Apr 12, 2018

Tariffs’ Negative Impacts on American Workers, Businesses Examined by Congress

Post by Freedom Partners

Today, the House Ways and Means Committee held a hearing on the impact of tariffs on the economy and both Freedom Partners Chamber of Commerce and the Americans for Prosperity continue to urge policymakers to reject tariffs and their resulting economic repercussions. The groups have reminded policymakers of the detrimental effect that tariffs have on American competitiveness as well as to undermine the gains made from the “Tax Cuts and Jobs Act” passed last year.

Freedom Partners Executive Vice President Nathan Nascimento and AFP Senior Policy Fellow Alison Acosta Winters reiterated the negative impact of tariffs:

“…punitive trade policies like tariffs have huge costs on consumers and industries, like manufacturers, which use imports in their business. These costs outweigh the benefits for the small, select group of so-called winners…Trading partners often respond with tit-for-tat retaliatory measures that can quickly escalate into a full-blown trade war that could sharply constrict trade. In today’s global economy, the damage would be significant….”

“Tariffs are lose-lose – they harm our country and our trading partners. There are other solutions…”

The New York Times interviewed CP Industries chief executive Michael Larsen, whose company is based in McKeesport, Pennsylvania, about the tariffs. Larsen highlighted how tariffs raised prices on a recent steel-pipe shipment, the costs of which ballooned to the equivalent of about two weeks’ payroll. Larsen mused, “How long can we last?… We could go down relatively fast.”

Since the announcement of implementing tariffs, Freedom Partners reminds Americans and policymakers of these trade policies’ negative impact on the economy. Freedom Partners released a statement condemning tariffs on steel and aluminum, in addition to a report revealing that the same arguments made in support of the Bush administration’s failed tariffs are many of the same arguments being made today. Also, AFP President Tim Phillips called tariffs both self-destructive and counterproductive. The grassroots organization continues to educate their activists on the negative consequences of protectionist trade policy and its impact on consumers.