NEXT STEPS ON DE-MINIMIS: Lawmakers from both sides of the aisle and U.S. industry groups praised the Biden administration’s new tariff action to address the “overuse and abuse” of the de minimis provision, which has been blamed for causing a flood of cheap imports from China. But the proposed reforms, they said, are no substitute for Congress’ duty to impose comprehensive restrictions and close the so-called de minimis “loophole,” which waives tariffs on shipments under $800. Reminder: White House officials said Friday that they are launching a new regulatory process to remove de minimis treatment on imports subject to Section 301, Section 201 and Section 232 tariffs, some of which were put in place by former President Donald Trump. They also called on Congress to take more action on the provision before the end of the year. Some lawmakers quickly seconded that ask. “This is only the first step and does not negate the need for Congress to act on a comprehensive solution,” Reps. Earl Blumenauer (D-Ore.) and Rosa DeLauro (D-Conn.), said on Friday, after praising the Biden administration’s announcement. Up next: One House aide close to discussions, told Morning Trade that Democrats are eyeing the lame duck as the next most likely vehicle to move a de minimis fix. Ways and Means Committee Chair Jason Smith (R-Mo.) agreed with the need for further action and pointed to similarities between the White House order and a measure introduced by Rep. Greg Murphy (R-NC) and advanced by the committee in April. (However, the proposal remains stalled after failing to receive support from the committee’s Democrats, who didn’t think it went far enough to eliminate the “loophole.”) “They say imitation is the highest form of flattery, so I am pleased Democrats in Washington are once again acknowledging that Republicans’ tough-on-China trade policy works,” he said in a statement Friday. The largest federation of unions, AFL-CIO; the National Council of Textile Organizations; and the Coalition for a Prosperous America — all of which have pushed for increased tariff protection — echoed a similar call for Congress to pick up where the administration left off. The Alliance for American Manufacturing even called out House lawmakers for failing to bring legislation on de minimis to a vote during a so-called China Week — despite Speaker Mike Johnson laying out expectations for action on both de minimis and outbound investment by year’s end. Still, other groups were less impressed by the White House’s action. The Information Technology Industry Council warned the administration against “overly broad restrictions that could lead to significant supply chain delays or unintended harms.”
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