Sponsors (7)
The bill extends and restores tariff preferences that lower costs for U.S. importers and support Haitian exporters and jobs, while trading off reduced federal tariff revenue, added competition for some U.S. producers, and qualification and implementation limits that may hurt some suppliers.
U.S. importers and retailers (and ultimately many consumers) pay lower duties on Haitian apparel and other affected goods because tariff preferences are extended/restored, reducing input and retail costs.
Haitian apparel exporters and workers retain market access under preferential rules through 2035, supporting jobs and economic activity in Haiti's garment sector.
U.S. manufacturers and firms that source the reclassified inputs regain preferential tariff treatment, lowering their input costs and potentially supporting domestic production or lower prices.
Taxpayers face lower federal tariff revenue through the extended/restored preferences, reducing customs receipts and imposing a fiscal cost through at least 2035.
U.S. domestic producers that compete with the newly reclassified or reinstated imports may face increased competition and downward price pressure, potentially harming some domestic manufacturers and rural businesses.
Some Haitian producers may struggle to qualify for duty-free treatment because the applicable content threshold was raised to 60% and annual quantity growth is capped at 1.25%, limiting participation and supply growth.
Based on analysis of 3 sections of legislative text.
Modifies Haiti apparel preferences: sets a 60% content threshold, caps annual increases at 1.25% of aggregate imports, restores prior HTS eligibilities, and extends duty-free treatment to Sept 30, 2035.
Introduced February 26, 2025 by Bill Cassidy · Last progress February 26, 2025
Modifies U.S. preferential apparel rules that apply to Haiti by setting the content threshold to 60% (effective retroactively to Dec 20, 2017), capping annual quantitative increases, and extending duty-free treatment through Sept 30, 2035. Also directs the President to issue a Harmonized Tariff Schedule proclamation restoring certain apparel articles to eligibility if they were eligible on Dec 20, 2006 but lost eligibility by later HTS changes, with a required report to congressional finance committees before the proclamation takes effect.