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The trade war with China has caused American business owners to struggle since 2018. Data from Tariffs Hurt the Heartland shows that the trade war has cost U.S. businesses, workers, and manufacturers over $94 billion. 

Unfortunately, while the trade war continues to devastate the economy, this week United States Trade Representative (USTR) Katherine Tai announced that the Biden administration will keep the previous administration’s failed tariff policy in place. Americans for Free Trade stands with American businesses and expressed disappointment in this news: 

“Leaving the tariffs in place will only continue the harm they’ve done to the American economy. President Joe Biden and Ambassador Tai should prioritize ending the trade war, rather than building on existing tariffs.”

Small business owners agree that it’s time to lift the tariffs. Ann Brunett of The Mitchell Group recently wrote that businesses like hers are doomed so long as harmful practices like the trade war are left untouched.

“If the tariffs are left in place, small-business owners like me will be burdened with the taxes that tariffs add to the products we need to satisfy our customers. Combined with the ballooning shipping crisis, a lot of businesses won’t be able to cope.”

Joe Bell of Aqua Filter Fresh in Pittsburgh, Pennsylvania echoed this sentiment and noted that ending the trade war is essential in order for our country’s economy to thrive.

“Unless President Joe Biden and United States Trade Representative Katherine Tai move to repeal those tariffs, there will be a large number of businesses and workers who won’t fully enjoy the fruits of the economic recovery.”

Business experts concur. “The path forward is clear: Biden and Tai cannot allow the Trump administration’s unacceptable and misguided trade policies to continue,” wrote Dewey Beach Commissioner Paul Bauer.

The time is now to end tariffs and help American businesses recover.

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., (October 4, 2021) — Today, Americans for Free Trade spokesperson Jonathan Gold released the following statement expressing disappointment regarding United States Trade Representative Katherine Tai’s announcement of the Biden administration’s strategy for approaching trade with China.

“For more than three years, American businesses have been struggling with the costs created by tariffs on more than $350 billion in goods imported from China. The trade war is a failed policy of the previous administration, and we are disappointed to hear that the current tariffs will remain in effect. Leaving the tariffs in place will only continue the harm they’ve done to the American economy. President Joe Biden and Ambassador Tai should prioritize ending the trade war, rather than building on existing tariffs. At the minimum, the Biden administration must reopen the exclusions process for all products. Beyond this, it should also undertake an honest assessment of the impact the tariffs have had on the U.S. economy, businesses, workers, and innovation. We are calling on the Biden administration to be more transparent with all stakeholders in U.S.-China trade policy so it can formulate an approach that is better informed by the real impact tariffs like these have had.”

WASHINGTON, D.C., (August 27, 2021) — Americans for Free Trade spokesperson Jonathan Gold today released the following statement calling on United States Trade Representative (USTR) Katherine Tai to extend all tariff exclusions for products needed to combat COVID-19 and reinstate tariffs exclusions for other Section 301 products.
 
“As the Delta variant continues to surge across the nation, it is critical that the Biden administration does everything it can to protect American workers, consumers, and businesses – including extending tariff exclusions on products used to fight COVID-19. We are calling on Ambassador Tai to issue an immediate blanket extension on any and all products needed to fight the pandemic. In order to help sustain our economy, USTR should strongly consider granting and reinstating exclusions to all the products identified by the U.S. International Trade Commission in the revision to its 2020 report.”

WASHINGTON, D.C., (August 5, 2021) — Today, Americans for Free Trade spokesperson Jonathan Gold released the following statement ahead of the Washington state trade policy roundtables in which United States Trade Representative (USTR) Katherine Tai and Representative Suzan DelBene (D-WA-1) are participating.

“Americans for Free Trade would like to thank Congresswoman DelBene for her leadership and efforts to provide worker-centric trade policies alongside Ambassador Tai and the Biden administration. In order for American businesses, workers, farmers, and manufacturers to reach their full potential, however, Congress must work with the administration to lift the harmful tariffs that remain in place and end the trade war with China. Americans have paid over $90 billion in tariffs since the trade war began, including $2.3 billion in Washington state alone. Lifting the tariffs is a commonsense solution that will boost the economy and truly allow a worker-centric trade agenda to thrive.”

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The trade war with China is continuing to devastate the U.S. economy. According to data from Tariffs Hurt the Heartland, the trade war has cost Americans over $94 billion, including nearly $12 billion in the first four months of 2021.

Businesses, consumers, manufacturers, and workers are seeing the impact of the trade war firsthand. In fact, data from Moody’s Investor Services shows that, “American businesses are bearing most of the cost burden from the elevated tariffs imposed at the height of the U.S.-China trade war.” 

This is troublesome and will pressure U.S. retailers to pass costs on to consumers. U.S. Treasury Secretary Janet Yellen agrees that the trade war is harmful and that tariffs are problemsome to consumers, telling the New York Times:

“Tariffs are taxes on consumers. In some cases it seems to me what we did hurt American consumers, and the type of deal that the prior administration negotiated really didn’t address in many ways the fundamental problems we have with China.”

It’s not just consumers who are struggling. Lynn Holmes, who is the former Chairman of the North Carolina Employment Security Commission, recently wrote in the Washington Times that President Biden and his administration can help workers who have been struggling by ending the trade war.

“Tariffs are not worker-friendly. They are damaging taxes that are headwinds to realizing our full economic potential as we emerge from the pitfalls of the past year. To truly achieve worker-centric trade policies, the Biden administration needs to end the trade war and provide businesses with the tariff reprieve they’ve been asking for over the past three years.”

Economic experts have echoed this notion. The International Monetary Fund (IMF), has advised President Biden to end the tariffs, writing:

“The [Biden] administration has underscored the need for a ‘worker-centric’ trade agenda that ensures that global trade benefits Americans as workers and wage-earners, not just as consumers. In pursuing these objectives, a removal of the obstacles to free trade would help support U.S. workers and create more and better U.S. jobs…”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., (June 30, 2021) —  Americans for Free Trade, a broad coalition of American businesses, trade organizations, and workers united against tariffs today sent a letter to Speaker of the House Nancy Pelosi and House Minority Leader Kevin McCarthy expressing strong support for elements of the Trade Act of 2021 that were included in the U.S. Innovation and Competition Act (S. 1260) that recently passed the Senate. 

Over 170 trade associations signed the letter to Speaker Pelosi and Leader McCarthy.

“As companies in the U.S. continue to recover from the global pandemic, we continue to call upon the administration to resolve the ongoing trade war with China,” Americans for Free Trade wrote. “To date, U.S. Customs and Border Protection has collected over $92 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 concerns regarding inflation.”

The full text of the letter may be found here and below.

June 30, 2021

RE: House Action on USICA, Section 301 Product Exclusions Process

Dear Speaker Pelosi and Leader McCarthy,

On behalf of the undersigned members of Americans for Free Trade, we are writing to express strong support for elements of the Trade Act of 2021 that were included in the U.S. Innovation and Competition Act (S. 1260) recently passed by the Senate. As the House considers how to proceed on USICA, we believe it is critical that the House join the Senate in passing legislation that includes the Trade Act of 2021, especially Section 73001, to 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 companies in the U.S. continue to recover from the global pandemic, we continue to call upon the administration to resolve the ongoing trade war with China. To date, U.S. Customs and Border Protection has collected over $92 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 concerns regarding 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.

While we continue calling for an end to the trade war and elimination of 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 helping 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 unilaterally – as Section 301 authorizes it to do – to reinstate expired product exclusions or reinvigorate the product exclusion process, it is essential the Congress act. Further, it appears that USTR may wait until its ongoing China trade policy review concludes before taking up this issue at all. That means that businesses in urgent need of relief right now will not get it for months. For these reasons, we urge the House to include the Trade Act of 2021 and especially Section 73001, with technical corrections as needed, in any appropriate upcoming legislative vehicles.

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. In the interim, reinstituting a fair and transparent exclusion process in the interim will provide a targeted relief mechanism that will help U.S. businesses recover from the economic recession and continue to invest in their businesses and workers here at home.

Thank you for your consideration.

Sincerely,

Americans for Free Trade

WASHINGTON, D.C., (June 10, 2021) — Today, Americans for Free Trade spokesperson Jonathan Gold released the following statement in response to United States Trade Representative (USTR) Katherine Tai’s remarks before the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) calling for workers to be a part of trade negotiations.

“We agree with and applaud the efforts of both President Biden and Ambassador Tai to create a worker-centric trade policy. However, a key element of re-examining past trade policy will be to take into consideration the negative impact of tariffs on jobs, investment, and the American worker. For example, current tariffs on imports from China only continue to deter companies from investing, hiring, and benefitting workers in the United States. American businesses and workers have already paid over $86 billion in tariffs. In order to truly accomplish a trade policy that benefits workers, the tariffs must be eliminated as soon as possible.”

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WASHINGTON, D.C., (May 27, 2021) — Americans for Free Trade, a broad coalition of American businesses, trade organizations, and workers united against tariffs yesterday sent a statement for the record regarding the Senate Finance Committee and House Ways and Means Committee’s 2021 Trade Policy Agenda hearings to Chairman Ron Wyden (D-OR), Ranking Member Mike Crapo (R-ID), Chairman Richard Neal (D-MA-1), and Ranking Member Kevin Brady (R-TX-8).

“As the Administration and Congress continue focusing on the U.S. economic recovery from the pandemic, a strategic trade agenda is a key element in ensuring this recovery succeeds,” Americans for Free Trade wrote. “We appreciate that several members of the Committees inquired about the status of USTR’s China review during the hearings. The China review is of critical importance and must be a top priority for the Administration. The tariffs continue to cause economic harm to businesses both small and large across the country, as well as to American consumers and workers who bear the downstream impacts of these tariffs.”

The full text of the letter may be found here and below.

Dear Chairman Wyden, Ranking Member Crapo, Chairman Neal, and Ranking Member Brady,

The Americans for Free Trade coalition, a broad alliance of American businesses, trade organizations, and workers united against tariffs, respectfully submits this written statement to include in the public record of the Senate Finance Committee and House Ways and Means Committee’s 2021 Trade Policy Agenda hearings, which took place on May 12 and 13, respectfully. We appreciate the Committees holding hearings on this important matter.

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 the Administration and Congress continue focusing on the U.S. economic recovery from the pandemic, a strategic trade agenda is a key element in ensuring this recovery succeeds. A robust economic recovery requires the U.S. to create and expand import and export opportunities for American businesses to reach new markets, create jobs here at home, and compete globally. It also requires the U.S. to craft a defined China policy that addresses unfair trading practices but removes ill-conceived tariffs that continue to harm all American businesses whether they are importing inputs to manufacture products domestically or finished goods. To date the U.S. has collected over $87 billion in tariffs, which are taxes paid by U.S. importers. In other words, these tariffs are paid by Americans, not China. They have caused significant financial hardship for U.S. businesses, the millions of workers they employ, and the millions of American consumers they serve. At the same time, they have failed to effectively address China’s unfair trading practices.

We appreciate that several members of the Committees inquired about the status of USTR’s China review during the hearings. The China review is of critical importance and must be a top priority for the Administration. The tariffs continue to cause economic harm to businesses both small and large across the country, as well as to American consumers and workers who bear the downstream impacts of these tariffs. In fact, Moody’s Investor Services just released a new report finding that 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.” Any delay in reviewing the China trade policy means delaying relief to these Americans – the same Americans whom Congress worked so hard to support in multiple major pieces of pandemic legislation.

We also appreciate that the Administration plans to review the section 301 tariffs on products from China as part of its “top-to-bottom” review and applaud it for wanting to take a thoughtful and deliberate approach. It is critical that this review begin immediately and identify a clear timeline for the review’s completion. This review must also include a determination as to whether the tariffs are achieving the stated objective of changing China’s policies and behavior and whether they provide any actual leverage in negotiations.

Unfortunately, the tariffs continue to cause economic harm to businesses both small and large across the country, as well as to American consumers and workers who bear the downstream impacts of these tariffs. Any delay in reviewing the China trade policy means delaying relief to these Americans – the same Americans whom Congress worked so hard to support in multiple major pieces of pandemic legislation. Time is of the essence.

This is why we support the Administration launching a new product exclusion process sooner rather than later. We are therefore deeply concerned that the Administration will not decide on whether to resume the exclusions process until it completes its overall China review. Reinstatement of a product exclusion process to provide targeted relief to Americans can happen while this review is ongoing. We strongly encourage the Committees to urge the Administration to immediately reinstate a product exclusion process and to reinstate all product exclusions that expired in 2020.

Furthermore, the previous section 301 product exclusion process had significant flaws, and we agree it needs improvement. We also appreciate that the Administration is interested in stakeholder feedback to better understand the shortcomings of the previous process. However, we are concerned that during the hearing, the Administration offered no timeline regarding when this stakeholder engagement might take place or when the broader review might be concluded. We support the Administration reaching out to stakeholders to solicit feedback on the exclusions process, and such stakeholder engagement should include American companies impacted by the tariffs. However, ample feedback has been provided to the Administration over the last several years identifying transparency, consistency, and fairness issues with the previous process, and we believe this outreach should not delay instituting a targeted process for providing relief to American businesses.

As the Administration and Congress continue to focus on the economic recovery from the COVID-19 pandemic, lifting the section 301 tariffs on products from China is a simple, straightforward way to provide an economic boost to American families, American workers, and American businesses and to help ensure a successful economic recovery. It is also an important step to repairing relationships with U.S. trading partners and allies and restoring our standing on the world stage.

We appreciate the Committees’ continued engagement on these important issues and urge it to continue weighing in with the Administration to ensure that destructive tariffs are lifted, and that a new and more effective approach to addressing China’s unfair trading practices is adopted. We thank the Committees for holding these hearings and look forward to working with you on these important issues.
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WASHINGTON, D.C., (May 11, 2021) — Ahead of Ambassador Katherine Tai’s appearance before the Senate Finance Committee and House Ways and Means Committee, Americans for Free Trade today sent a letter to Chairman Ron Wyden (D-OR), Ranking Member Mike Crapo (R-ID), Chairman Richard Neal (D-MA-1) and Ranking Member Kevin Brady (R-TX-8) that reiterates the need for Congress to work with the Biden administration to remove tariffs in order to revitalize the economy and urges the Committees to use the upcoming USTR hearing as an opportunity to gain insight into the Administration’s plans to address the U.S.-China relationship.

“As the Administration continues focusing on the U.S. economic recovery from the pandemic, a strategic trade agenda is a key element in ensuring this recovery succeeds. A robust economic recovery requires the U.S. to create and expand import and export opportunities for American businesses to reach new markets, create jobs here at home, and compete globally,” Americans for Free Trade wrote. “It also requires the U.S. to craft a defined China policy that addresses unfair trading practices but removes ill-conceived tariffs that continue to harm all American businesses whether they are importing inputs to manufacture products domestically or finished goods.”

Removing the tariffs that American businesses, workers, and consumers pay and closely reviewing our trade policy with China must be top priorities for Ambassador Tai. The trade war with China has cost taxpayers over $80 billion and caused over 200,000 jobs to be lost.

The full letter can be found here and below.

May 11, 2021

Dear Chairman Wyden, Ranking Member Crapo, Chairman Neal, and Ranking Member Brady,

On behalf of the Americans for Free Trade coalition, thank you for holding hearings on the President’s 2021 Trade Policy Agenda. We believe this is a critical time for Congress to hear from the Administration on this important topic.  

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, including many of your constituents, through our vast supply chains.  

As the Administration continues focusing on the U.S. economic recovery from the pandemic, a strategic trade agenda is a key element in ensuring this recovery succeeds. A robust economic recovery requires the U.S. to create and expand import and export opportunities for American businesses to reach new markets, create jobs here at home, and compete globally. It also requires the U.S. to craft a defined China policy that addresses unfair trading practices but removes ill-conceived tariffs that continue to harm all American businesses whether they are importing inputs to manufacture products domestically or finished goods. To date the U.S. has collected over $87 billion in tariffs, which are taxes paid by U.S. importers. In other words, these tariffs are paid by Americans, not China. They have caused significant financial hardship for U.S. businesses, the millions of workers they employ, and the millions of American consumers they serve. At the same time, they have failed to effectively address China’s unfair trading practices.  

Our coalition was deeply concerned to learn at a recent Senate Appropriations Committee hearing that USTR has not even started its review of the China trade policy. We believe this review should be a top priority for USTR. The tariffs continue to cause economic harm to businesses both small and large across the country, as well as to American consumers and workers who bear the downstream impacts of these tariffs. Any delay in reviewing the China trade policy means delaying relief to these Americans – the same Americans whom Congress worked so hard to support in multiple major pieces of pandemic legislation.  

It is therefore critical that USTR begin its China trade policy review immediately. This review must also include a determination as to whether the tariffs have had the desired impact to change policy in China and whether they provide any actual leverage in negotiations. Further, it is critical that USTR immediately reinstate a product exclusions process to provide targeted relief to Americans while this review is ongoing.  

As the committees consider questions for Ambassador Tai in this week’s hearings, we recommend the following questions be posed to gain insight into the Administration’s plans for tackling our trade relationship with China:  

1. Will you commit to beginning a full China trade policy review by the end of May? How long do you anticipate such a review to take? Will you commit that this review includes an assessment of the economic impact of the Section 301 tariffs and China’s retaliatory tariffs?  

2. Will you commit to launching a new China Section 301 product exclusion process by the end of May to provide targeted relief while the broader China trade policy review takes place? Will this process include reinstatement of exclusions that expired in 2020?  

3. How are the Section 301 tariffs on imports from China creating “leverage” when the U.S.  trade deficit with China has only increased since the imposition of the tariffs in 2018-2019. 

4. Why is keeping the China market closed to American exports – due to its retaliatory tariffs – in the U.S. national interest? Can you explain how American exporters will gain back market share in the massive China market now that it has been lost to their competitors abroad? What will the Administration do to support these exporters and how will it open new markets for their exports if the China market remains closed?  

5. The negative impact of the tariffs on American businesses, farmers and service suppliers is well documented. Can you commit to lifting the tariffs to help U.S. employers continue their economic recovery and grow U.S. jobs and make us more competitive?  

6. Will you commit to not favoring American workers in one U.S. industry over another U.S.  industry and helping import-reliant workers and companies if the tariffs stay in place? Do you believe that Trade Adjustment Assistance should be expanded to allow workers who lost their jobs due to U.S. additional tariffs under Section 301, Section 232, and Section 201 to retrain, reskill, and be rehired?  

7. You have previously indicated that there are a “whole slew of policy tools,” beyond tariffs that can be deployed with respect to the U.S.-China trade relationship. What other tools beyond tariffs are you exploring? Are there any authorities you are lacking that would help you deploy these other tools?  

We appreciate your consideration of these questions and look forward to working with Congress and the Administration on this important issue.

Sincerely,  

Americans for Free Trade