Manufacturing Task Force Co-Chair Says 'Modern' MTB Needed

Rep. Haley Stevens, co-chair of a new 34-member House Democratic Manufacturing Task Force, said that the last expiration of the Miscellaneous Tariff Bill hurt companies. “A lot of manufacturers lost out and a lot of hard-working manufacturing workers lost out on wages,” she said during a press conference March 18.

But Stevens, D-Mich., gave no timeline for renewal when asked about MTB by International Trade Today. “I would be enthusiastic about seeing it get done, but I would like to see it get done with the Buy American provisions, as well as an understanding of what we could potentially be sourcing in the United States that we aren't.” She also said that U.S. Trade Representative Katherine Tai should be at the table for “a modern and fresh look to the Miscellaneous Tariff Bill.”

Stevens noted that some of the inputs that get tariff breaks under the MTB are commodities that can't be produced in the U.S., and also said the last time the MTB was under consideration, there was “a lot of support from companies of all stripes who rely on it.”

More broadly, she noted that higher tariffs can hurt manufacturers. “We still haven’t really gotten the word yet on what’s going to happen to the existing tariff policies in place,” she said. “We want to continue to be tough on China, and fight for fairness. At the same time, though, we want to have a plan to make sure our smaller manufacturers are as competitive as they can be.”

Stevens and Rep. James Clyburn, D-S.C., the other task force co-chair, said the group is looking to shape a legislative agenda as part of the “Build Back Better” approach of the Biden administration. They expect incentives for advanced manufacturing to be part of that package. Both noted that auto manufacturers have had to do temporary shutdowns because of shortages of semiconductors, and said that we should have more semiconductor manufacturing in the U.S.

When asked how carmakers making electric or hybrid models could deal with the USMCA rules of origin when lithium-ion battery production is so limited in North America, Stevens said, “We are going to have to reckon with that. We are going to have to speed it up.” She said there will need to be tax incentives, or access to capital to build that kind of capacity.