The National Retail Federation has joined forces with 150 organisations representing a cohort of US industries to warn the Trump administration of the negative impact of tariffs on the country’s businesses, families and workers.
In an open letter to US Trade Representative Robert Lighthizer on the administration’s proposed tariffs on US$200bn of Chinese imports, the group urge the administration to avoid further escalation with China.
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“Continuing the tit-for-tat tariff escalation with China only serves to expand the harm to more US economic interests, including farmers, families, businesses and workers,” the coalition wrote. “Our organisations agree that longstanding issues in China have negatively impacted many US companies, and we support the administration’s efforts to negotiate meaningful, binding and long-term solutions with the Chinese government, (but) applying these high levels of tariffs on Chinese products will continue to miss the mark.”
The groups say the negative impact will fall particularly hard on small-and medium-sized businesses and their workers, who lack the scale, resources, and options to weather or adapt to these tariffs
“[Tariffs] are counterproductive and so far have only produced increased costs for US businesses and consumers”, they say.
The groups also expressed concern over the administration’s suggestion the US might impose tariffs on all Chinese imports.
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By GlobalData“The effects of the administration’s actions will most hurt the very consumers, small-and medium-sized businesses, manufacturers, farmers and workers the administration wants to protect,” the letter said. “Should all trade to and from China be subject to tariffs, the impacts and disruptions to the US economy would reach across the entire country, from sector to sector, and negatively impact every American family.”
The letter said imposing a 25% tariff on a total of $250bn in Chinese imports — including both tariffs that have already gone into effect this summer and those currently under consideration – would result in $62.5bn in tariff costs for US businesses and consumers each year. By contrast, the US government collected only $33bn in total tariffs on all global imports in 2017.
In addition to the coalition letter, NRF submitted its own comments to USTR regarding the impact of tariffs on retailers and consumers.
Late last month, the USTR held public hearings at the US International Trade Commission in Washington regarding the additional tariffs on about $200bn worth of Chinese products. This list includes all textiles, all travel goods, all hats, and select apparel, accessories, and machinery used in domestic manufacturing. While originally identified for a 10% tariff, the administration is considering increasing the rate to 25%.
Testifying, the NRF urged the USTR to reject additional tariffs on US$200bn of Chinese goods, claiming the enforcement would not make China change its unfair trade practices but would instead hurt American consumers.
