Coalition launches Cost of the Trade War Ticker showing Americans are paying $1,046 per second for recent import tariffs
(WASHINGTON) – Americans for Free Trade, a broad coalition of American businesses and trade associations united against tariffs, today sent a letter to President Donald Trump commending the administration for making progress on trade negotiations and recognizing the negative impact of tariffs on American Businesses by avoiding a tariff hike on March 2. The coalition emphasized the urgency of concluding trade talks as existing tariffs and ongoing uncertainty continue to hurt businesses across the country.
“It is our hope that this momentum will build in the weeks ahead and lead to a final deal that addresses structural issues in China, removes tariffs on both sides, and eliminates trade uncertainty facing American businesses and farmers,” the coalition wrote in a letter addressed to the President. “Although we are encouraged by the latest signs of progress, it is important to note that existing tariffs and shifting deadlines are hanging over American businesses and farmers and undermining their ability to grow, invest, and plan for the future.”
The letter also asks the administration to publish a required Federal Register notice before March 2 confirming and detailing the decision to avoid a tariff increase in order to provide the business community with certainty.
“We are eager to see a trade deal with China that addresses structural issues such as intellectual property theft and technology transfer while removing existing tariffs and the threat of tariffs in the future,” the coalition stated. “Millions of American farmers, businesses, workers, and families are counting on you to achieve a positive resolution that keeps America competitive on the global stage while growing our economy and protecting the millions of U.S. jobs supported by trade.”
RISING COST OF THE TRADE WAR
The coalition letter also highlights the rising cost of the trade war using monthly data on how much new tariffs have cost American businesses and consumers. The most recent monthly data, which comes from the U.S. Census Bureau, shows that American businesses paid an additional $2.7 billion in November 2018, a massive year-over-year increase from $375 million in tariffs on the same products in 2017.
Using this data, which the coalition and the Trade Partnership track and release each month, the coalition has now launched a Cost of the Trade War Ticker at www.TariffsHurt.com. The ticker shows that the cost of the trade war on import tariffs alone is roughly $1,046 per second. While that cost adds up to tens of billions in taxes on Americans, it does not include the added cost of retaliatory tariffs, government programs for farmers who have been hurt by tariffs or the cost of lost growth due to market and business uncertainty.
The full text of the letter can be found below and downloaded HERE.
February 27, 2019
President Donald J. Trump
The White House
1600 Pennsylvania Avenue
Washington, DC 20500
Dear Mr. President,
On behalf of the Americans for Free Trade coalition, we are writing to commend your commitment to achieving a fair trade deal with China and for recent progress that has been made during negotiations. We are encouraged by your decision to avoid a tariff increase on March 2 and allow negotiations to continue ahead of a planned summit with Chinese President Xi Jinping. We urge you to publish a Federal Register notice immediately confirming and detailing your decision in order to provide certainty to the business community, making clear to all stakeholders that tariffs do not automatically increase on March 2. Further, it is our hope that this momentum will build in the weeks ahead and lead to a final deal that addresses structural issues in China, removes tariffs on both sides, and eliminates trade uncertainty facing American businesses and farmers.
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, importers, exporters, and other supply chain stakeholders. Collectively, we support tens of millions of American jobs through our vast supply chains. We agree that China and other trading partners must be held accountable for trade violations. However, broadly applied tariffs do more harm than good and force American companies to foot the bill for China’s misbehavior.
According to data released by our coalition, American businesses paid an additional $2.7 billion in tariffs in November 2018 alone, the most recent month data is available from the U.S. Census Bureau. This represents a $2.7 billion tax increase and a massive year-over-year increase from $375 million in tariffs on the same products in November 2017. The data also shows that U.S. export growth hit its lowest level of 2018, thanks in part to a 37 percent decline in exports of products facing China’s retaliatory tariffs. This data highlights that tariffs as a negotiating tactic will always be a losing proposition because Americans — not foreign countries — are the ones paying the price.
Due to these costs, American employers are eager to see trade negotiations conclude as soon as possible and for all tariffs to be lifted. Although we are encouraged by the latest signs of progress, it is important to note that existing tariffs and shifting deadlines are hanging over American businesses and farmers and undermining their ability to grow, invest, and plan for the future.
Mr. President, we applaud the hard work of your administration to achieve better trade deals for the American people, and we are encouraged by the progress that has been made. As negotiations continue, we urge you to continue to listen to the concerns of American businesses faced with significant uncertainty. We are eager to see a trade deal with China that addresses structural issues such as intellectual property theft and technology transfer while removing existing tariffs and the threat of tariffs in the future. Millions of American farmers, businesses, workers, and families are counting on you to achieve a positive resolution that keeps America competitive on the global stage while growing our economy and protecting the millions of U.S. jobs supported by trade.
Sincerely,