Lower Import Tariffs to Help Manufacturers

The U.S. Manufacturing Enhancement Act helps manufacturers generate employment and boost exports

President Obama has signed into law the U.S. Manufacturing Enhancement Act. The bill suspends or reduces the import tariffs on raw materials that are used by U.S. manufacturers and that are not available in the U.S. Products include certain chemicals, synthetic fabrics, herbicides, among others.

With this action, the government hopes to help manufacturers reduce cost and be able to generate more employment. The government also expects the reduction in cost will make American products more competitive in foreign markets, which will translate into a boost for exports. The National Association of Manufacturers estimates that the bill would boost production by $4.6 billion and support almost 90,000 jobs.

The Act supports the president’s National Export Initiative to promote exporting and it comes at a time when the administration is being criticized for not passing the free trade agreements with Colombia, Korea and Panama; and after the U.S. Department of Commerce announced the trade deficit in June climbed to its highest level since October 2008.