Trade groups mostly oppose Trump's tariffs on Chinese goods

WASHINGTON — Industry and retail trade groups for the most part are opposed to the Trump administration's decision to impose import tariffs ranging up to 25 percent on as much as $250 billion in goods imported from China.

President Trump announced the tariffs June 15, then on June 18 ordered U.S. Trade Representative Robert Lighthizer to draw up a further list of Chinese goods worth $200 billion to be levied 10-percent tariffs if China refuses to take steps to narrow the trade deficit with the U.S.

Among the products subject to 25-percent tariffs are new and retreaded aircraft tires, several types of machinery for molding or processing rubber and plastics, and a long list of motor vehicles.

The initial list of 1,102 Chinese products facing tariffs, covering 28 closely printed pages, was issued June 15. Besides the aforementioned goods, the list covers products in aerospace, information and communications technology, robotics and raw materials.

Tariffs against 818 products, totaling $34 billion, will go into effect July 6. The rest of the products, identified by an interagency committee as benefiting from Chinese industrial policies, will undergo further review and a public comment period.

"Trade between our nations…has been very unfair, for a very long time," Mr. Trump said in a June 15 statement explaining his reasons for the new tariffs. These tariffs are essential to preventing further unfair transfers of American technology and intellectual property to China, which will protect American jobs.

"In addition," he said, "they will serve as an initial step toward bringing balance to the trade relationship between the United States and China."

Mr. Trump promised further tariffs if China retaliated against the U.S., including new tariffs on American goods, services and agricultural goods, raising non-tariff barriers or taking punitive actions against American exporters or U.S. companies doing business in China.

In a statement issued the same day as the tariffs, the Chinese Ministry of Commerce promised to retaliate.

"We will immediately introduce taxation measures of the same scale and the same strength," the ministry said.

"All the economic and trade achievements previously reached by the two parties will no longer be valid at the same time," it said.

The 25-percent Chinese duties, which also become effective July 6, cover high-profile U.S. products such as electric vehicles, soybeans, whiskey, orange juice, lobsters, salmon and cigars.

The U.S. actions and planned retaliations are similar to those announced May 31, when Mr. Trump signed off on tariffs against steel and aluminum imports from Canada, Mexico and the European Union under Section 232 of the Trade Expansion Act.

In return, Canada, Mexico and the EU levied steep tariffs on U.S. manufactured goods and agricultural products.

The U.S. Tire Manufacturers Association, which said the earlier tariffs would harm its members, declined to comment on the action against China. However, many other organizations expressed a wide range of opinions on the new tariffs.

The Motor & Equipment Manufacturers Association (MEMA), which also expressed grave concerns over the tariffs against Mexico, Canada and the EU, said retaliatory tariffs against China could negate the benefits of tax reform and other measures the Trump administration has made to help U.S. business.

"The tariffs are taxes that hurt U.S. companies, put jobs at risk and negatively impact consumers," MEMA said. The association cited testimony it gave before the USTR in May, stating that tariffs on motor vehicle parts would not help redress intellectual property theft, but only harm U.S. vehicle parts manufacturers.

The Auto Care Association said it supports the administration's efforts to protect U.S. intellectual property, but is "deeply disappointed" that the administration failed to evaluate the economic harm to the cost of repair and maintenance on family autos and the unintended consequences of trade restrictions on the average American family.

The National Retail Federation (NRF) asked Congress to intervene for U.S. business on the tariffs issue.

"This is just what we predicted — a tit-for-tat trade war has erupted, and American families are caught in the middle," NRF President and CEO Matthew Shay said.

"Higher prices for everyday essentials and lost jobs threaten to sap the energy out of the strong U.S. economy, just as most Americans are starting to enjoy the benefits of historic tax reform," Mr. Shay said.

An NRF study conducted earlier this year found that $50 billion worth of tariffs against Chinese goods from reduce U.S. gross domestic product by nearly $3 billion and cost the nation 134,000 jobs, the association said.

The National Association of Manufacturers (NAM) said a binding bilateral trade agreement with China, not tariffs, was the best way to restructure America's trade relationship with China.

"Manufacturers certainly have concerns that tariffs will cause more problems than they solve, but we also recognize that that the administration may intend to use them as a negotiating tactic to bring China to the table and achieve larger goals," NAM President and CEO Jay Timmons said.

The Alliance for American Manufacturing (AAM), which has long supported action against China to reduce the trade deficit, supported the tariffs but said they weren't enough on their own.

"For too long, American businesses and workers have suffered devastating losses due to China's unchecked cheating," AAM President Scott Paul said. "These targeted tariffs are the right thing to do for our workers, our economy, and our future.

"While we support the administration's actions today, there is still much left to be done," Mr. Paul said. "Restricting Chinese investment, pursuing multilateral trade cases against Beijing, and defending our farmers and workers who may be unfairly targeted by Chinese retaliation must also be priorities."