Lack of various tariff bills hamstring manufacturers

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As manufacturers continue to lead the US economic recovery, they face a real and preventable challenge. Because Congress failed to act, manufacturers in the United States have been operating without miscellaneous tariff bills since January, resulting in higher prices, greater difficulty in competing with overseas companies, and harm. to American workers.

The context: The MTB is temporarily eliminating tariffs on imported materials that are not manufactured at all in the United States or that are not available in sufficient quantities. It boosts American competitiveness and ensures that products made in the United States are competitive with products made outside the country.

  • Typically, mountain biking is reauthorized every few years. In 2018, Congress unanimously passed the Miscellaneous Tariff Bill Act of 2018, which reauthorized mountain biking until 2020. Unfortunately, the bill expired at the end of last year and Congress did not. failed to act, leaving manufacturers in the United States to pay an additional $ 1.3 million a day in taxes on vital products not available in that country.

What’s happening now: While the Senate passed an ATV law in June 2021 as part of the U.S. Innovation and Competition Act, the House has yet to act. If the House does not pass bipartisan ATV legislation soon, manufacturers, their workers and their communities will continue to face unnecessary additional costs, as did Dow and Element Electronics.

Impact on Manufacturers in the United States: Manufacturers like Dow are feeling the impact. As prices rise for everyone, manufacturers are also struggling with rising costs, making it difficult to run profitable production and affect the ability to maintain and expand opportunities for American workers.

  • “For Dow, the MTB supports up to 6,000 jobs across the United States, from Michigan and Texas to Illinois, Kentucky and beyond,” said Eric Friedman, senior director of federal government affairs at Dow. “Dow is the largest materials science company in North America. It is essential for us to ensure that we have competitive access to our essential inputs for our operations in the United States and that we are able to manage costs.

Meanwhile, tariffs also create higher prices for consumers, making it more difficult for Americans to purchase products from American companies.

  • “The expiration of the ATV is impacting several lines of products that Americans use every day, from textiles and cosmetics to cleaning products and insulation,” Friedman said. “These value chains are inextricably linked. Rising chemicals costs impact the 96% of downstream manufacturing that uses our products to manufacture finished products for US and global markets. Making our supply chains competitive with ATVs also helps our consumers who have to manage their costs. “

The harm for small businesses: For TV producer Element Electronics, headquartered in Winnsboro, South Carolina, the abandonment of ATVs caused a major readjustment, forcing them to downsize and lose workers.

  • “Due to the ATV failure… Element went from operating at full capacity and over 520 team members at the end of [2020] to operate just four lines, and employment has fallen to 370 team members, ”said David Baer, ​​chief operating officer and general counsel at Element Electronics, in recent testimony to Congress.

For Element, ATV restoration is a pressing issue that would help them compete with overseas businesses and re-engage consumers across the country and around the world.

  • “Leveling the playing field through retroactive ATV restoration… will allow Element employees to compete successfully against anyone again,” Baer said. “Plus, passing this bipartisan legislation will allow Element and many other companies to get back to doing what we do best: employing hundreds of hard-working Americans in high-paying jobs in a community that matters.” on Element as one of its main sources of income. economic growth.”

What we say: “The Miscellaneous Tariff Bill supports manufacturers and their workers who make things in America and who have been instrumental in the US economic recovery,” said Ali Aafedt, director of trade facilitation policy at NAM. “Amid a global pandemic, severe supply chain shortages and other hurdles, Congress’ lack of action on mountain biking is another challenge. Congress has the opportunity to support manufacturers, workers and consumers in the United States by passing bipartisan ATV legislation by the end of the year.


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