Customs Brokers, Trade Groups, Business Groups Warn Against Sweeping Tariffs in 301 Case

Business interests are continuing to sound the alarm that widespread tariffs against China as punishment for intellectual property theft and forced technology transfer are a bad idea (see 1803160009). "The Administration should not respond to unfair Chinese practices and policies by imposing tariffs or other measure that will harm U.S. companies, workers, farmers, ranchers, consumers, and investors," said a letter sent March 18 by 45 business groups to President Donald Trump. The signatories -- which included five regional customs brokers' trade groups and the National Customs Brokers and Forwarders Association of America -- were led by tech industry trade groups.

The groups said that while they have serious concerns about market access barriers in China, state involvement in technology negotiations and theft of intellectual property, imposing tariffs on electronics, apparel and other consumer products "would increase prices for U.S. consumers and businesses, while doing little to address the fundamental challenges posed by unfair and discriminatory Chinese trade practices." The letter also noted that U.S. companies sell components to China that are incorporated into final products, and those companies would be hurt by tariffs. The groups urged Trump, U.S. Trade Representative Robert Lighthizer, Commerce Secretary Wilbur Ross, Treasury Secretary Steve Mnuchin and the new National Economic Council Director Larry Kudlow to consider working with allies on China's trade and investment policies and to allow industry experts to comment on the economic impact of tariffs before they are levied.