(Yicai Global) May 16 -- Leading US business groups have voiced their strong opposition to the government’s plan to bring in USD50 billion worth of tariffs on Chinese products in written responses, warning that the move would undermine the interests of US manufacturers, exporters and consumers.
The US Trade Representative’s Office (USTRO) has received over 2,700 written opinions on the proposed tariffs as of May 14, most of which expressed opposition against the US government’s plan, according to official information of the US Federal Government’s website.
More than 120 representatives from China-US business sector, law firms, think tanks, industry associations and other related areas are attending public hearings to state their opinions at the office, running from May 14 to 17.
The USTRO proposed 25 percent duties on USD50 billion of Chinese imports, mainly involving Information and communications technology, aerospace, robotics, pharmaceuticals, and machinery, among other industries following the conclusion of the Section 301 investigation on April 3, leading to growing trade frictions between the world’ two largest economies.
In their written opinions, leading US business groups warned that the planned tariffs will do more harm than good to the domestic economy and enterprises. The US Chamber of Commerce said in the written opinions that such an action represents “implicit taxation” on US enterprises and consumers and will jeopardize global supply chain as well as the competitiveness of US manufacturers and exports.
Unilateral tariff strategies has never worked out in US history, and have brought adverse consequences such as job losses on most occasions, the chamber added.
The US-China Business Council also weighed in on the plan, stating that unilateral tariffs will not only fail to resolve trade disputes but also cause substantial economic damages to US enterprises and consumers. The National Foreign Trade Council also maintained that slapping on tariffs was not in the interests of US manufacturers, service providers and consumers.
Industry body the National Retail Federation emphasized that the proposed list of tariffs against China will have a direct impact on the purchases of televisions, display and other home appliances in the US. The pressures of rising costs incurred by the tariffs will be passed on to retailers, and finally to consumers.
Editor: William Clegg