvantage despite already having demonstrated the need for relief.
To support American families, we once again urge USTR to create a pathway for targeted relief from Section 301 tariffs. In our opinion, that process should include a streamlined process for stakeholders to seek relief, including expedited procedures for those who had been granted exclusions in the past. Additionally, in our opinion that process should be transparent, consistently applied, based on facts, including how Section 301 tariffs are applied to businesses, workers and communities, and administered in a way that would not undermine the broader and critically important bipartisan support to address serious concerns with China’s behavior.
Regarding this important matter, we thank you for your full and fair consideration consistent with applicable laws, rules, and regulations.
Sincerely,
Walorski represents the 2nd Congressional District of Indiana, serving as a member of the House Ways and Means Committee and the Ranking Member of the House Ethics Committee.
