Wisconsin Ag Connection - Johnson, Steil Press USTR on Denial of Tariff Exclusion Extension

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Johnson, Steil Press USTR on Denial of Tariff Exclusion Extension
Wisconsin Ag Connection - 11/23/2020

A pair of Wisconsin Republican lawmakers would like to know why the federal government has denied some state businesses an extension of the Section 301 tariff exclusion process. In a letter to U.S. Trade Representative Robert Lighthizer last week, U.S. Senator Ron Johnson and Congressman Bryan Steil of Janesville asked the USTR to provide information on the rationale for the denials to Wisconsin companies, including an explanation of the agency's process for reviewing such requests.

According to a press release issued by Johnson's office, USTR granted exclusions from the imposed tariffs to some of businesses for one year back in early 2019, due to either the tariff causing severe economic harm to the business or China being the only source for the product. Some businesses requested another one-year extension of the exclusion, but USTR has denied the requests.

"As we have repeatedly warned, the trade war places U.S. manufacturers and businesses at a competitive disadvantage to businesses in other countries," the letter said. "The winners from the trade war are Washington lobbyists, trade lawyers, and politically connected businesses and industries while hard-working and earnest businesses in Wisconsin and across the country suffer the negative economic consequences. We urge the Administration to listen to the stories of these businesses, and end the self-inflicted harm from the trade war."

Sen. Johnson added that while he appreciates President Trump's concerns with unfair trade practices between the U.S. and its trade partners, many Wisconsin businesses and farmers have had disruptions to the supply chain, along with increased compliance burdens, decreased international competitiveness, lost market access, and other unintended consequences resulting from the trade war.

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