North Carolina Republicans in Congress are calling for the removal of what they say is a “hidden tax” on the state’s tobacco farmers tucked into President Donald Trump’s domestic policy bill, a position they’re staking out after being lobbied by the agriculture industry.
The so-called One Big Beautiful Bill Act would repeal “duty drawback,” meaning tobacco farmers could no longer be refunded for certain tariffs paid on imported materials so long as they’re later exported, destroyed, or used in products that are later exported.
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It’s a provision the agriculture industry fears would saddle the Tar Heel State’s multibillion-dollar tobacco industry, which relies heavily on exports, with more tariffs.
“One of the provisions tucked away in the House tax bill is a tax hike that would decimate North Carolina’s tobacco farmers,” Sen. Thom Tillis (R-NC) posted to social media. “I stand with our hardworking growers and I’m pushing to get this hidden tax removed from the One Big Beautiful Bill.”
Sen. Ted Budd (R-NC) shared the post. Rep. Greg Murphy (R-NC) also expressed support for removing the language from the megabill, which advances Trump’s broader agenda on energy, the border, and taxes.
“Agree completely,” Murphy posted. “Let’s get this out in the Senate.”
The legislation was passed by House Republicans last month and is being considered by the GOP-led Senate.
The lawmakers’ outspoken positions on the niche policy in a bill more than 1,000 pages long comes on the heels of a pressure campaign from Our Ag Future, part of the North Carolina Chamber of Commerce. The group has been lobbying Budd and Tillis for the changes with a six-figure TV and digital ad campaign first reported by the Washington Examiner and showed no signs of letting up until changes were official in new bill text.
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For added pressure, Our Ag Future has shared testimonies from North Carolina farmers on how repealing duty drawback would hurt their bottom lines.
“We are extremely grateful for Senator Tillis and Senator Budd for standing with North Carolina farmers,” said Ray Starling, general counsel at the North Carolina Chamber of Commerce. “We will look forward to continuing this campaign to urge the rest of Congress to reject the repeal of duty drawback.”