Javier Palomarez, USHBC CEO, Urges Congress to Protect Duty Drawback Program, Preserve US Manufacturing Competitiveness

WASHINGTON, DC, UNITED STATES, June 24, 2025 /EINPresswire.com/ -- The United States Hispanic Business Council (USHBC) strongly opposes the proposed repeal of the duty drawback program in the U.S. House of Representatives’ version of H.R.1 - One Big Beautiful Bill Act. This misguided provision would inflict serious harm on small businesses, family farms, and exporters across the country, undermining America’s manufacturing competitiveness and imposing a hidden tax on Main Street. While the U.S. Senate wisely excluded the repeal from its version, the risk remains. The USHBC urges Congress to protect the duty drawback program and ensure that our nation’s exporters continue to have the tools they need to grow, hire, and compete globally.

Javier Palomarez, USHBC President and CEO, issued the following statement:

“The repeal of the duty drawback program is a direct blow to the small businesses and family farms that fuel our economy. From North Carolina to Texas, this program supports growers, manufacturers, truckers, and neighborhood retailers by allowing American exporters to recover duties paid on imported goods used in exported products. By leveling the playing field, production costs are lowered and American competitiveness is boosted. Eliminating it imposes a hidden tax on Main Street, one that will cost jobs, stunt growth, and destabilize entire communities.”

According to the John Locke Foundation, the cigarette industry alone accounts for $49 billion in economic output in North Carolina, generating over 100,000 jobs and $10 billion in labor earnings. Ending the duty drawback program would cost tobacco growers in that state alone up to $100 million annually, an economic hit that will ripple nationwide. Independent studies from the U.S. International Trade Commission and National Bureau of Economic Research show that duty drawback programs reduce input costs, increase exports, and foster small business investment in local communities.

Palomarez continued:

“Singling out one industry sets a dangerous precedent that jeopardizes all sectors that rely on this program. Eliminating the duty drawback opens the door to dismantling other export incentives crucial for American small businesses. We urge the Trump administration and congressional leadership to protect this program and stand with the working families, job creators, and small business entrepreneurs who depend on it. This isn’t just a trade policy, it’s a policy that keeps America’s promise to our workers.”

To learn more, follow @myushbc and @JPalomarez on X.
Visit ushbc.com/join to become a member today.

About the USHBC
Javier Palomarez is the President & CEO of the United States Hispanic Business Council (USHBC). The USHBC is the leading voice for the small business community. A 501(c)6 non-profit organization, the USHBC focuses on the success of the American small businesses and the representation of Hispanics in business, media, and politics by ensuring they have a voice in the national dialogue. The USHBC is a nonpartisan organization.

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