Month: May 2022

WASHINGTON, D.C. (May 27, 2022) — Americans for Free Trade (AFT) spokesperson Jonathan Gold released the below statement following yesterday’s speech by Secretary of State Antony Blinken regarding the Biden administration’s strategy for U.S. diplomatic relations with China.

“As Secretary Blinken noted in his speech, trade should support and create new opportunities for U.S. workers. However, that goal remains out of reach for many, as tariffs imposed by the previous administration remain in place on more than $350 billion worth of goods imported from China. These tariffs are taxes on American families, businesses, farmers, and manufacturers, and have been wholly ineffective in pushing China to end its abusive trade practices. For the Biden administration’s approach to relations with China to be successful, it must prioritize bringing this long-running trade war to an end.”

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WASHINGTON, D.C., (May 25, 2022) — Earlier this week, Americans for Free Trade held a “Tariff Talk” with speakers from four top think tanks to get their perspective on the trade war’s continued impact on the American economy as the Office of the United States Trade Representative conducts its four-year review of the tariffs.

You can find a video of the full AFT Tariff Talk, which was hosted by the Consumer Technology Association (CTA) at the CTA Innovation House, on our Twitter page here.

Featured speakers at the event, which was moderated by Politico’s Doug Palmer, included:

• Ed Gresser, Vice President and Director for Trade and Global Markets at the Progressive Policy Institute
• Christine McDaniel, Senior Research Fellow at the Mercatus Center at George Mason University
• Zach Moller, Director of the Economic Program for Third Way
• Tori Smith, Director of International Economic Policy for the American Action Forum

Throughout the event, speakers reiterated a truth that businesses throughout the nation are all too familiar with: tariffs are taxes on American families, workers, and businesses:

“The wide consensus of economists is that consumers eventually pay the tariff.” – Ed Gresser, Progressive Policy Institute

“We know that tariffs are taxes on you and me.” – Tori Smith, American Action Forum

But, as Third Way’s Zach Moller pointed out, “We cannot talk about tariffs today without talking about their impact on inflation.”

Inflation is top-of-mind for American voters and policymakers alike, with rising prices sure to have a dramatic impact on this year’s midterm elections. The urgency of the issue and the way tariffs contribute to increased costs were a primary focus for many of the event’s speakers:

“We need to be fighting inflation literally every way we can. Lowering tariffs is a way Democrats and the Biden administration could act on inflation, and I’m frankly surprised we haven’t seen more action on it.” – Zach Moller, Third Way

“[Lifting the tariffs] is not going to be a panacea [for inflation], but it’s certainly going to help. And you’re going to get a lot better bang for the buck when you do all the other good things you should be doing.” – Christine McDaniel, Mercatus Center

Speakers each had different ideas for what exactly the future could hold for American trade policy, but the common conclusion was that regardless of what shape that policy takes, it is time for the tariffs to go:

“I think it’s obvious to say that it’s time for these tariffs to go.” – Tori Smith, American Action Forum

“There’s very little awareness of tariffs as part of the tax system and what we’re taxing and why is it that we’ve allowed such a weirdly regressive tariff system … it’s something that’s very ripe for reform.” – Ed Gresser, Progressive Policy Institute

As the Mercatus Center’s Christine McDaniel pointed out, “In all this, we have lost sight of the American business … The vast majority don’t want these tariffs.” 

If you are interested in speaking with someone about the trade war and its negative impact on Americans, please contact press@americansforfreetrade.com.

WASHINGTON, D.C., (May 18, 2022) — As we approach the 2022 midterms, the Biden administration faces a range of economic obstacles that will be at the top of voters’ minds, and nothing has Americans more worried than the ongoing inflation contributing to increased prices for the everyday goods they need most. While President Biden seeks to address this inflation, calls are increasing for his administration to use every tool at its disposal, including finally ending former President Trump’s trade war with China. 

Tariffs are taxes on American families, businesses, farmers, and manufacturers. They make the items they need more expensive, and have contributed to the economic uncertainty facing the nation. And now, economists across the political spectrum are speaking out. 

Speaking with MSNBC’s Andrea Mitchell, Jason Furman, who served as Chairman of the White House Council of Economic Advisors under former President Obama, called the tariffs on imports from China “the biggest stone that’s unturned” in the fight against inflation, adding:

“I’d love to see them lift most of the tariffs that President Trump imposed. That would bring down inflation directly, would increase competition and the economy, and indirectly bring down prices even more … This would be the biggest step he could take, that he’s not taken so far.”

These comments follow the March release of a study from the Peterson Institute for International Economics (PIIE), which found that removing all of the tariffs levied by former President Trump would lead to a 1.3 percentage point decline in the consumer price index inflation. Additionally, PIIE Economist Chad Bown wrote in March:

“The trade war was also costly to the US economy through the impact of the US tariffs. Numerous economic studies have documented that the effect of the tariffs was to raise prices and hurt American consumers and companies … harming American competitiveness by reducing employment and sales.”

Americans are eager to see what comes of the Biden administration’s four-year review of some of former President Trump’s tariffs, as administration officials have pointed totariff relief as a possible way to combat inflation. 

Now, many are hoping that it finally provides economic relief that is long overdue, because as the National Taxpayers Union highlighted earlier this year:

“[T]here’s no denying that Trump’s Section 301 tariffs have cost Americans billions of dollars while failing to achieve their primary policy aims. The Biden administration should allow the tariffs to end as scheduled and pursue alternatives that are more likely to benefit the United States.”

If you are interested in speaking with someone about the trade war and its negative impact on Americans, please contact press@americansforfreetrade.com.

WASHINGTON, D.C., (May 5, 2022) — Americans for Free Trade (AFT) spokesperson Jonathan Gold released the below statement following yesterday’s vote on the Motion to Instruct proposed by Senator Pat Toomey (R-PA) to include Section 73001 as included in the U.S. Innovation and Competition Act in a final conferenced Bipartisan Innovation Act.

“By voting in support of this Motion to Instruct, the Senate has once again recognized the importance of reinvigorating the exclusion process for products subject to Section 301 tariffs and demonstrated its commitment to finding a solution for the American businesses, manufacturers, farmers, and families who continue to struggle with the additional economic burden these tariffs create. They make the U.S. less competitive globally and cause disproportionate economic harm to an American economy grappling with ongoing inflation concerns. While the best solution would be to lift the tariffs and take a more strategic approach to address China’s unfair trade practices, we believe reinstituting this exclusion process is a critical interim step to providing relief to U.S. businesses and making them more competitive with their Chinese counterparts.”

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WASHINGTON, D.C., (May 2, 2022) — Today, Americans for Free Trade (AFT), a broad coalition of American businesses, trade organizations, and workers united against tariffs, sent a letter to Senate leadership voicing support for the Motion to Instruct proposed by Senator Pat Toomey (R-PA) to include Section 73001 as included in the U.S. Innovation and Competition Act in a final conferenced Bipartisan Innovation Act. This provision would reinvigorate the exclusion process for products subject to additional tariffs under Section 301 of the Trade Act of 1974. 

“We continue to call for an end to the China Section 301 tariffs – including China’s retaliatory tariffs — that have had a disproportionate economic impact on American companies, consumers, and workers and that have failed to change China’s unfair trade practices,” Americans for Free Trade wrote. “But until the tariffs are lifted, we believe reinstituting the Section 301 exclusion process for all covered products is critical to providing interim relief for U.S. businesses.”

177 trade associations signed on to the letter. The full text of the letter may be found here and below.

May 2, 2022

The Honorable Charles Schumer 
Majority Leader
United States Senate 
Washington, DC 20510

The Honorable Mitch McConnell 
Republican Leader
United States Senate 
Washington, DC 20510

RE: Support Senator Toomey Motion to Instruct to Include on Section 301 Product Exclusions Process (Section 73001)

Dear Majority Leader Schumer and Republican Leader McConnell,

On behalf of the undersigned members of Americans for Free Trade, we are writing to express strong support for the Motion to Instruct proposed by Senator Pat Toomey (R-PA) to include Section 73001 as included in the U.S. Innovation and Competition Act (USICA) (S. 1260). This was included as part of the Trade Act of 2021 which received a 91-4 vote as an amendment to USICA. The provision will reinvigorate the exclusion process administered by the Office of the U.S. Trade Representative (USTR) for products subject to additional tariffs under Section 301 of the Trade Act of 1974.

By way of background, Americans for Free Trade represents every part of the U.S. economy including manufacturers, farmers and agribusinesses, retailers, technology companies, service suppliers, natural gas and oil companies, importers, exporters, and other supply chain stakeholders. Collectively, we employ tens of millions of Americans through our vast supply chains.

As U.S. companies continue to recover from the global pandemic, they are now facing ongoing supply chain disruptions and rising inflation. We continue to call upon the administration to resolve the ongoing trade war with China to help ease these challenges. To date, U.S. Customs and Border Protection has collected over $134 billion dollars in tariffs from U.S. companies who import products from China. These taxes increase the cost of doing business in the United States and risk exacerbating increasing inflation. They are a financial burden on U.S businesses – negatively impacting their ability to invest in their companies, hire more American workers, and remain competitive globally.

We continue to call for an end to the China Section 301 tariffs – including China’s retaliatory tariffs – that have had a disproportionate economic impact on American companies, consumers, and workers and that have failed to change China’s unfair trade practices. But until the tariffs are lifted, we believe reinstituting the Section 301 exclusion process for all covered products is critical to providing interim relief for U.S. businesses. According to a recent Moody’s Investor Service Report, the tariffs “hit American businesses and consumers hardest,” with China absorbing only 7.6 percent of the tariffs “while the rest of the tab was picked up by Americans.”

Section 73001 of USICA would alleviate the economic burden on American businesses and consumers by immediately reinstating product exclusions that expired throughout 2020 – in the middle of the pandemic and economic recession – through December 31, 2022. It would also require USTR to implement a new product exclusion process and outlines specific criteria for USTR to consider in determining whether to grant an exclusion. Under these criteria, the exclusion process will function in a fair, consistent, and transparent manner and ensure that American businesses do not suffer disproportionate economic harm as a result of the tariffs.

USTR has thus far failed to act independently – as Section 301 authorizes it to do. USTR recently provided an exclusion process, but this process was limited to a small amount of expired exclusions and did not provide full retroactivity for the exclusions that were reinstated. While these reinstated exclusions are an important first step, a more robust process is needed to provide meaningful relief. This view is shared by at least 141 bipartisan House members and 41 bipartisan Senators who recently wrote to Ambassador Tai urging USTR to open a broader exclusions process. Yet, USTR refuses to act. We therefore urge the Senate to support the Motion to Instruct to include Section 73001 in a final conferenced Bipartisan Innovation Act.

We look forward to working with Congress and the Administration to address the ongoing negative impact of the tariffs on American businesses, American workers, and American consumers by fully lifting the Section 301 tariffs. Reinstituting a fair, transparent, and retroactive exclusion process will provide targeted tariff relief for, U.S. businesses, helping them overcome current economic and supply chain disruptions and enabling them to invest in their businesses and workers here at home.

Thank you for your consideration. 

Sincerely,

Accessories Council
ACT | The App Association
Agriculture Transportation Coalition (AgTC)
ALMA, International (Association of Loudspeaker Manufacturing and Acoustics)
American Apparel & Footwear Association (AAFA)
American Association of Exporters and Importers (AAEI)
American Association of Port Authorities
American Bakers Association
American Bridal & Prom Industry Association (ABPIA)
American Chemistry Council
American Clean Power Association
American Coatings Association, Inc. (ACA)
American Down and Feather Council
American Fly Fishing Trade Association
American Home Furnishings Alliance
American Lighting Association
American Petroleum Institute
American Pyrotechnics Association
American Rental Association
American Seed Trade Association
American Specialty Toy Retailing Association
American Trucking Association
Arizona Technology Council
Arkansas Grocers and Retail Merchants Association
Association For Creative Industries
Association for PRINT Technologies
Association of American Publishers
Association of Equipment Manufacturers (AEM)
Association of Home Appliance Manufacturers
Auto Care Association
Beer Institute
BSA | The Software Alliance
Business Alliance for Customs Modernization
California Bottled Water Association
California Retailers Association
Can Manufacturers Institute
Central States Bottled Water Association
Chemical Industry Council of Delaware (CICD)
Coalition of New England Companies for Trade (CONECT)
Coalition of Services Industries (CSI)
Colorado Retail Council
Columbia River Customs Brokers and Forwarders Assn.
Computer & Communications Industry Association (CCIA)
Computing Technology Industry Association (CompTIA)
Consumer Brands Association
Consumer Technology Association
Council of Fashion Designers of America (CFDA)
CropLife America
Customs Brokers & Freight Forwarders Assn. of Washington State
Customs Brokers & Freight Forwarders of Northern California
Distilled Spirits Council of the United States
Electronic Transactions Association
Energy Workforce & Technology Council
Experiential Designers and Producers Association
Fashion Accessories Shippers Association (FASA)
Fashion Jewelry & Accessories Trade Association
Flexible Packaging Association
Florida Ports Council
Florida Retail Federation
Footwear Distributors and Retailers of America (FDRA)
Fragrance Creators Association
Game Manufacturers Association
Gemini Shippers Association
Georgia Retailers
Global Chamber®
Global Cold Chain Alliance
Greeting Card Association
Halloween Industry Association
Home Fashion Products Association
Home Furnishings Association
Household and Commercial Products Association
Idaho Retailers Association
Illinois Retail Merchants Association
Independent Office Products & Furniture Dealers Association (IOPFDA)
Indiana Retail Council
Information Technology Industry Council (ITI)
International Association of Amusement Parks and Attractions (IAAPA)
International Bottled Water Association (IBWA)
International Foodservice Distributors Association
International Housewares Association
International Warehouse and Logistics Association
International Wood Products Association
ISSA – The Worldwide Cleaning Industry Association
Jeweler’s Vigilance Committee
Juice Products Association (JPA)
Juvenile Products Manufacturers Association
Leather and Hide Council of America
Licensing Industry Merchandisers’ Association
Los Angeles Customs Brokers and Freight Forwarders Assn.
Louisiana Retailers Association
Maine Grocers & Food Producers Association
Maine Lobster Dealers’ Association
Maritime Exchange for the Delaware River and Bay
Maryland Retailers Association
Michigan Chemistry Council
Michigan Retailers Association
Mid-America Bottled Water Association
Minnesota Retailers Association
Missouri Retailers Association
Motor & Equipment Manufacturers Association
Motorcycle Industry Council
NAPIM (National Association of Printing Ink Manufacturers)
National Association of Chain Drug Stores (NACDS)
National Association of Chemical Distributors (NACD)
National Association of Foreign-Trade Zones (NAFTZ)
National Association of Home Builders
National Association of Music Merchants
National Association of Trailer Manufacturers (NATM)
National Confectioners Association
National Council of Chain Restaurants
National Electrical Manufacturers Association (NEMA)
National Fisheries Institute
National Foreign Trade Council
National Grocers Association
National Lumber and Building Material Dealers Association
National Marine Manufacturers Association
National Restaurant Association
National Retail Federation
National Ski & Snowboard Retailers Association
National Sporting Goods Association
Natural Products Association
New Jersey Retail Merchants Association
North American Association of Food Equipment Manufacturers (NAFEM)
North American Association of Uniform Manufacturers and Distributors (NAUMD)
North Carolina Retail Merchants Association
Northeast Bottled Water Association
Northwest Bottled Water Association
Ohio Council of Retail Merchants
Outdoor Industry Association
Pacific Coast Council of Customs Brokers and Freight Forwarders Assns. Inc.
Pennsylvania Retailers’ Association
PeopleforBikes
Personal Care Products Council
Pet Advocacy Network
Pet Food Institute
Plumbing Manufacturers International
Power Tool Institute (PTI)
PRINTING United Alliance
Promotional Products Association
International Recreational Off-Highway Vehicle Association
Retail Association of Maine
Retail Council of New York State
Retail Industry Leaders Association
Retailers Association of Massachusetts
RISE (Responsible Industry for a Sound Environment)
RV Industry Association
San Diego Customs Brokers and Forwarders Assn.
SEMI
Semiconductor Industry Association (SIA)
Snowsports Industries America
Software & Information Industry Association (SIIA)
South Atlantic Bottled Water Association
South Dakota Retailers Association
Southeast Bottled Water Association
Specialty Equipment Market Association
Specialty Vehicle Institute of America
Sports & Fitness Industry Association
TechNet
Telecommunications Industry Association (TIA)
Texas Water Infrastructure Network
The Airforwarders Association
The Fertilizer Institute
The Hardwood Federation
The Toy Association
Travel Goods Association
Truck & Engine Manufacturers Association (EMA)
United States Council for International Business
United States Fashion Industry Association
US Global Value Chain Coalition
US-China Business Council
Vinyl Institute
Virginia Retail Merchants Association
Virginia-DC District Export Council (VA-DC DEC)
Washington Retail Association
Window and Door Manufacturers Association
World Pet Association, Inc. (WPA)