PPAI Joins Business Community In Opposing Potential Tariffs

As reported Monday in a PPB Newslink Breaking News alert, PPAI has joined 44 other associations and trade groups representing a broad coalition of the U.S. business community in a letter to President Trump that opposes tariffs as a response to the findings of the Office of the United States Trade Representative’s 301 investigation on China’s trade practices.

The letter spotlights serious concerns regarding China’s trade policies and practices, including market access barriers and state-direct investment policies, and technology transfer and data localization mandates, among other issues. It further states that placing tariffs on products that are legitimately produced and traded is not the solution. Instead, it urges the Administration to take measured, commercially meaningful actions consistent with international obligations that benefit U.S. exporters, importers and investors, rather than those that would penalize the American consumer and jeopardize recent gains in American competitiveness.

Last week a variety of news outlets reported that tariffs of up to $60 billion could be imposed. Such tariff treatment would likely be harmful to the promotional products industry. The specific list of tariffs has not been released, but it appears that the technology and telecommunications sectors will be targeted, and other affected products could include a variety of items including toys, apparel, footwear and consumer technology.

The level of tariffs has also not been specified. Although there could be up to 100 products vulnerable to the tariffs, the White House has not announced whether there will be one global tariff on products from China, or if there will be varying tariff levels depending on the product.

Imposing tariffs on electronics, apparel and other products would raise prices for American consumers and companies and would not do much to address the problems that stem from unfair trade practices in China. Effectively, the increased costs would impose a tax on consumers and businesses.

PPAI encourages industry practitioners to contact their members of Congress and urge them to oppose this harmful tariff announcement.


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