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Americans for Free Trade Disappointed in USTR Final China Tariff Modifications

WASHINGTON, September 13, 2024 – The following statement is on behalf of Americans for Free Trade, a coalition of American businesses, trade organizations and workers united against tariffs, in response to the release of the Section 301 China tariff modifications by the United States Trade Representative (USTR). These new and increased tariffs will impact important medical supplies like face masks, gloves and syringes; lithium-ion batteries for products ranging from toys to electronics to outdoor power equipment; and critical minerals and manufacturing equipment and components for key industries like solar manufacturing.

“Americans for Free Trade is extremely disappointed that the Biden administration has once again prioritized protecting specific industries rather than the broader needs of the U.S. economy, businesses, workers and consumers. Simply put, these tariffs are additional taxes on Americans.

“Maintaining the current tariffs and increasing some key categories will only lead to increased costs for companies and, in turn, higher prices for consumers. Inflation is finally on a downward trend, and tariffs counter this economic progress.

“We also renew our call for a more robust and transparent exclusions process for all products covered by the tariffs. This is an important process for companies that are unable to easily shift their supply chains.

“The tariffs remain a failed trade policy and have not resulted in changes to China’s policies or behavior. As USTR noted in the Federal Register Notice, China’s policies and behavior have worsened since the imposition of the tariffs. It is therefore paramount that USTR and the administration seek alternative solutions to address these legitimate challenges with China.”

In June, Americans for Free Trade spearheaded a coalition of more than 170 organizations and sent a letter to USTR requesting a 30-day extension to the comment period regarding the proposed modifications to the ongoing Section 301 China tariff actions. The group also urged USTR to hold a public hearing to allow stakeholders the opportunity to present their views on the proposed tariff modifications and exclusions.

About Americans for Free Trade

Americans for Free Trade (AFT) is a broad coalition of American businesses, trade organizations and workers united against tariffs.

Americans for Free Trade Calls USTR Decision to Preserve China Tariffs ‘Detrimental’

WASHINGTON, May 14, 2024 – The following statement is on behalf of Americans for Free Trade in response to release of the statutory four-year review of the Section 301 China tariffs by the United States Trade Representative (USTR).

“Americans for Free Trade is extremely disappointed by the Biden administration’s decision to maintain the harmful Section 301 China tariffs on many non-strategic products, including consumer goods, to the detriment of American workers, consumers and businesses. The tariffs have been a failed policy attempt to change China’s behavior. USTR and the administration must find alternative solutions to address the ongoing issues with China, but also provide more opportunities for American companies to shift their supply chains.

“Throughout this process, USTR received hundreds of comments from businesses large and small that have been negatively impacted by the tariffs. It is unfortunate that these comments were ignored. Maintaining the tariffs, and even increasing them in some categories, will lead to increased prices and nullify any progress the United States has made to combat inflation. 

“While USTR has indicated a new exclusions process for machinery used in domestic manufacturing, today’s announcement is silent on the existing exclusions that are set to expire at the end of May. We call upon USTR to immediately renew these exclusions, which have provided limited but important relief for some U.S. businesses — especially for products that have been delayed because of ongoing supply chain disruptions. In addition, we reiterate our call for USTR to provide a robust and transparent exclusion process for all products that remain subject to the Section 301 China tariffs, especially now that the tariffs have been adjusted.”

About Americans for Free Trade

Americans for Free Trade (AFT) is a broad coalition of American businesses, trade organizations and workers united against tariffs.

AFT Statement on USTR Extension of China Section 301 Tariff Exclusions

WASHINGTON, December 26, 2023 – The following statement is on behalf of Americans for Free Trade in response to the extension of the China Section 301 tariff exclusions by the United States Trade Representative.

“Americans for Free Trade appreciates the short-term extension of the China Section 301 tariff exclusions by USTR which continue to be needed to provide economic relief for American businesses. These exclusions are needed to provide economic relief for American businesses, especially during a time of unprecedented disruptions to global supply chains. However, we are frustrated that USTR announced this short-term extension with little notice, making it difficult for businesses to plan. While we appreciate the opportunity to comment on extending the exclusions, USTR must ensure every action it takes under its Section 301 authority is transparent and offer stakeholders the opportunity to comment on the results of the review.

“We strongly urge USTR not to sunset the exclusions as indicated and again call upon the agency to provide more advance notice regarding the existing exclusions as well as provide a robust and transparent exclusion process for all products that continue to be subject to the China Section 301 tariffs.

“We also renew our call for USTR to immediately release the results of the four-year review of the China Section 301 tariffs, which has been ongoing since May 2022. We are disappointed that USTR continues to drag out this review despite receiving hundreds of comments from businesses large and small who have been negatively impacted by the tariffs. It is imperative that USTR announce the results of the review promptly to provide American businesses, workers and consumers with certainty and predictability in their supply chains.

“As we have communicated to USTR, doubling down on this failed tariff policy will slow the progress the United States has made in combating inflation and create more dislocation, inefficiencies, and potentially job loss across the economy.”

About Americans for Free Trade

Americans for Free Trade (AFT) is a broad coalition of American businesses, trade organizations and workers. Visit americansforfreetrade.com for more information.

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AFT Statement on USITC Report Detailing Tariff Impact

WASHINGTON, D.C., (March 15, 2023) — Americans for Free Trade (AFT) spokesperson Jonathan Gold released the following statement in response to the United States International Trade Commission’s (USITC) report finding that Section 301 and Section 232 tariffs contributed to higher prices for U.S. businesses:

“USITC’s new report reaffirms what has been clear since the start of the trade war: U.S. businesses, not China, pay for the cost of tariffs. As the findings note, import prices rose in near lockstep with the tariffs, meaning that the more than $173 billion in taxes these tariffs effectively created fell directly on American businesses, workers, consumers, and families. This is a fact we reiterated for USITC in a letter last year, and we urge the Biden administration to finally bring an end to this trade war and provide a boon to a U.S. economy faced with increasing uncertainty.”

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ICYMI – Americans for Free Trade Tariff Talk: Ongoing Impact of China 301 Tariffs

In case you missed it, Americans for Free Trade recently hosted a “Tariff Talk” roundtable on the ongoing impact of China Section 301 tariffs, with business leaders across various industries. Participants included:

  • Ed Weinstein, Vice President, Tax and Government Affairs, JOANN Inc.
  • Harlan Stone, Chief Executive Officer, HMTX Industries
  • Erik Steffenburg, Senior Manager – Global Compliance, Brunswick Corporation 
  • Ed Gresser, Vice President and Director for Trade and Global Markets, Progressive Policy Institute
  • Brian Kuehl, Executive Director, Farmers for Free Trade

Kicking off the event, speakers explained the impact of the China Section 301 tariffs on their business and community:

“The section 301 tariffs imposed on products that we import from China negatively impact our company, our team members, our customers, and the U.S. economy as a whole.” – Ed Weinstein

“We are the only U.S. outboard engine manufacturer, and our competitors…are the ones benefiting. It makes no sense to us at all that an American company is paying a hefty tariff, while the very companies we are looking to get an advantage over are benefitting.” – Erik Steffenburg

“Farm families all over the United States are being squeezed by tariffs on China.” – Brian Kuehl

“These tariffs are inflationary and unfair to the American worker.” – Harlan Stone

“On the whole, it’s clear that the additional tariffs of 2018-2019 are falling most heavily on manufacturers.” – Ed Gresser

U.S. companies have tried to source products from outside of China, but that isn’t always feasible:

“All the equipment I need is only available in China. I’m importing technology from China and paying a 25% tariff on the material. Had I not paid that tariff, I probably could have started two factories by now.” – Harlan Stone

“Moving a production facility from China is not only extremely expensive, but it would really detract from our capacity to further manufacture products back here in the U.S.” – Eric Steffenburg

“We’d love to source here in the U.S., but we cannot find sources outside of China that can meet our requirements. It would take 18-24 months for other factories to be built.” – Ed Weinstein

Concern is growing over how the Biden Administration will be handling its tariff exclusions process:

“We continue to be confused about why some of our exclusion requests have been granted but others denied. We really hope that the administration is much more clear and transparent in how they decide what exclusions are granted.” – Eric Steffenburg

“If the exclusions are not extended, the cost of making articles of clothing will become more expensive, and thereby encourage consumers to purchase clothing that is foreign made, and not subject to tariffs.” – Ed Weinstein

If you are interested in speaking with someone about the Section 301 tariffs on China and their negative impact on Americans, please contact press@americansforfreetrade.com.

AFT Statement on Continuation of Section 301 Tariff Exclusions

WASHINGTON, D.C., (December 16, 2022) — Americans for Free Trade (AFT) spokesperson Jonathan Gold released the following statement following the Office of the United States Trade Representative’s (USTR) announcement of a nine‑month extension for 352 Section 301 tariff exclusions that had been scheduled to expire at the end of the year:

“Today’s announcement is welcome news for the countless U.S. businesses, manufacturers, and farmers who had been unsure of whether these much-needed tariff exclusions would continue. On October 4 in a letter for Ambassador Tai, AFT called for an early decision on the extension of these exclusions, and we are pleased to see that USTR responded to our request. We thank USTR for extending these exclusions, and continue to encourage the implementation of a new, more transparent process for all importers affected by the Section 301 tariffs to apply for future exclusions.”
 

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AFT Statement on USITC Report Examining Distributional Effects of Trade Policy on U.S. Workers

WASHINGTON, D.C., (November 16, 2022) — Americans for Free Trade (AFT) spokesperson Jonathan Gold released the following statement in response to the U.S. International Trade Commission’s (USITC) report examining the distributional effects of trade and trade policy on U.S. workers:

“As numerous experts and industry leaders point out in the USITC’s report, workers and consumers across the U.S. are suffering from the cost of tariffs. Since the start of the trade war, Americans have paid more than $160 billion in tariffs, limiting our economy’s ability to grow and disproportionately harming vulnerable Americans. As United States Trade Representative Katherine Tai reviews the findings of this report, it is essential that she recognizes this harm and prioritizes bringing an end to the counterproductive trade war with China.”

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AFT Statement on Biden-Xi Meeting at G-20 Summit

WASHINGTON, D.C., (November 14, 2022) — Americans for Free Trade (AFT) spokesperson Jonathan Gold released the following statement on the heels of today’s meeting between President Joe Biden and Chinese President Xi Jinping at the G-20 Summit in Bali, Indonesia:

“It is encouraging to see President Biden and President Xi coming together to discuss one of the most important bilateral relationships to the health of the global economy. As they continue this dialogue and work to de-escalate tensions that have defined the U.S.-China relationship in recent years, they must address the ongoing trade war between the two nations. The tariffs – which have been in place for more than four years – have cost U.S. families and businesses more than $160 billion. As International Monetary Fund Managing Director Kristalina Georgieva acknowledged recently, these tariffs are counterproductive and allowing the trade war to continue at a time when inflation is top-of-mind for people around the world would represent a profound economic risk.”
 

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