PPAI, Business Community Partners Push Against Proposed Tariffs

PPAI is among a coalition of associations and trade groups who sent a letter Wednesday outlining concerns over the potential impact of tariffs imposed on China as a response to unfair trade practices. The letter, which was sent to the chairman and ranking members of the House Ways and Means Committee, opposes the implementation of tariffs as a response to the findings of the Office of the United States Trade Representative’s 301 investigation into China’s trade practices.

The coalition, which has grown to 107 member organizations including the National Retail Federation and the Security Industry Association, states that while it agrees China’s ongoing intellectual property rights violations, forced technology transfers and state interventions harm U.S.companies, workers, consumers and their competitiveness, it remains “concerned that the proposed tariff list, and escalating tariff threats made by the Administration … will not effectively advance our shared goal of changing these harmful Chinese practices.”

In its warning to the committee, the coalition also states: “The escalation of trade tensions with China could result in harm to all our member companies, member farms, their workers and their consumers. The impact of a trade war and tariffs would be felt by businesses, workers, farmers and consumers throughout the U.S. and across industry sectors. This would hurt the economy as a whole, as well as jobs and consumers in every state. Everyone loses in a trade war.”

The coalition notes that while the tariffs were announced as causing minimal pain to U.S. consumers, many of the products on the list are consumer goods, and that these costs will be passed to businesses and consumers in the form of higher prices. Furthermore, the list includes machinery, parts, chemicals and components that U.S. manufacturers and their workers need to make American products.

The result, according to the coalition, is an impact on downstream industries. “Higher costs for manufacturing will result in less production here in the U.S.,” the letter states. “If imposed, these tariffs will result in higher prices for American consumers and fewer jobs for American workers.”

To read the full letter, click here.

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