The bill restores and extends tariff preferences that lower costs and add predictability for importers, consumers, and some exporters, but it limits some Haitian benefits with caps and higher content thresholds, increases import competition for certain U.S. producers, and reduces federal tariff revenue.
Exporters, importers, and customs officials get clearer, more predictable rules because the bill fixes the applicable percentage at 60% for covered goods and restores prior HTS classifications, reducing compliance uncertainty and administrative burden.
Importers of qualifying Caribbean-origin goods regain preferential tariff treatment, lowering import costs for those businesses and making supply chains cheaper and more competitive.
Importers of qualifying Haitian apparel (and the Haitian suppliers that serve them) can continue receiving duty-free treatment through September 30, 2035, preserving cost savings and market access for those trading relationships.
U.S. domestic producers and workers in competing sectors may face increased competition from lower-duty imports, which could pressure domestic firms and jobs in affected industries.
Extending and restoring tariff preferences reduces federal tariff revenue (both from the Haitian preference through 2035 and from restored Caribbean articles), imposing a modest fiscal cost to taxpayers.
The bill caps Haiti's duty‑free apparel volume at 1.25% of U.S. apparel imports annually, which could limit shipments that receive duty-free treatment and raise costs or restrict market access for Haitian exporters and some U.S. importers once the cap is reached.
Based on analysis of 3 sections of legislative text.
Modifies and extends Haiti apparel tariff preferences: sets a 60% content threshold, an annual cap at 1.25% of U.S. apparel imports, and extends the program to Sept 30, 2035; orders HTSUS restorations by proclamation.
Official title: To extend duty-free treatment provided with respect to imports from Haiti under the Caribbean Basin Economic Recovery Act, and for other purposes.
Introduced February 26, 2025 by Gregory Francis Murphy · Last progress February 26, 2025
Extends and modifies U.S. tariff preferences for apparel made in Haiti by changing eligibility rules, imposing a new annual import cap, and lengthening the program’s expiration to September 30, 2035. It also directs the President to restore certain Harmonized Tariff Schedule entries by proclamation for articles that were eligible in 2006 but later lost eligibility because of HTSUS revisions, after a short congressional notification period.