WASHINGTON, D.C., (May 2, 2022) — Today, Americans for Free Trade (AFT), a broad coalition of American businesses, trade organizations, and workers united against tariffs, sent a letter to Senate leadership voicing support for the Motion to Instruct proposed by Senator Pat Toomey (R-PA) to include Section 73001 as included in the U.S. Innovation and Competition Act in a final conferenced Bipartisan Innovation Act. This provision would reinvigorate the exclusion process for products subject to additional tariffs under Section 301 of the Trade Act of 1974. 

“We continue to call for an end to the China Section 301 tariffs – including China’s retaliatory tariffs — that have had a disproportionate economic impact on American companies, consumers, and workers and that have failed to change China’s unfair trade practices,” Americans for Free Trade wrote. “But until the tariffs are lifted, we believe reinstituting the Section 301 exclusion process for all covered products is critical to providing interim relief for U.S. businesses.”

177 trade associations signed on to the letter. The full text of the letter may be found here and below.

May 2, 2022

The Honorable Charles Schumer 
Majority Leader
United States Senate 
Washington, DC 20510

The Honorable Mitch McConnell 
Republican Leader
United States Senate 
Washington, DC 20510

RE: Support Senator Toomey Motion to Instruct to Include on Section 301 Product Exclusions Process (Section 73001)

Dear Majority Leader Schumer and Republican Leader McConnell,

On behalf of the undersigned members of Americans for Free Trade, we are writing to express strong support for the Motion to Instruct proposed by Senator Pat Toomey (R-PA) to include Section 73001 as included in the U.S. Innovation and Competition Act (USICA) (S. 1260). This was included as part of the Trade Act of 2021 which received a 91-4 vote as an amendment to USICA. The provision will reinvigorate the exclusion process administered by the Office of the U.S. Trade Representative (USTR) for products subject to additional tariffs under Section 301 of the Trade Act of 1974.

By way of background, Americans for Free Trade represents every part of the U.S. economy including manufacturers, farmers and agribusinesses, retailers, technology companies, service suppliers, natural gas and oil companies, importers, exporters, and other supply chain stakeholders. Collectively, we employ tens of millions of Americans through our vast supply chains.

As U.S. companies continue to recover from the global pandemic, they are now facing ongoing supply chain disruptions and rising inflation. We continue to call upon the administration to resolve the ongoing trade war with China to help ease these challenges. To date, U.S. Customs and Border Protection has collected over $134 billion dollars in tariffs from U.S. companies who import products from China. These taxes increase the cost of doing business in the United States and risk exacerbating increasing inflation. They are a financial burden on U.S businesses – negatively impacting their ability to invest in their companies, hire more American workers, and remain competitive globally.

We continue to call for an end to the China Section 301 tariffs – including China’s retaliatory tariffs – that have had a disproportionate economic impact on American companies, consumers, and workers and that have failed to change China’s unfair trade practices. But until the tariffs are lifted, we believe reinstituting the Section 301 exclusion process for all covered products is critical to providing interim relief for U.S. businesses. According to a recent Moody’s Investor Service Report, the tariffs “hit American businesses and consumers hardest,” with China absorbing only 7.6 percent of the tariffs “while the rest of the tab was picked up by Americans.”

Section 73001 of USICA would alleviate the economic burden on American businesses and consumers by immediately reinstating product exclusions that expired throughout 2020 – in the middle of the pandemic and economic recession – through December 31, 2022. It would also require USTR to implement a new product exclusion process and outlines specific criteria for USTR to consider in determining whether to grant an exclusion. Under these criteria, the exclusion process will function in a fair, consistent, and transparent manner and ensure that American businesses do not suffer disproportionate economic harm as a result of the tariffs.

USTR has thus far failed to act independently – as Section 301 authorizes it to do. USTR recently provided an exclusion process, but this process was limited to a small amount of expired exclusions and did not provide full retroactivity for the exclusions that were reinstated. While these reinstated exclusions are an important first step, a more robust process is needed to provide meaningful relief. This view is shared by at least 141 bipartisan House members and 41 bipartisan Senators who recently wrote to Ambassador Tai urging USTR to open a broader exclusions process. Yet, USTR refuses to act. We therefore urge the Senate to support the Motion to Instruct to include Section 73001 in a final conferenced Bipartisan Innovation Act.

We look forward to working with Congress and the Administration to address the ongoing negative impact of the tariffs on American businesses, American workers, and American consumers by fully lifting the Section 301 tariffs. Reinstituting a fair, transparent, and retroactive exclusion process will provide targeted tariff relief for, U.S. businesses, helping them overcome current economic and supply chain disruptions and enabling them to invest in their businesses and workers here at home.

Thank you for your consideration. 

Sincerely,

Accessories Council

ACT | The App Association

Agriculture Transportation Coalition (AgTC) ALMA, International (Association of

Loudspeaker Manufacturing and Acoustics) American Apparel & Footwear Association

(AAFA)

American Association of Exporters and

Importers (AAEI)

American Association of Port Authorities American Bakers Association

American Bridal & Prom Industry Association

(ABPIA)

American Chemistry Council American Clean Power Association

American Coatings Association, Inc. (ACA) American Down and Feather Council American Fly Fishing Trade Association American Home Furnishings Alliance American Lighting Association

American Petroleum Institute

American Pyrotechnics Association

American Rental Association

American Seed Trade Association

American Specialty Toy Retailing Association American Trucking Association

Arizona Technology Council

Arkansas Grocers and Retail Merchants Association Association For Creative Industries

Association for PRINT Technologies

Association of American Publishers Association of Equipment Manufacturers

(AEM)

Association of Home Appliance Manufacturers Auto Care Association

Beer Institute

BSA | The Software Alliance

Business Alliance for Customs Modernization California Bottled Water Association California Retailers Association

Can Manufacturers Institute

Central States Bottled Water Association Chemical Industry Council of Delaware

(CICD)

Coalition of New England Companies for

Trade (CONECT)

Coalition of Services Industries (CSI) Colorado Retail Council

Columbia River Customs Brokers and

Forwarders Assn.

Computer & Communications Industry

Association (CCIA)

Computing Technology Industry Association

(CompTIA)

Consumer Brands Association

Consumer Technology Association Council of Fashion Designers of America

(CFDA)

CropLife America

Customs Brokers & Freight Forwarders Assn.

of Washington State

Customs Brokers & Freight Forwarders of Northern California

Distilled Spirits Council of the United States Electronic Transactions Association

Energy Workforce & Technology Council Experiential Designers and Producers

Association

Fashion Accessories Shippers Association

(FASA)

Fashion Jewelry & Accessories Trade

Association

Flexible Packaging Association Florida Ports Council

Florida Retail Federation

Footwear Distributors and Retailers of America (FDRA) Fragrance Creators Association

Game Manufacturers Association

Gemini Shippers Association

Georgia Retailers

Global Chamber®

Global Cold Chain Alliance

Greeting Card Association

Halloween Industry Association

Home Fashion Products Association

Home Furnishings Association

Household and Commercial Products Association Idaho Retailers Association

Illinois Retail Merchants Association Independent Office Products & Furniture Dealers

Association (IOPFDA)

Indiana Retail Council

Information Technology Industry Council (ITI) International Association of Amusement Parks

and Attractions (IAAPA)

International Bottled Water Association (IBWA) International Foodservice Distributors Association International Housewares Association

International Warehouse and Logistics Association International Wood Products Association

ISSA – The Worldwide Cleaning Industry Association Jeweler’s Vigilance Committee

Juice Products Association (JPA)

Juvenile Products Manufacturers Association

Leather and Hide Council of America

Licensing Industry Merchandisers’ Association

Los Angeles Customs Brokers and Freight

Forwarders Assn.

Louisiana Retailers Association

Maine Grocers & Food Producers Association Maine Lobster Dealers’ Association

Maritime Exchange for the Delaware River and Bay Maryland Retailers Association

Michigan Chemistry Council

Michigan Retailers Association

Mid-America Bottled Water Association

Minnesota Retailers Association

Missouri Retailers Association

Motor & Equipment Manufacturers Association Motorcycle Industry Council

NAPIM (National Association of Printing Ink Manufacturers)

National Association of Chain Drug Stores (NACDS)

National Association of Chemical Distributors (NACD)

National Association of Foreign-Trade Zones (NAFTZ)

National Association of Home Builders National Association of Music Merchants National Association of Trailer Manufacturers

(NATM)

National Confectioners Association

National Council of Chain Restaurants National Electrical Manufacturers Association

(NEMA)

National Fisheries Institute

National Foreign Trade Council National Grocers Association

National Lumber and Building Material

Dealers Association

National Marine Manufacturers Association National Restaurant Association

National Retail Federation

National Ski & Snowboard Retailers

Association

National Sporting Goods Association Natural Products Association

New Jersey Retail Merchants Association North American Association of Food

Equipment Manufacturers (NAFEM) North American Association of Uniform Manufacturers and Distributors (NAUMD) North Carolina Retail Merchants Association Northeast Bottled Water Association Northwest Bottled Water Association

Ohio Council of Retail Merchants

Outdoor Industry Association

Pacific Coast Council of Customs Brokers and

Freight Forwarders Assns. Inc. Pennsylvania Retailers’ Association PeopleforBikes

Personal Care Products Council

Pet Advocacy Network

Pet Food Institute

Plumbing Manufacturers International

Power Tool Institute (PTI)

PRINTING United Alliance

Promotional Products Association International Recreational Off-Highway Vehicle Association

Retail Association of Maine

Retail Council of New York State

Retail Industry Leaders Association

Retailers Association of Massachusetts

RISE (Responsible Industry for a Sound Environment) RV Industry Association

San Diego Customs Brokers and Forwarders Assn. SEMI

Semiconductor Industry Association (SIA) Snowsports Industries America

Software & Information Industry Association (SIIA) South Atlantic Bottled Water Association

South Dakota Retailers Association

Southeast Bottled Water Association

Specialty Equipment Market Association

Specialty Vehicle Institute of America

Sports & Fitness Industry Association

TechNet

Telecommunications Industry Association (TIA) Texas Water Infrastructure Network

The Airforwarders Association

The Fertilizer Institute

The Hardwood Federation

The Toy Association

Travel Goods Association

Truck & Engine Manufacturers Association (EMA) United States Council for International Business United States Fashion Industry Association

US Global Value Chain Coalition

US-China Business Council

Vinyl Institute

Virginia Retail Merchants Association

Virginia-DC District Export Council (VA-DC DEC) Washington Retail Association

Window and Door Manufacturers Association

World Pet Association, Inc. (WPA)