CEO DATELINE - Trade groups decry Trump tariff threat
CEO DATELINE - Trade groups decry Trump tariff threat
- May 6, 2019 |
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Walt Williams
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Several associations are blasting President Donald Trump's threat to increase tariffs on many Chinese goods, saying his proposal would harm the U.S. economy.
In tweets on Sunday, Trump threatened to raise tariffs on $200 billion in Chinese goods from 10% to 25% by Friday. His comments threatened to upend trade negotiations currently taking place between the U.S. and China and sent the Dow Jones Industrial Average plummeting Monday morning, according to Fox Business. https://fxn.ws/2H4uPQP
Several business groups quickly weighed in after Trump sent out his tweets, noting that U.S. companies and consumers, and not the Chinese, ultimately pay for the tariffs.
"The president is seeking a better trade deal with China," Consumer Technology Association CEO Gary Shapiro said. "But he must understand the Chinese don't pay for these U.S. tariffs—American families, workers and companies pay for tariffs.
"Tariffs are taxes. And implementing these 25 percent tariffs on just five days' notice would roil our markets, damage U.S. businesses and do serious harm to Americans' retirement funds and pensions," he added.
Rick Helfenbein, CEO of the American Apparel & Footwear Association, also emphasized that tariffs are "an additional tax burden placed on Americans."
"These taxes are not paid by foreign nations and they result in higher costs that are simply passed on to the American consumer," he said. "The tariffs described by the president—both those that would be increased to 25% on Friday, and those that would be added to consumer goods like clothing and shoes that are not currently being charged with punitive tariffs—will only hurt U.S. families, U.S. workers, U.S. companies, and the U.S. economy."
David French, senior vice president for government relations at the National Retail Federation, said a better course of action for U.S. officials would be to form a multinational coalition with allies that share U.S. concerns.
"We urge the administration to reconsider this tax hike on Americans and stay at the bargaining table until a deal is reached," French said.
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