Trump vowed to punish companies that moved jobs overseas. Is Congress rewarding them? - home appliances manufacturers in china

This story is common.
Published in the Atlantic Ocean.
Two weeks before the presidential election, Donald Trump flew into a faded textile town in North Carolina and angered the crowd with a signature promise from his campaign: bring back jobs that are shipped overseas.
"If I were president, they wouldn't do that," Trump told cheers . ".
"Believe me, when they say 'We want to send our product --
Whatever they do
I want to say that we want to send our products back to the US and we want your products --35 percent tax.
Let's see if you move.
He listed a list of companies that shut down the state's factories, drawing attention to Leviton Manufacturing, a company that produces light switches and power outlets in homes and offices around the world, including the truth of Trump
Real estate.
"I bought a lot of Leviton switches," Trump said . ".
"I won't buy it anymore. ”Fast-
18 months ahead.
Leverton will now benefit from a bill that will eliminate taxes paid by the company to import its exports made in China
Not to raise them, as Trump has vowed.
Supporters of the bill say it will remove punitive tariffs on raw materials and parts that are vital to U. S. manufacturing.
But this is not all about it.
The legislation contains tariff exemptions as required by Leverton, which exempt hundreds of finished consumer goods --
From the microwave to the pillow to the fishing rod.
It was made in the United States.
Leighton passed a small one.
Known terms allow the abandonment of finished products without competition in the United StatesS. manufacturers.
But Leighton was not asked to disclose that one of the reasons these stores are no longer made in the United States is that the company closed four stores in the United StatesS.
In factories between 2005 and 2013, more than 1,000 jobs were laid off and jobs were transferred to Mexico and China.
"The whole thing is a little smelly," tool maker Tom Kiefer lost 21 years of work when the company's factory in Warwick, Rhode Island was closed.
"Because they sent it to China, it was not made here.
"This legislation, known as the Miscellaneous Tariff Bill, is a symbol of the country's core contradiction in trade policy: Congressional Republicans and many Democrats who support the bill want to ease the tariff burden on businesses --
No matter where they make the product
Although the Republican president promised to punish companies that do not produce in the United StatesS.
The Trump administration has yet to comment publicly on the bill, which was passed in the house on January and is awaiting Senate approval.
So far, his assistant has sent a complicated signal, sent a letter to congressional staff, expressing concerns about a later withdrawal.
Their silence runs counter to the president's outspoken view of trade.
Trump revived the issue from policy dead water and shaken the global economic order this year by imposing new tariffs on solar panels, washing machines, steel and aluminum.
In response to China, he recently threatened to impose tariffs on hundreds of Chinese exports in retaliation for China's technology policies.
At present, Washington's policy differences mean that Trump may impose tariffs on hundreds of products from China later this spring, and Congress is expected to submit a bill to him, asked him to do the exact opposite.
Reduce or eliminate import taxes on finished products, including more than 400 from China.
This is just a confusing example: Nine years after the Obama administration spent billions of dollars trying to build an electric van, the current bill will cut tariffs on electric vans from China
The American automobile industry.
At the same time, Trump's top trade representative-and publicly —
Vowed to raise import fees for Chinese electric vehicles.
Many companies, including Leviton, are actually asking for tax cuts for the same products they used to produce domestically but are now producing overseas.
Giving the company this exemption is equivalent to the return of transferring work to other countries, some workers and the United States. S.
Manufacturers say only others are encouraged to follow.
Looking for companies seeking tax cuts after closing the USS.
ProPublica's factory compared the 1,662 exemption requests in the act with the Labor Department's data on workers who were unemployed due to international trade.
The analysis found that since the Labor Department began tracking in 1975, companies demanding to abandon finished products have eliminated about 175,000 jobs due to outsourcing and competition from foreign imports.
In different ways, industries affected by the bill, especially manufacturing, have left the United States. S. —
Over the past decade alone, more than 150,000 jobs have been lost.
Among those who urged the government to reduce foreign tariffs --
Many consumers believe that the goods produced are typical American companies.
Whirlpool, Caterpillar, PetSmart and Gap all filed petitions with the United StatesS.
The International Trade Commission said that import duties on certain kitchen appliances, clothing, pet supplies and equipment were unnecessary, even if they were manufactured domestically in the past. The fitness-
For example, equipment company Natilus is seeking exemptions for its Bowflex TreadClimber and other heart machinery, which the company now imports from China.
In 2008, Natilus closed the factory in Tulsa, Russia, where it produced the machines, laid off 150 people and transferred production to China and Taiwan.
Cosmetics maker Revlonclosed off its tweezers and nails
50 years later in 2007, the Clippers factory in Elvington, New Jersey.
Now, it requires Congress to remove tariffs on the import of tweezers, nail clippers and nail/pedicure suits from China and South Korea.
In 2012, Rubbermaid left Worcester, Ohio, where it was founded for 90 years and produced many products before.
Now, the company wants to remove tariffs on plastic covers for food containers in China and Malaysia. (
A representative of loverong said that the "majority of functions" performed in New Jersey were transferred to North Carolina and that its application for tariff reduction was in compliance with the law.
Whether it's Nautilus and cypress, an application for exemption from them by phone or email. )
"The whole idea of the Miscellaneous Tariff Bill is that it should apply to the United StatesS. manufacturing —
"It's not retailers and importers," Ohio Democratic Senator Sherrod Brown said . ".
"The immunity here does undermine the intent of Congress.
Congress needs to look at this again.
Supporters of consumers
The product exemption in the bill says it helps the United StatesS.
Even if companies move part of their business to another country, they will continue to do so.
"Everyone wants to make trade a hassle," said Nicole Bivens Collinson, a lobbyists and former trade negotiator who handled several requests
"A lot of the time, it's just because companies are able to source some goods overseas, so they are able to keep the US market stable. S. manufacturing.
The National Manufacturers Association, the biggest supporter of the bill, declined to comment.
But in a blog post, it defended the inclusion of finished products, saying that the removal of tariffs would lower prices for American consumers.
Other supporters noted that the exemption lasted only three years and that the rules limited the government's financial losses on any one project.
While these claims are correct, the removal of these duties still means a substantial tax cut for some companies.
For example, Bayer, a German pharmaceutical and agricultural company, asked to suspend more than 100 products on the bill, including aspirin.
This means that it and other importers of these products will save $100 million in three years.
ProPublica analysis found that this ratio is more than third on projects described by Bayer as finished products.
Amazon itself does not require any exemptions, but since it has also imported these items, it is listed as a possible beneficiary of a $50 million tariff reduction.
Some small manufacturers oppose the competition's exemption requirement, saying they are still producing products in the United States.
Others, such as the American trade associationS.
Textile manufacturers believe that the United States will be less competitive, including finished products. S.
Negotiating positions by lowering trade barriers with other countries without concessions, such as requiring countries to open up markets or raise labor and environmental standards.
For Leviton, moving production overseas could be 112-year-
Old companies intertwined with American industrial history.
The company made a lamp holder for Thomas Edison's light bulb, followed by a bead chain for dog tags worn by WWII soldiers.
Leighton declined to give executives an interview or answer specific questions.
It said in a statement, "We are committed to doing what we can to keep working in the United States. S.
Only by operating elsewhere can we remain competitive, protect our overall business and serve the best interests of our customers.
When Leviton closed its factory in Warwick, it left a hole --
Into a literal.
A few years after the company left the town, a developer demolished the 19th-century iconic red brick factory where the main building of levieton was located.
The company has been there since 1939, and many workers can count the number of relatives of several generations.
"You let the whole family work there," says Kiefer . ".
Before the warehouse closed in 2010, his father worked as a mechanic for nearly 50 years.
When his father went out with a back injury, his mother replaced him and worked "mother Hour" so that she could send the children to school and go home when they came back.
Kiefer's sister works there.
So is his brother. in-
An aunt and two uncles.
Before Trump turned tariffs into means, they had various purposes, first of all, to generate revenue for the federal government before revenue --
Protect the domestic industry from foreign competition.
In general, unless a country is part of independence and freedom
Trade agreements like the North American Free Trade Agreement, importers must tax the products and materials they bring into the United States.
The current cost has been determined through various international negotiations over the past few decades, which has led the United StatesS.
Tariffs are relatively low compared to other countries.
In exchange, American companies are able to sell their products overseas even if they have to pay higher tariffs.
As collateral benefits, leaders often hope that war is less likely between countries that do business together.
Many Americans blame low trade barriers for losing Blue trade.
But there is evidence of competition.
Light trucks with much higher tariffs than cars are mainly made in North America.
But the high import tax on sneakers does not prevent footwear companies from making in Asia.
The Miscellaneous Tariff Bill was designed decades ago to help American manufacturers compete with foreign companies by reducing the cost of importing chemicals, minerals and other essential components that are not available in the country.
But as global trade grew in the 1990 s and 2000 s, the Bills began to include finished consumer goods without American products. S. competitors.
ProPublica analysis found that about 750 of the 1,662 products included in the current bill were identified as finished products. (
The National Association of Manufacturers said only about 400 of them were finished products but declined to explain their quantity. )
In the most recent 2004, there were only dozens of similar tariff bills.
The past bill granted exemptions more informally.
Companies and industry groups just submitted requests to members of Congress, who reviewed them with government experts and inserted them into the Trade Act.
But after House Republicans passed the appropriations ban in 2010, some lawmakers feared the process would be seen as offering special offers.
Therefore, according to the data of the Manufacturers Association, the extension of the past tariff suspension, the failure to approve the new tariff, the annual cost of $0. 75 billion.
In 2016, Congress established a more transparent system requiring companies to submit a petition to the International Trade Commission, an independent federal agency that provides trade expertise to lawmakers and decision makers
The committee reviews these requests and makes suggestions to Congress, based in part on whether there is a relevant domestic manufacturing industry.
Many companies are in line with the original legislative intent to loosen taxes on foreign parts that are essential to producing final products in the United StatesS.
For example, the Lasko product in Pennsylvania is the last remaining product in the United States. S.
The electric base and the manufacturer of the desktop fan, but it imports the motor of the fan from China.
At a congressional hearing last fall, the company's chief operating officer, Ed mccasi, said Rasco hired 638 workers who gathered fans at factories in Tennessee and Texas, earn $16 an hour on average.
The company used to make cars domestically but could not compete with cheaper foreign manufacturers.
McAssey said the tariff reduction "enables us to compete with suppliers in China who will not bear the cost of the livable wages, health insurance and retirement contributions we provide to our employees.
"Supporters of the bill often cite typical examples of small and medium-sized businesses in the United States. S.
Abandoned manufacturers help to compete.
But they rarely mention multinationals like Mattel.
Or retailers like the Home Shopping Network.
They are also seeking tariff relief for products that do not need to be made in the United States. Inside the 500-
Tariffs on hundreds of such items have been reduced: baby carts, hiking boots, pimiento-
Olive, boxing gloves, coffee maker, toaster, plastic spoon and fork, spark and party stick, nicotine gum, pet toy, pajamas, reusable grocery bag, belt, glass vase, basketball makers of Wheelers, yoga mats and stand waffles.
"This is not the purpose of the Miscellaneous Tariff Bill that I thought about," Jennifer Hillman said ,". A professor at Georgetown University, who served as an assistant to the Democratic Party Congress and served on the trade commission.
"It should benefit domestic companies made in the United States.
However, Dan Ikenson of the liberal Cato Institute said there are good reasons to remove tariffs on finished products and parts.
"You see an old textile mill in South Carolina, there is a rusty door, there is a rusty chain around, you see the disease in town, you think it is the cost of trade liberalization, said ikenson.
But what is not seen, he said, is that people have to spend more money to create jobs because they spend less money to buy mouth clothes.
In fact, in support of the exemption request, companies have hardly tried to justify them in order to create jobs in the US manufacturing industry.
Whirlpool wrote that for the cancellation of the microwave oven import fee, "The product supports the United StatesS.
Marketing and distribution work and add to the U. S. -
Assembly of cooking products.
"When the owner of the Ann Taylor store asked for a tariff on women's hats to be suspended, Dorfman Pacific, the headwear company, submitted a public comment as support, note that "the hat provides an additional layer of protection against skin cancer and premature aging.
"The International Trade Commission, after finding out that doing so would harm the interests of the United States, rejected requests from hundreds of companies to incorporate products into the billS. manufacturers.
Congress has further picked the list and removed items such as air conditioners, which could be controversial after Trump blocked operator companies from moving factories to Mexico.
But whether the decision of these companies to close their own factories helps them to get the exemption is not part of the review --
Or lawmakers may know.
ProPublica analyzed the trade commission's database of approval requests for data from the Labor Department's Trade Adjustment Assistance program, which provides economic assistance and job training for workers who have lost their jobs due to increased foreign imports and outsourcing.
In calculating the loss of work, ProPublica excluded companies seeking component exemptions, focusing only on finished products.
Because trade databases identify products when labor data is used in the industry, it is not clear in each case whether the worker produces exactly the same product or only produces similar products.
But with more reports, several companies stand out.
Tulsa tilus's factory in Tulsa started producing stairs during the 1980 fitness boom.
The company bought the ladder machine from bankruptcy and by 2007 it looked stable.
According to local media reports, the business is very good, and Natilus is adding an assembly line and even bringing back jobs from overseas.
But more than a year later, the company announced its closure.
According to the Labor Department, 178 workers were affected as the company moved some production to China and Taiwan.
At that time, there were still many companies in the United States producing fitness equipment. S. But the trade-
Aid data showed a significant number of layoffs following the decision of Natilus, as other companies such as the core industry and Icon Health & Fitness also closed their factories, affecting another 2,000 workers.
Rick Haselton, who helped design TreadClimber, said the company should face penalties for moving manufacturing outside the United States. S.
"It helps them get their work done cheaper," he said . ".
"But the work I do
That's what I rely on.
It was my livelihood, my bread and butter.
The bill seems to have been sacrificed too.
Technology manufacturing like electric vehicles.
In 2010, Smith Electric received $30 million in federal stimulus money to build batteries.
Electric trucks in Kansas City, Missouri.
Then-
President Obama visited the factory and told workers that they were "building an economy for the future of the United States ".
But Smith suspended production at the end of 2013 and set up a joint venture called Nohm with Chinese investors in 2015.
The company has asked Congress to remove 25% of its tariffs on electric commercial vehicles made in China.
The trade commission approved the petition but refused to give it up altogether and only agreed to reduce the tariff slightly. (
The company is now known as Chanje and no one has responded to calls or emails seeking comments. )
Last fall, lawmakers had hardly asked any questions at a sparsely populated Congressional hearing about the finished product contained in the bill.
Democratic Representative Ron King from Wisconsin summed up the mood in the room and said, "It's a bit boring because it's not that controversial.
The bill passed 402 of the House-0.
It is widely expected that the bill will be attached to a comprehensive spending bill passed by Congress, but the bill was excluded because the Trump administration expressed concern about the number of imports from China.
Republican and Democratic congressional aides say the bill is still moving forward as senators deal with some programs.
For example, Brown said in an interview that he managed to remove electric vehicles from the Senate version of the bill, but the amendment has not yet been published.
When Tom Kiefer walked into the Leviton factory shortly after graduating from high school in 1984, the factory was packed with 1,800 workers, many of whom were not highly educated and assembled power sockets, the light switch and lamp holder are mainly operated by hand.
He took part in an apprenticeship program to train new employees as tool manufacturers to help design machines that eventually automate most of their production lines.
At that time, the business manager of the local union had a slogan: "Automation is our savior.
But at the end of 1980, a few years before the North American Free Trade Agreement was signed, Leverton opened a factory in Tijuana, Mexico.
"That's when they started delivering things to Mexico," said Kiefer, 51, who sat with his father, Old Tom Kiefer, on a carousel at the food court at Warwick Mall.
Nick Izz, another former tool maker, was at the end of the parade.
Izzi, 55, said: "When we make automated machines, they send one at a time, which makes us think they just send them to other factories. ”Ground-
A faulty circuit breaker or GFCI socket that Leviton requires exemption from customs duties, especially the labor force --intensive.
They are a power outlet found in the bathroom and kitchen and they are designed to be turned off if the current is in contact with the water.
The stores were made in Warwick for a while, but eventually went to the Leighton factory in Dongguan, China. Kiefer Jr.
On the day the bosses announced that they would close the factory on 2005, his wife was checking their new house.
Three months after he lost his job, he accepted another mechanic's job for $5 an hour, down from his $21 an hour in Leverton.
Still, he felt lucky.
Other staff eventually worked as guards at Wal-Mart or local hospitals.
Izzi said: "before the end, we even asked the Mexicans to come and see us build them so they could build them themselves.
"They came in and they actually complained about Leighton moving all the products they were producing to China . "said.
"Now you know how we feel.
After the Warwick plant was closed, Leverton closed two factories in western North Carolina on 2008 and 2009, and closed one in El Paso on 2013.
The company said in a statement that it still has thousands of employees in the United States. S.
But declined to say how much work was done in manufacturing.
Kiefer Jr. "Most people, although they hate it when they work there, don't have such a place . "said.
"I think half of Rhode Island has worked there," said Kiefer Sr . ".
78 years old, holding a plastic
A cup of coffee foam.
Sure enough, when they were talking in the crowd in the afternoon at the mall, some of the former Leighton workers or their relatives happened to come.
One of them is the factory's long-time trade union leader, Rui jiariño.
The request for a tariff cancellation by Leighton sparked discussion.
"This is the government that encourages them to move their jobs abroad," Carrinho said . ".
But even if Leverton does not now receive a waiver from the outlets, as a technical trade agreement was signed in 2015, tariffs on them will be phased out over the next five years.
"It's just frustrating for me because the country, they're looking for all these hightech jobs —
Many people cannot do such work . "said.
"They want manufacturing that can be done by people who can work by hand.
But there is not so much such work now.
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