Down with tariffs on China to help reduce inflation, two dozen business groups tell Biden – Community News
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Down with tariffs on China to help reduce inflation, two dozen business groups tell Biden

In a letter to Biden officials sent Friday, the business groups warned that tariffs on China and retaliatory tariffs hurt American businesses and families by increasing costs.

“These costs, compounded by other inflationary pressures, place a significant burden on US businesses, farmers and families trying to recover from the effects of the pandemic,” the business groups wrote in the letter, signed by the US-China Business Council. . , the US Chamber of Commerce, the Business Roundtable, and other trade groups.

“We agree with Secretary Yellen’s recent comments that tariffs tend to raise domestic prices and raise costs for consumers and businesses due to higher cost inputs, and that lowering US and Chinese tariffs would reduce inflation. can help reduce,” the letter said.

The business groups urged Biden officials to cut “harmful” Section 301 tariffs, noting that US importers have paid more than $110 billion in these tariffs since they began under former President Donald Trump, including $40. billion during the Biden administration.

The letter also calls for “immediate action to significantly broaden the tariff exclusion process”. The business groups said they appreciate the US trade representative re-initiating a Section 301 tariff exclusion procedure, but warned that the “scope and retroactive effect are far too limited” given the negative impact of tariffs and “their inflationary pressures”.

In a speech in October, US trade envoy Katherine Tai said the Biden administration will take a tough approach to China and hold Beijing accountable for delivering on the promises it made in the Phase 1 trade deal.

“For too long, China’s failure to adhere to global trading standards has undermined the prosperity of Americans and others around the world.” said Tai. “It is becoming increasingly clear that China’s plans do not include meaningful reforms to allay concerns shared by the United States and many other countries.”

The business groups said they support the Biden administration’s original Chinese trade policy priorities, including enforcing China’s existing commitments to the Phase One trade deal and working to address long-standing structural problems.

The letter also highlights human rights and national security concerns related to China.

“Our organizations agree that forced labor and other human rights violations should have no place in supply chains, and our members are working to prevent forced labor in supply chains in China and around the world,” the letter read. “We also support targeted export controls on sensitive technologies that ensure US national security, as well as maintain US technology leadership, carefully consider foreign availability, and are implemented in coordination with other supplier governments.”