Legislative Update: China Tariffs, Sourcing
For more information on pursuing trade policy interests through the legislative process, please contact Nicole Bivens Collinson.
China Tariffs. The Export Tariff Act (H.R. 7665, introduced July 16 by Reps. Walorski, R-Ind., and Peterson, D-Minn.) would direct the U.S. trade representative to extend current Section 301 tariff exclusions on Chinese goods for a year unless USTR finds that (1) the product is strategically important or related to “Made in China 2025” or other Chinese industrial programs and (2) extending the exclusion would cause severe harm to the U.S.
“The product exclusion process has brought much-needed relief to those paying the cost of tariffs, but many U.S. companies will face serious economic harm if their exclusions are not renewed before they expire,” Walorski said. “Extending these exclusions for another year is a commonsense way to provide businesses with the long-term certainty they need, especially during the coronavirus crisis.”
Sourcing. The Reshoring American Manufacturing Act (H.R. 7594, introduced July 13 by Rep. Posey, F-Fla.) would provide a tax credit for certain expenses of moving manufacturing equipment from China to the U.S. This bill would require companies to put such equipment into production in the U.S. and includes a provision to prevent companies from moving the same equipment back out of the U.S. if they take advantage of the tax credit.