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In May, the American Chemistry Council (ACC) strengthened our commercial representation by highlighting the importance of imports into US chemical manufacturing and calling on Ambassador Tai and the US Senate to take action Other tariff calculation (MTB)that would impose tariffs on imported inputs, which are vital to the global competitiveness of our industry.
Fortunately, our call was answered.
The U.S. Innovation and Competition Act 2021 (USICA), which was passed by the Senate on June 8 and which includes the Trade Act of Sen. Mike Crapo and Sen. Ron Wyden of 2021, could usher in much-needed tariff relief for US chemical manufacturers that rely on selected imported inputs to strengthen their production processes here at home.
MTB’s expiry cost US companies millions in tariffs
In the two years before January 1, 2021, the law on various tariffs had already suspended and reduced the most favored nation tariffs (MFN) more than 1,000 imported inputs considered essential to the manufacture of chemicals in the United States.
Since the end of the MTB at the end of 2020, however, US manufacturers have been paying on average $ 1.3 million per day in tariffs on products that are neither made in the United States nor available in sufficient quantities.
The business of chemistry is based on trade; Our access to inexpensive imports from a variety of sources enables our export competitiveness. In 2020, our trade surplus was over $ 25 billion even during the pandemic. But that trade surplus could continue to grow with a smarter approach to trade policy.
The MTB could allow US chemical manufacturers to leverage the tariff savings that the MTB offers to do more in America, respond to growing global demand for innovative chemical products, and create high-skilled, high-paying US jobs.
The cost savings from the MTB could also be shared with downstream customers in a variety of industries, from agriculture to automotive to construction.
A possible turning point for US trade policy?
As a country, we are facing a surge in economic recovery and the weight of tariffs is constraining US economic growth and job creation in the waning days of the pandemic.
Fortunately, USICA, which President Biden said will strengthen America’s innovation infrastructure, could mark a turning point in US trade policy.
Now it’s down to the house – and ACC will team up with our coalition partners to support its progress to the finish line.