Nowadays, the news headlines swirl with the mention of tariffs, trade wars, and how they will potentially affect the U.S. economy. With a situation that changes almost by the day, US businesses and manufacturers are faced with the challenge of navigating the current tariff waters, and charting new strategies to plan ahead.
True to form, an announcement came out last week that the US Senate had voted on the Miscellaneous Tariff Bill (MTB), that would potentially cut or completely eliminate tariffs on roughly 1,700 items made outside of the US. It's important to note that this would be a temporary reduction in the tariffs. Additionally, it's estimated that the MTB would save nearly $1 million per day for US importers if passed.
To better understand the MTB and how it could affect your business, consider the following:
What is MTB and how does this impact my business?
MTB enacts the temporary reduction or suspension of duties on certain US imports or other technical corrections to the US Harmonized Tariff System. The MTB would reduce or eliminate tariffs on nearly 1,700 imported items that are not manufactured or available domestically.
Is the MTB always available for enactment?
The last MTB passed by Congress expired on December 31, 2012. Since then, many US businesses have paid billions of dollars in tariffs on products that are not made in the US, to the detriment of American jobs and competitiveness.
What is the financial impact on my business if my products qualify?
The MTB of 2018 would eliminate import tariffs of more than $1.1 billion over the next three years. Furthermore, it would boost US manufacturing output by more than $3.1 billion.
When will the MTB become effective?
All signs point toward the bill receiving full approval from governing bodies, in which case it would be enacted in Q4 of 2018.
How will I know if my products qualify?
Products that span different industries are listed on the current MTB. The full outcome and ramifications remain to be seen, but BDP International is actively monitoring the MTB and its effect on our customers.
Stay tuned for more information as it becomes available.