As the House Ways and Means Committee discusses moving toward a proposal closer to the Senate Finance Committee chairman's bill to restrict de minimis, the top Republican on the Finance Committee is not publicly opposing the core ideas of that bill -- removing apparel and footwear from eligibility from all countries, and not allowing goods subject to Section 301 tariffs to enter duty-free.
The administration rebranded two pending rulemaking processes and revived one that was abandoned in 2021 to address the compliance risks of de minimis shipments as well as shrink the volume of direct-to-consumer imports.
Tariffs on imports from China of electric vehicles, EV batteries, solar cells and wafers, face masks, needles and syringes, critical minerals and steel and aluminum will go up Sept. 27, with more Section 301 tariff hikes planned for Jan. 1, 2025, and Jan. 1, 2026.
It's not clear whether removing all Chinese goods or apparel from de minimis would shrink the universe of duty-free imports the most, but the latter approach, combined with a restriction for Section 301 tariff targets, may be gaining support on the Hill.
The House of Representatives will not be voting on a de minimis restriction as part of its "China week," according to a list of 31 bills published by its leadership Sept. 3. House Speaker Mike Johnson, R-La., had said in July that he expected changes to de minimis to be part of the package (see 2407080049).
Senate Finance Committee Chairman Ron Wyden, D-Ore., formally unveiled a widely anticipated bipartisan bill Aug. 8 that would restrict foreign goods from eligibility for de minimis shipments.
Senate Finance Committee Chairman Ron Wyden, D-Ore., is sharing draft text with the trade of a bill that would remove goods subject to Section 301 tariffs from the de minimis entry lane, along with any categories deemed "import sensitive" in the Generalized System of Preferences benefits program legislation.
Sen. Chuck Grassley, R-Iowa, who has traditionally been a defender of the current law on de minimis (see 1907300048), said that while he's not up for lowering the $800 threshold, he would be willing to change the low value import process to combat fentanyl, as the White House is proposing.
Groups of law enforcement and advocates for opiate addicts, along with the Coalition for a Prosperous America, told the House Ways and Means Committee that while they appreciate its action to restrict de minimis for articles subject to Section 301 tariffs, they hope members develop a "comprehensive solution" to the de minimis crisis.
Although all members of the House Ways and Means Committee supported a bill renewing the Generalized System of Preferences benefits program, the bill proceeded to the House floor on a split bipartisan vote of 17-24 as Democrats unsuccessfully called to include an extension of the Trade Adjustment Assistance for Workers program, which lapsed in 2022.