Aug 21, 2024, 5:00 AM
Aug 21, 2024, 5:00 AM

U.S. Officials Reject Plan to Import More Baby Formula

Highlights
  • Facing a national shortage, U.S. officials rejected a plan to import more baby formula.
  • Trade officials opposed lifting the tariff on imports, citing concerns from domestic dairy producers.
  • The decision highlights the complex trade dynamics affecting baby formula supply in the U.S.
Story

In 2022, the United States faced a significant baby formula shortage following the shutdown of a major production facility. Despite the crisis, federal trade officials, particularly from the Office of the United States Trade Representative (USTR), resisted calls to lift tariffs on imported formula. Internal communications revealed concerns that removing these tariffs could provoke backlash from domestic dairy producers, with USTR officials attributing the retail situation to supply chain issues and consumer panic rather than inadequate domestic production. The Biden administration's response to the shortage included plans to facilitate imports, including flying in formula from Europe. However, a proposed trade proclamation to temporarily suspend tariffs was never issued, leaving the tariffs in place for an additional ten weeks until Congress intervened on July 21. The USTR defended its actions, emphasizing a commitment to utilizing all available tools to address the crisis and ensure access to infant formula for American families. The shortage had dire consequences for many infants, with reports of adverse reactions to switched formula brands and parents resorting to unsafe feeding practices. The Infant Nutrition Council of America (INCA) expressed support for the temporary lifting of tariffs during the crisis and indicated a desire to collaborate with federal officials to prevent future shortages. Meanwhile, dairy industry representatives opposed the idea of a "trigger rule" that would automatically lift tariffs during emergencies, asserting that Congress is capable of swift action when necessary.

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