May 2023 Volume 5

WASHINGTON UPDATE

opposing the Section 301 tariffs, including those filed by FIA and forty of its members urging the USTR to keep the tariffs on Chinese forgings in place. In a recent FIA survey of its members, 76 percent of forgers added jobs as a direct result of the 25 percent tariffs. These tariffs also brought in new business and removing the protective measures on imported Chinese forgings would hurt the workforce, as 63 percent of survey respondents indicated they would have to freeze or reduce their workforce if the Biden administration lifts the tariffs. FIA is working directly with the White House to keep the tariffs as part of their supply chain resiliency strategy as 53 percent of FIA members indicated they increased spending on their U.S. suppliers. To address the Forging Industry naysayers, who claim they cannot find a domestic forger and therefore the tariffs should be removed, another survey of our members indicated forgers have a 39 percent open capacity rate to produce more domestic forgings – all real world data FIA has provided to the White House. This multipronged approach -- working with Congress and the Biden administration -- brings bipartisan attention to China and helps the forging industry keep pressuring policymakers to keep the Section 301 25 percent tariffs on imported Chinese forgings. As the Select Committee on China continues its work highlighting the challenges we face with China, as the Congress considers the many China bills, and as the administration continues its “get tough” approach to China, we are witnessing efforts at a global realignment of supply chain policies geared towards uniting against China and other foreign adversaries. FIA is making the case that the 25 percent tariffs are a key component of this strategy and policymakers are paying attention, not just in the U.S., but around the world.

John Guzik is a founding partner of the Franklin Partnership with over 30 years of Capitol Hill and campaign experience. Previously, John served as Chief of Staff for Ways and Means Chairman Dave Camp. He was the top legislative strategist working on tax, trade, health care, transportation and agriculture issues. John also works closely with the Senate Finance Committee on health care, tax, trade, and many other issues important to his clients. Since entering the private sector in 2001, John has developed vital

relationships with the Executive Branch, the Departments of Interior, Treasury, Commerce, and Health and Human Services, the Center for Medicare and Medicaid Services, the Office of the US Trade Representative, as well as the Army Corps of Engineers. In addition, John develops and implements comprehensive legislative and contribution strategies, to further expand his client’s political footprint in Washington. After leaving Capitol Hill, Congressman Tom Davis (R-VA) tapped John to be the Deputy Executive Director of the National Republican Congressional Committee, where he served as the liaison with the House Republican Leadership, coordinating activities to complement the legislative agenda in the U.S. House of Representatives. He has extensive contacts in both the House and Senate leadership and with key

committees. John Guzik Partner The Franklin Partnership Phone: 202-285-9987 www.Thefranklinpartnership.com

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