Bipartisan Bill Introduced in House, Senate to Permanently Waive Tariffs on Baby Formula
House Ways and Means Trade Subcommittee Chairman Adrian Smith, R-Neb., along with Rep. Don Beyer, D-Va., introduced the Formula 3.0 Act, a bill that would permanently waive tariffs and lower trade barriers on imported infant formula.
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Sens. Mike Lee, R-Utah, and Bob Menendez, D-N.J., co-sponsored the companion bill in the Senate.
“The fragility of the domestic infant formula market was put into stark relief last year when a problem at just one company’s facility led to a drastic supply shortage and massive price increases for parents nationwide,” Beyer said in a June 1 press release. “Due to high tariffs and other protectionist obstacles preventing high-quality infant formula imports from the global market, parents with small children were left scrambling to find affordable alternatives."
The elimination of tariffs, which are $1.217/kg plus either 17.5% or 16%, would begin 120 days after enactment. FDA also would be instructed to allow imports from all companies that received letters of marketing enforcement discretion during the formula crisis. It would also eliminate tariffs on powders used by domestic formula manufacturers.
Smith said since the tariffs returned at the end of 2022, formula is less available.
“The welfare of our families, especially our infants, is of utmost importance,” Lee said in the press release. “The formula shortage has highlighted the need for long-term solutions that promote accessibility and affordability. With the FORMULA 3.0 Act, we take a significant step towards permanently eliminating trade barriers and ensuring a stable supply of infant formula for families across the nation.”
Domestic milk producers want the tariffs to remain to protect their market share (see 2211180064). There were almost no formula imports before the shortage that led to a July 2022 temporary waiver of tariffs and tariff rate quotas.