Section 301 tariff reform key to helping U.S. manufacturers compete with China


Washington D.C.- U.S. Sen. Pat Toomey (R-Pa.) is urging Congress to create an exclusion process for 301 tariffs as the House and Senate meet to reconcile differences between the United States Innovation and Competition Act (USICA) and the America Creating Opportunities, Pre-Technological Excellence and Economic Strength (COMPETES) Act.

“American manufacturing must be able to compete effectively with everyone, including China. With a Section 301 tariff exclusion process, US manufacturers will be in a better position to obtain the materials they need for production. As the conference committee unites to improve USICA and the COMPETES Act, I urge its members to prioritize restoring this process of exclusion. Not allowing this remedy will harm our own manufacturers, putting these companies at a disadvantage against overseas competitors at a time when we should be allowing their success,” said Toomey.

Senator Toomey offered a motion to instruct (MTI) this week, which recommends the conference committee reinstate an exclusion process for 301 tariffs under the consolidated legislation. MTIs serve as non-binding recommendations to the conference committee.

The previous administration created a Section 301 tariff exclusion process, which allowed U.S. manufacturers to seek temporary tariff relief on imported components they were unable to obtain from other sources. The Biden administration has so far failed to fully reinstate this process of exclusion, resulting in the excessive burden of tariffs on many U.S. manufacturers even on inputs without a viable domestic source.

When the Senate considered USICA, Senators Wyden and Crapo introduced an amendment that, among other things, would reinstate the Section 301 disqualification process. This amendment passed the Senate 91-4 with strong support bipartisan; yet the House did not include the 301 exclusion process in its own version of the bill.


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