MTB Passes Senate Unanimously but House Must Approve Again

A slightly changed Miscellaneous Tariff Bill passed the Senate unanimously July 26, but it likely will not take effect until the fall, because the House of Representatives has left for a five-week August recess. Once the revised version passes the House and is signed by the president, it will take effect in 30 days. The House passed its version of the bill Jan. 16, by a 402-0 vote (see 1801170012).

The Senate version stripped from the list propargyl butylcarbamate, the pesticide esfenvalerate, rotary cutting hand tools, and electric cargo vehicles and bodies for electric vehicles. It also stripped out collapsible insulated bags after Reuters wrote about a Florida firm that wanted to make that product. The same story quoted a knife maker who had not formally objected to the inclusion of full-tang knives on the list; those are now gone, as well. Full tariff reductions are not available when the forgone tariffs total more than $500,000 annually, but most duties are reduced to zero.

The bill extends customs user fees through Oct. 13, 2027; the tariff reductions last through Dec. 31, 2020.

The National Association of Manufacturers hailed the bill's passage. "Right now, manufacturers are hit with costly, senseless taxes any time they buy products or supplies that aren’t available in the United States. It makes no sense because it is a direct and punishing tax on making things in America and for creating jobs in America," Jay Timmons said in a statement. According to Reuters, about 55 percent of the goods given duty reductions are manufacturing inputs, such as chemicals. Consumer goods such as sweaters, shoes, blenders, food processors, pillows, slow cookers and unicycles are a significant part of the list.

Steve Lamar, executive vice president of the American Apparel and Footwear Association, said he expects the House to act on the revised bill either the first or second week of September. The Senate was working closely with the House on the changes, so none should present problems in a second vote, he said. He said while it may take a week or so after passage for the president's signature, he would not expect a veto on the tariff reductions. "This is a bill that supports jobs in the United States, it supports manufacturers. It passed by unanimous consent in the Senate, very, very strong support in both chambers. It's not often you get such strong bicameral support for a trade bill," Lamar said.