Report on Economic Effect of MTB Says Most Importers of Consumer Goods Do Not Pass Along Savings
A new report on the economic impact of the tariff reductions on 1,655 products covered by the Miscellaneous Tariff Bill finds a tiny effect on GDP from the $179 million in duties saved over seven months.
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Only 76 percent of MTB products on the list were imported during that time.
Chemicals used in manufacturing account for 60 percent of the imports. Importing firms did not capture the full tariff savings, and chemical users captured the lowest percentage of those savings, about half.
Consumer goods, such as luggage or jewelry, had the highest tariff rates before MTB, an average of 9.4 percent, and the firms that import those goods paid 6.5 percent less for them. Although consumer good importers captured the most savings due to MTB, they were the least likely to lower prices for their customers -- just 16 percent of respondents said they plan to do so.
Some importers complained that Section 301 tariffs interfered with the MTB benefits. But Only $839 million of the $5.4 billion in imports were affected by Section 301.