Legislation would hamper efforts to reshore domestic production
Washington. The Coalition for a Prosperous America (CPA) is urging President Trump to consider vetoing legislation that would unilaterally eliminate tariffs on a variety of imported foods and goods that have been offshored and are no longer produced in the US. Both the House and Senate have passed versions of the Miscellaneous Tariff Bill Act of 2018 (HR 4318), which will ultimately require the president’s signature.
“The Miscellaneous Tariff Bill should be called the ‘Never Make It Here Again Act’,” said CPA Chairman Dan DiMicco. “It has flown beneath the radar and is a holdover from the past. At precisely the moment when the president is tackling foreign trade cheating and trying to create leverage, Congress is again engaging in unilateral trade disarmament. This bill fails to consider that many of the products included could be manufactured in the US.”
The Miscellaneous Tariff Bill conflicts with existing governmental efforts. Congress has previously passed the National Manufacturing Strategy Act to help reshore domestic production and rebuild supply chains. The president is also working hard to shake up global supply chains and encourage more domestic production. While the International Trade Commission certifies that the products in the Miscellaneous Tariff Bill are not currently made in America, there is no determination of whether the same goods could be reasonably produced domestically in the future. The bill serves as a barrier to re-establishing future production.
“Our board of manufacturing, agriculture, and labor members voted to oppose the elimination of tariffs contained in this bill,” said Michael Stumo, CEO of the CPA. “This is a giveaway to foreign manufacturers and other countries. In this era of trade cheating, currency misalignment, and subsidized foreign overproduction, this legislation grants tariff cuts in return for zero concessions from other countries. If Congress has any foresight, and wants to help grow good-paying, middle-class jobs in the coming years, it must grow the domestic production of food and goods.”
Stumo continued, “America overconsumes and underproduces, as evidenced by our decades-long deindustrialization and our trade deficit. Congress needs to pivot from listening to an import lobby that supports cheap imported consumption to a consistent strategy of increasing domestic production of food and goods. We encourage President Trump to veto this legislation since it runs counter to his emerging trade strategy.”