US retailers have urged the Office of the US Trade Representative (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.
The USTR is this week holding 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%.
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“By now the administration should know something it questioned several months ago: Tariffs will not get China to change its unfair trade practices,” Jonathan Gold, National Retail Federation (NRF) vice president for supply chain and customs policy, said during a testimony prepared for a USTR hearing yesterday afternoon (23 August). “Instead, these tariffs threaten to increase costs for American families and destroy the livelihoods of US workers.”
Gold cited a new analysis prepared for NRF by the Trade Partnership that found tariffs on furniture and travel goods from China alone would cost American consumers nearly $6bn a year.
“The threat that these tariffs could be imposed, and even expanded to include all consumer goods imported from China, has already started a scramble among importers to find alternative sources of supply, including in the United States,” Gold said.
“While you may think this is a positive development, the administration needs to know that the scramble is already bidding up prices for consumer products from all possible alternative manufacturers. Therefore, even if the administration decides not to impose the tariffs, higher prices are already on the horizon for American families.”
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By GlobalDataGold added the tariffs are particularly burdensome for small businesses, citing a recent NRF survey that found nearly half (46%) of small retailers anticipate a negative impact on their businesses due to proposed or implemented tariffs.
“The collateral damage to wide swaths of the US economy will be significant,” he said. “This will only get worse as the additional tariffs take effect and retaliation escalates.”
Meanwhile, during its testimony yesterday, the American Apparel & Footwear Association (AAFA) reiterated its call for a swift resolution to the country’s dispute with China and warned any additional tariffs would harm US workers, companies, consumers and communities.
It also outlined its strong opposition to any effort to add wearing apparel, home textiles or footwear in Chapters 61-64.
Meanwhile, China’s compliance with its World Trade Organization (WTO) accession commitments will be the focus of a hearing and comment period designed to assist the Office of the USTR in preparing its annual report to Congress, according to international law firm Sandler, Travis & Rosenberg.
The hearing will be held in Washington DC on 3 October and requests to appear at the hearing are due by 19 September.
