Policies & Issues

JA Joins Retailers Lobbying Against Import Tax

Policies & IssuesFeb 23, 2017

JA Joins Retailers Lobbying Against Import Tax

The proposed “Border Adjustment Tax” imposes a 20 percent tax on goods imported from overseas, be they raw or finished.

Washington, D.C.--Jewelers of America is joining the growing list of retailers and retail groups speaking out against the so-called Border Adjustment Tax, which would slap a 20 percent tax on goods imported from overseas.

Though not formally introduced in Congress yet, the Border Adjustment Tax, or BAT, is part of a comprehensive tax reform proposal drawn up by House Republicans.

Called the Tax Reform Task Force Blueprint, the plan would shift the emphasis on taxation in the United States from income to consumption, lowering taxes on individuals and corporations while increasing it on consumer goods.

BAT calls for a 20 percent tax on finished and raw goods and materials brought into the United States from abroad, from French wine to German cars, from Italian gold to Burmese rubies.

Proponents of BAT, including House Speaker Paul Ryan (R-Wis.), say it will raise $1.2 trillion dollars over 10 years and that its cost to retailers will be offset by a stronger dollar and corporate and individual tax cuts.

But individual retailers and retail groups, including Jewelers of America, are coming out against BAT because, they argue, it will increase the cost of products from overseas for retailers and, ultimately, consumers.

Tim Haake, managing director of Washington, D.C.-based Haake Fetzer, which works for the jewelry industry on behalf of Jewelers of America in Washington, said one tenet of House Republicans’ Blueprint is that it be revenue neutral, meaning that it must raise the same amount of revenue that is raised under the current tax system.


Tim Haake
 In order to do this while lowering corporate and individual income tax, Republicans need to have one very large revenue raising provision in the Blueprint, and that’s what the BAT is.

“That filled the hole that existed in the Tax Reform Blueprint plan. But the tax is going to fall on people who spend money for things,” Haake said.

BAT would be particularly detrimental to the jewelry industry, JA President and CEO David J. Bonaparte said, as it’s an industry that manufacturers the vast majority of goods overseas and is dependent upon consumers having extra disposable income.

Already working within tight margins, jewelers would have to pass along at least some of the 20 percent tax to their customers, customers who will have less money to spend on discretionary goods as they grapple with higher prices on essentials like clothing, food, cars and gas.

“My feeling is that jewelry would be adversely
affected more than other categories because consumers are going to go down the list of needs and jewelry’s going to be lower (on that list) now,” Bonaparte said.

Haake echoed that sentiment: “Jewelry is a totally discretionary expenditure.”

In addition to its lobbying efforts with Haake Fetzer, JA has joined Americans for Affordable Products, a group of businesses and trade associations that are lining up against BAT.

Others that have joined the group include the Fashion Jewelry and Accessories Trade Association, online retailer Gilt, Jewelry Television, LVMH, the National Retail Federation and Neiman Marcus.

JA also has updated its Legislative Action Center, where retailers and suppliers can go to contact their representatives in Congress to voice their opinion about BAT or other issues.

“We’ve already started to dig our heels in and actively fight this,” Bonaparte said.

Congressional Republicans have been working on serious tax reform proposals for about five years, but those proposals lay dormant until the election of a Republican president in Donald Trump and the party’s victories in both houses of Congress this past fall.


Chris Fetzer
BAT is just one provision of the 44-page Tax Reform Task Force Blueprint and, like the entire tax plan, faces a long road ahead; or, as House Speaker Ryan put it: “We’re going to get tax reform done, and there’s going to be a whole bunch of drama.” 

Chris Fetzer, Haake Fetzer’s managing director, said the House Financial Services Committee’s Monetary Policy and Trade Subcommittee is expected to hold a hearing on BAT in the coming weeks.

While the tax has support from some key House Republicans, including Ryan, House Majority Leader Kevin McCarthy (R-Calif.) and House Ways and Means Committee Chairman Kevin Brady (R-Texas), Haake said BAT faces a significant challenge from top Senate Republicans.

Finance Committee Chairman Orrin Hatch (R-Utah) has publicly raised questions about how the bill will impact both businesses and consumers.

And Senate Majority Whip John Cornyn (R-Texas) described BAT as being “on life support” as soon as last Friday, before Congress went on a week-long break.
Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

GIA iD100® Technology
Supplier BulletinJul 03, 2025
Protect Your Customers and Your Business

Sponsored by the Gemological Institute of America

Madison Keys in Brilliant Earth campaign
MajorsJul 03, 2025
Brilliant Earth Names Tennis Star Madison Keys as Its New Ambassador

The 2025 Australian Open champion is the jewelry brand’s first athlete ambassador.

Muse Nordstrom shop-in-shop
MajorsJul 03, 2025
Muse Sets Up Shop in Nordstrom’s New Jewelry Hall

The West Village jewelry boutique’s new shop-in-shop is the cornerstone of Nordstrom’s revamped jewelry hall.

an instructor and a student in a bench jewelry classroom
Brought to you by
Investing in the Next Generation of Bench Jewelers

The Seymour & Evelyn Holtzman Bench Scholarship from Jewelers of America returns for a second year.

Shree Ramkrishna Exports
SourcingJul 03, 2025
SRK Announces Its Natural Diamonds Are Now Carbon-Negative

This past year, the manufacturer said it recorded below-zero emissions per carat of natural diamond.

Weekly QuizJul 02, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Yeprem Golden Strada Statement Necklace
CollectionsJul 03, 2025
Piece of the Week: A Firework of Diamonds From Yeprem

The brand’s “Golden Strada” statement necklace features round, marquise, and pear diamonds that sparkle like Fourth of July fireworks.

Stock image of police cars with their lights on
CrimeJul 03, 2025
JSA Shares Holiday Weekend Security Tips Amid Spike in Burglaries

JSA’s Scott Guginsky provided a list of nine security measures jewelers should observe while locking up for the long weekend.

Jewelers of America logo with meetup, State of the Majors, giveaway and massages
Brought to you by
Jewelers of America is Headed to Las Vegas for JCK 2025

The countdown is on for the JCK Las Vegas Show and JA is pulling out all the stops.

Exterior and entryway of Boucheron’s Los Angeles Flagship
MajorsJul 02, 2025
Boucheron Looks to LA for First West Coast Flagship

Located on Rodeo Drive, the store’s design was inspired by Hollywood and Los Angeles culture.

Exterior of Marco Bicego Milan Flagship
MajorsJul 02, 2025
Marco Bicego Opens Milan Flagship

The new location continues the brand’s celebration of its 25th anniversary.

Chrono24 Time Is Our Thing campaign image
WatchesJul 02, 2025
Chrono24 Revamps Brand, Launches New Campaign

The online watch marketplace’s “Time Is Our Thing” campaign highlights the importance of time.

Bernadette Mack
SourcingJul 02, 2025
Bernadette Mack Joins Gem Legacy as Executive Director

She will oversee strategic planning, fundraising, industry partnerships, and the launch of the Gem Legacy Campus in Tanzania.

Counterfeit Pandora jewelry in bags and boxes
CrimeJul 02, 2025
Pandora, Amazon Partner to Uncover Counterfeit Jewelry Network

Working with Amazon’s Counterfeit Crimes Unit and law enforcement, Pandora helped to shut down a large-scale counterfeit network in China.

Cast Issa Rae
MajorsJul 01, 2025
Cast Closes Business, Plans for Relaunch

The jewelry company has closed its three California brick-and-mortar stores, as well as its online shop, for now.

Eve Goldberg, Matthew Denatale, Willie Lopez, Benjamin Goldberg
Events & AwardsJul 01, 2025
William Goldberg Diamonds, FIT Partner for Apprenticeship Program

The company is providing the opportunity for an FIT student to work alongside master diamond cutter Willie Lopez in its workshop.

Elie Hannoush
IndependentsJul 01, 2025
Elie Hannoush, Founder of Hannoush Jewelers, Dies at 73

He is remembered for his successful entrepreneurship, generosity, and dedication to his family.

Claire’s store
MajorsJul 01, 2025
Claire’s Is Looking for a Buyer, Report Says

The jewelry store chain has reportedly been struggling with costs related to tariffs as well as tough retail competition.

Mindi Mond Spike Earrings
TrendsJul 01, 2025
Amanda’s Style File: Red Hot Rubies

Welcome warm summer days with red hot rubies perfectly chosen as July’s birthstone.

The Story of Everything Campaign, Toadstool Mushroom and Cosmic Egg
CollectionsJun 30, 2025
State Property’s New Jewelry Tells ‘The Story of Everything’

Co-founders Afzal Imram and Lin Ruiyin brought their son’s story of a cosmic egg, toadstool, and railroad to life in their new collection.

Smart Age Solutions CEO Emmanuel Raheb
ColumnistsJun 30, 2025
The Smart Lab: Why Q3 Is the Secret Weapon For Holiday Jewelry Sales

The best time to prepare for the holiday season is right now, according to columnist Emmanuel Raheb.

Morgan Keefe
Events & AwardsJun 30, 2025
AGA Names Recipient of 2025 Gemological Education Scholarship

This year’s winner is Morgan Keefe, who is currently studying at GIA to be a gemologist.

The Jewelry Book
IndependentsJun 30, 2025
Melanie Grant’s New Book Explores 200 Years of Jewelry

“The Jewelry Book” comes out this September.

Gemist
TechnologyJun 27, 2025
Gemist Raises $6M in Funding to Scale Jewelry Tech Platform

The company is focused on modernizing the custom jewelry buying experience with e-commerce tools like product visualization and 3D styling.

Jeff Preolo, David Stout, Levi Higgs, David Benavides
IndependentsJun 27, 2025
David Webb Announces New Hires, Promotions

Following its recent acquisition, the storied brand has updated its leadership team and regional managers.

Blake Graham and Jessica Kohoutek
Events & AwardsJun 27, 2025
AGS, GIA Announce Beatrice Shipley Scholarship Winner

AGS also named the recipient of its “Women in Leadership” scholarship.

Buddha Mama Monstera Ring
CollectionsJun 27, 2025
Piece of the Week: Buddha Mama’s ‘Monstera’ Wrap Ring

The 20-karat yellow gold and diamond wrap ring is modeled after the Monstera plants in the garden of the brand’s Miami villa.

Cashier handing Rocksbox bag to customer
MajorsJun 26, 2025
Why Rocksbox Is Opening Stores As Signet Jewelers Downsizes

Rocksbox President Allison Vigil shared the retailer’s expansion plans, and her thoughts on opening stores in malls.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy