Feb 25, 2019

Report Warns of ‘Tariff Turmoil’ Absent Sweeping U.S.-China Trade Deal

Post by Freedom Partners

Arlington, VA – The Trump administration rightly delayed an increase in tariffs from 10 to 25 percent on March 2nd because it would devastate U.S. producers, workers, and consumers, according to a new analysis from Freedom Partners Chamber of Commerce and Americans for Prosperity (AFP), entitled “Tariff Turmoil: The Effects of Section 301 Tariff Increases Told Through Businesses & Consumers.” In conjunction with the special report, at the online grassroots portal www.TradeBuildsAmerica.com, a new feature lists sortable, state-by-state warnings about the negative impact of higher tariffs.

Freedom Partners Executive Vice President Nathan Nascimento issued the following statement:

“The Trump administration is right to delay the March 1 deadline and give U.S.-China trade talks more time. As our report illustrates, it is critical for Washington and Beijing to swiftly reach an agreement for both sides to eliminate tariffs and other non-tariff protectionist measures. Hundreds of job creators speak with one voice in our report: this 25 percent tariff endangers American prosperity. From rural farmers and small business manufacturers to national retailers and large corporations, trade builds America. Increasing the tariffs would mean higher costs for consumers, job losses for workers, and catastrophic harm for small businesses.”

AFP Senior Policy Fellow Alison Acosta Winters issued the following statement:

“The administration is right to delay increasing tariffs to 25 percent as negotiations continue and we continue to urge them to remove this tariff threat hanging over the country. Across thriving communities and bustling industries, trade is part of our economic powerhouse helping drive growth and improve lives. This new report gives a voice to hundreds of U.S. job creators warning of the devastating impact increasing tariffs to 25 percent on a vast array of Chinese imports would have on their businesses. The Trump administration should avoid the damage these tariffs would wreak on Americans by forging an agreement with Beijing that eliminates trade barriers.”

Background

Trade principles

  • The United States should eliminate all trade barriers, regardless of other countries’ trade policies, in order to provide Americans lower prices, more jobs and bigger paychecks, and to drive innovation through competition.
  • Individuals and businesses in a competitive market, not government bureaucrats or politicians, should guide trade decisions.
  • Punitive measures such as tariffs and quotas are an unjust government intrusion into the lives of hardworking Americans. They violate the property and associational rights of individuals and should all be eliminated.
  • Subsidies and other forms of government supports for powerful and politically connected businesses and industries do not create value. They punish consumers, burden taxpayers, insulate businesses from market competition, and should be eliminated.
  • Trade disputes should be resolved through existing international trade agreements and organizations.
  • While national security interests may be a consideration in trade policy, they should be used to restrict trade only when there is truly a narrow national security interest at stake, not as a workaround to impose tariffs.