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ICYMI: Economists Agree – It’s Time to Lift Tariffs

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.

AFT Statement Following Vote on Motion to Instruct Regarding Tariffs Exclusions Process

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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AFT Submits Letter in Support of Motion to Instruct, Calls to Include on Section 301 Product Exclusions Process

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)

AFT Statement on Congressional Negotiations Over Tariff Exclusions Process

WASHINGTON, D.C., (April 25, 2022) — Today, Americans for Free Trade (AFT) spokesperson Jonathan Gold released the following statement regarding Section 301 tariff exclusion provisions under consideration by the congressional conference committee reconciling legislation passed in the Senate and the House of Representatives to increase competition with China.

“It is imperative that the language calling for a new, transparent Section 301 tariff exclusions process included in the Senate version of the legislation is part of the final bill. The tariffs currently in place have proven to be an ineffective negotiation tactic, with China having fallen well short of its purchase commitments detailed in the Phase One Trade Deal. Instead, these tariffs continue to place an overwhelming burden on U.S. businesses, farmers, manufacturers, and consumers, as illustrated by a Moody’s Investor Service Report showing China paid just 7.6 percent of the cost of the tariffs while the rest fell to Americans. Tariffs make U.S. businesses less competitive globally, and providing businesses with a process to receive exemptions from these costly tariffs could provide much-needed relief.”

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AFT Submits Statement for the Record on Biden Administration’s 2022 Trade Policy Agenda

WASHINGTON, D.C., (April 13, 2022) — Today, Americans for Free Trade (AFT), a broad coalition of American businesses, trade organizations, and workers united against tariffs submitted a statement for the record to leadership of the Senate Finance and House Ways & Means Committees following the committees’ hearings regarding the Biden administration’s 2022 Trade Policy Agenda. 

“As companies in the U.S. continue to recover from the global pandemic, face supply chain disruptions, and operate in an inflationary economic environment, we continue to call upon the administration to use more strategic tools to address China’s unfair trade practices without further damaging U.S. competitiveness,” Americans for Free Trade wrote. “We continue to call for an end to the China 301 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.”

In addition to calling for an end to existing Section 301 tariffs, AFT urged the committees to include language in a conferenced China competition bill that would require the Office of the United States Trade Representative to reinstitute a comprehensive, transparent, and fair exclusions process – with retroactivity – for products subject to the Section 301 tariffs. Beyond that, AFT urged the committees to inquire about USTR’s plans for reviewing the tariffs, including timing and opportunities for stakeholder input.

The full text of the letter may be found here.

AFT Sends Letter to USTR Calling for Holistic, Transparent Tariff Review

WASHINGTON, D.C., (March 29, 2022) — Today, Americans for Free Trade (AFT), a broad coalition of American businesses, trade organizations, and workers united against tariffs sent a letter to United States Trade Representative Katherine Tai expressing strong support for a fully transparent review of the Section 301 tariffs on products from China which includes a comprehensive economic assessment of the tariffs’ impact on the American economy.

“In your upcoming testimony before Congress regarding the 2022 Trade Policy Agenda, we urge you to share USTR’s plans for reviewing the tariffs, including timing and opportunities for stakeholder input,” Americans for Free Trade wrote. “We believe the review presents an important opportunity to assess the Trump Administration’s tariffs and determine whether the Biden-Harris Administration will continue them as part of its China trade policy.”

In addition to calling for a fully transparent review which includes input from all stakeholders – including those who pay the tariffs – the letter calls on USTR to extend its review to all four tariff lists in order to provide a more holistic assessment of the tariffs’ impact on American businesses, workers, farmers, and consumers.

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


March 29, 2022

The Honorable Katherine Tai 
United States Trade Representative 
600 Seventeenth Street, N.W. 
Washington, D.C. 20508

RE:      Section 301 China Tariffs Review Process

Dear Ambassador Tai:

            We write today to express our strong support for a fully transparent review of the Section 301 tariffs on products from China, including a comprehensive economic assessment of the tariffs’ impact on American businesses, workers, farmers, and consumers. In your upcoming testimony before Congress regarding the 2022 Trade Policy Agenda, we urge you to share USTR’s plans for reviewing the tariffs, including timing and opportunities for stakeholder input. We believe the review presents an important opportunity to assess the Trump Administration’s tariffs and determine whether the Biden-Harris Administration will continue them as part of its China trade policy. 

            Our companies and associations joined together to form Americans for Free Trade in 2018. Our coalition represents every part of the U.S. economy including manufacturers, farmers and agribusinesses, retailers, technology companies, service suppliers, natural gas and oil companies, renewable energy companies, importers, exporters, and other supply chain stakeholders. Collectively, we employ tens of millions of Americans through our vast supply chains.

            American importers, including members of our coalition, have been assessed close to $130 billion in tariffs since President Trump first imposed tariffs on products from China nearly four years ago. As you know, List 1 of those tariffs is set to expire in July unless USTR receives a petition for a continuation of the tariffs, which we understand is almost certain to occur. Such a request would trigger a review process under the statute, requiring USTR to examine the effectiveness of the tariffs in achieving their objectives and other actions that could be taken, as well as the effects of such actions on the U.S. economy, including consumers. 

            While USTR would only be required to conduct this review with respect to List 1, we urge USTR to include all four tariff lists in its review. A single review for all four tariff lists would create administrative efficiencies for USTR and American companies. It would also permit a more holistic assessment of whether the tariffs achieved their stated objectives and provide a full picture of the impact the tariffs have had to the U.S. economy, as well as American businesses, workers, and consumers. It would also give USTR the opportunity to consider whether the 301 tariffs represent the best path forward considering U.S. companies continue to face many of the same challenges with respect to trade with China today as they did when the tariffs were first imposed.

            Further, it is essential that the review process be fully transparent and include a public comment period and public hearings to ensure that the Administration gives all stakeholders – including stakeholders who pay the tariffs –the opportunity to provide input. A review that does not include the American businesses, workers, farmers, and consumers burdened by the tariffs would be inconsistent with the commitments USTR has made in its Transparency Principles, congressional testimony, and the 2022 Trade Policy Agenda and 2021 Annual Report regarding public outreach, engagement, and transparency. 

            We look forward to hearing your testimony at the upcoming congressional hearings. We commit to working with you on a trade policy agenda that tackles the unprecedented economic challenges facing American families, workers, and businesses.

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

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 Food Institute

Pet Industry Joint Advisory Council

Plumbing Manufacturers International 

Power Tool Institute (PTI)

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

Society of Chemical Manufacturers & Affiliates

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 (SFIA)

TechNet

Telecommunications Industry Association (TIA)

Texas Retailers Association

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)

ICYMI: Four Years On, Tariffs Still an Economic Burden

The trade war with China hits its fourth anniversary this year, with the Biden administration set to soon begin a review of the Section 301 tariffs first imposed by former President Donald Trump in 2018. Since then, these tariffs have taxed American business owners nearly $130 billion for the goods they need to stay afloat.

A new study from the International Monetary Fund sheds light on the damaging effects of trade wars, noting that “bilateral tariff wars hurt the two parties involved the most,”as expenses grow in the countries that impose tariffs. 

As one business owner wrote in The Well News ahead of President Joe Biden’s first State of the Union address earlier this month, “Tariffs are taxes that the American government levies on American businesses for the cost of importing the things they need … That is money that businesses could reinvest to grow, hire new employees and light the spark to power a full economic recovery.”

The trade war has proven to be a failed experiment, not just because of the costs that businesses are forced to bear in the U.S., but also because China has come up well short of its obligations under the Phase One Trade Deal. Dan Digre of MISCO Speakers recently wrote on the second anniversary of the trade deal for Entrepreneur:

“When the previous administration first put the tariffs in place … it claimed that they would give the U.S. leverage in its negotiations with China, insisting that China would be ultimately responsible for paying the cost of the tariffs. However, that simply isn’t true, no matter how many times some have claimed it is. The tariffs haven’t been an effective way to hold China accountable; they’ve been an incredible burden on our economy.”

The need to lift the tariffs is also growing increasingly urgent as record inflation continues to batter American industry, which RedState contributor Christopher Arps recently discussed: 

“President Joe Biden and U.S. Trade Representative Katherine Tai should … end a trade conflict that, while well-intentioned, has ultimately backfired on American businesses, workers, families, and consumers … This action would provide an immediate boost to struggling businesses — that the vast spending packages still being debated in Washington haven’t.”

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

AFT Statement on Upcoming Section 301 Tariff Review

WASHINGTON, D.C., (March 9, 2022) — Today, Americans for Free Trade (AFT) spokesperson Jonathan Gold released the following statement on the heels of reports that the Biden administration is set to begin a review of the first set of Section 301 tariffs on more than $300 billion on imports from China imposed by the Trump administration in 2018.

“American importers have paid close to $130 billion in tariffs since President Trump first initiated his trade war with China four years ago. As the Biden administration begins its review of these tariffs, it is absolutely essential that the review process is fully transparent, involves stakeholder input – including stakeholders who pay the tariffs, and includes a full economic assessment of the tariffs’ impact from the Office of the U.S. Trade Representative. Moreover, this review should not just be limited to the first list of tariffs that were implemented, but should extend to all four lists. Tariffs are taxes on American families, consumers, and businesses. Tariffs add costs and create uncertainty for already strained supply chains, and are particularly harmful as record inflation increases the costs of the everyday goods Americans need most.”
 

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AFT Sends Letter to Congressional Leadership Urging Action on Transparent, Fair Tariffs Exclusions Process

WASHINGTON, D.C., (March 3, 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 Majority Leader Chuck Schumer, Senate Minority Leader Mitch McConnell, Speaker of the House Nancy Pelosi, and House Minority Leader Kevin McCarthy encouraging Congress to include language requiring the Office of the United States Trade Representative (USTR) to restart a comprehensive, transparent, and fair exclusions process for products subject to 301 tariffs.

“While we continue to call for an end to the additional tariffs on U.S. companies as well as China’s retaliatory tariffs, we believe reinstituting the section 301 exclusion process is critical to providing interim relief for U.S. businesses,” Americans for Free Trade wrote.“We welcomed USTR’s announcement in October to open an exclusions process for a limited set of products. However, that process is only available to approximately 1 percent of the original exclusion applications and USTR has yet to announce any new exclusions from the process. To provide meaningful relief, a more robust process is needed.”

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

March 3, 2022

The Honorable Chuck Schumer                    
Majority Leader
U.S. Senate
Washington, DC 20510

The Honorable Mitch McConnell
Minority Leader
U.S. Senate
Washington, DC 20510

The Honorable Nancy Pelosi   
Speaker of the House 
U.S. House of Representatives
Washington, DC 20510

The Honorable Kevin McCarthy
Minority Leader
U.S. House of Representatives
Washington, DC 20510
 

RE:     Support for Section 301 Product Exclusions Process in China Competition Legislation
 

Dear Majority Leader Schumer, Minority Leader McConnell, Speaker Pelosi, and Minority Leader McCarthy:

The Americans for Free Trade (AFT) coalition supports congressional action on bipartisan legislation that will help American businesses and workers compete globally, including against China. Integral to improving U.S. competitiveness is addressing harmful tariffs that have increased costs for American businesses and families. For this reason, we strongly support language included as part of the Trade Act of 2021 in the U.S. Innovation and Competition Act (S. 1260) that would require the Office of the U.S. Trade Representative (USTR) to reinvigorate the exclusion process for products subject to additional tariffs under Section 301 of the Trade Act of 1974. Such a provision enjoyed overwhelming bipartisan support, with a 91-4 vote. We had hoped such language would be included in the America COMPETES Act (H.R. 4521), but regrettably, it was not. As these two China competition bills move towards a conference process, we urge Congress to include language requiring USTR to restart a comprehensive, transparent, and fair exclusions process – with retroactivity – for products subject to the 301 tariffs.

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 companies in the U.S. continue to recover from the global pandemic, face supply chain disruptions, and operate in an inflationary economic environment, we continue to call upon the administration to use more strategic tools to address China’s unfair trade practices without further damaging U.S. competitiveness. To date, U.S. Customs and Border Protection has assessed nearly $127 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 place a financial burden on U.S businesses – negatively impacting their ability to invest in their companies, hire more American workers, and remain competitive globally.

While we continue to call for an end to the additional tariffs on U.S. companies as well as China’s retaliatory tariffs, we believe reinstituting the section 301 exclusion process 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.” Further, recent articles have highlighted that the tariffs are having a modest but real impact on inflationary pressures.[1] A new, comprehensive, transparent, and fair exclusions process would help alleviate the economic burden on American businesses and consumers. 

We welcomed USTR’s announcement in October to open an exclusions process for a limited set of products. However, that process is only available to approximately 1 percent of the original exclusion applications and USTR has yet to announce any new exclusions from the process. To provide meaningful relief, a more robust process is needed. 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.  

Absent a clear indication from USTR that it will use its authority to provide a comprehensive, transparent, and fair exclusions process, Congress must act. We therefore urge Congress to include language in a conferenced China bill that would require USTR to reinstitute a comprehensive, transparent, and fair exclusions process – with retroactivity – for products subject to the section 301 tariffs.

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

Carolina Loggers Association

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 Business Alliance

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 Printing Ink Manufacturers

National Association of Trailer Manufacturers (NATM)

National Confectioners Association

National Council of Chain Restaurants

National Customs Brokers and Freight Forwarders Association of America

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

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 Industry Joint Advisory Council

Plumbing Manufacturers International 

Power Tool Institute (PTI)

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

Society of Chemical Manufacturers & Affiliates

Software & Information Industry Association (SIIA)

South Atlantic Bottled Water Association

South Dakota Retailers Association

Southeastern 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

The Vinyl Institute

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

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)

CC:      Members of the United States Senate

            Members of the United States House of Representatives

Articles Related to Tariffs’ Effect on Inflation:

Bloomberg, Feb. 8, 2022

The Washington Post | Feb. 8, 2022

Star Tribune | Feb. 6, 2022

Vogue Business | Jan. 5, 2022

The Wall Street Journal | Dec. 5, 2021

Harvard Kennedy School | Dec. 1, 2021

Progressive Policy Institute Newsletter

Federal Reserve Bank of San Francisco | Feb. 25, 2019

Administration Comments on Tariffs & Inflation

CNBC | Nov. 30, 2021

CNN | Nov. 21, 2021

Nov. 14, 2021

Reuters | Nov. 1, 2021

Recent AFT Coalition Member Pieces:

2 Years Since Trade Deal with China, Tariffs Aren’t Working for American Businesses

Entrepreneur, MSN | Feb. 11 2022

Trade Wars Worsen Shipping Crisis

Townhall | Sept. 7, 2021

Joe Bell: Ongoing trade war limits recovery for U.S. businesses

Tribune Review | June 23, 2021

Repeal Tariffs to Boost the Economy, Help Small Businesses

RealClearMarkets | March 25, 2021

Removing tariffs is key to economic relief

Washington Examiner, Feb. 24, 2021
 


[1] See the attached list of articles discussing the section 301 China tariffs’ contributions to U.S. inflation woes.

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AFT Statement on President Biden’s 2022 Trade Agenda

WASHINGTON, D.C., (March 1, 2022) — Today, Americans for Free Trade (AFT) spokesperson Jonathan Gold released the following statement regarding President Joe Biden’s 2022 trade policy agenda.

“The lack of action taken to end the trade war continues to be disappointing. President Biden and Ambassador Tai should be laser-focused on providing American consumers and businesses relief by removing the harmful Section 301 tariffs. For over three years, Americans have suffered and paid over $126 billion in tariffs. We are calling on the Biden administration to take immediate action and prioritize Section 301 tariff policy this year.”