PPAI, Trade Groups Push For Trade War Resolution At Upcoming G-20 Summit
PPAI joined with 145 other trade associations in sending a letter today to President Trump encouraging him to resolve the ongoing trade dispute with China at this week’s G-20 Summit in Argentina. President Trump and China’s President Xi are scheduled to have a meeting on this issue alongside the summit, which brings together leaders of the world’s 20 largest economies.
The coalition PPAI joined represents manufacturers, farmers and agribusinesses, retailers, technology companies, service suppliers, natural gas and oil companies, importers, exporters and other supply chain stakeholders. The letter notes that while trade partners should abide by global trade rules and that the coalition partners believe targeted trade actions can be effective, broadly applied tariffs are not. The issue is expected to be exacerbated on January 1, when 10 percent tariffs on $200 billion worth of goods are slated to bump up to 25 percent, while tariffs on the remaining $267 billion in Chinese imports may go into effect later in 2019.
Also highlighted in the letter are the effects of the existing tariffs. According to data released by the joint Tariffs Hurt the Heartland campaign in October 2018, American businesses paid over $5.6 billion in tariffs—more than a 70 percent increase from the same month last year. In September 2018, U.S. exports subject to retaliatory tariffs declined by $2.5 billion, or 26 percent, from the previous year, having an immediate and severe impact on U.S. products sent abroad.
The letter notes, “Tariffs are leading to fewer opportunities for America’s farmers and ranchers to compete in overseas markets and less income to provide for their families. For U.S. companies importing manufacturing inputs or finished products, these significant costs will result in higher prices, fewer jobs, slower wage growth and reduced investment. We will continue to see the cost of the trade war ripple through the U.S. economy and reverse this year’s economic progress.”
PPAI is working with experts both within and outside the industry to develop tools for promotional products businesses to stay informed of, identify and navigate the tariffs and their effects. Follow PPB Newslink for more information as it becomes available. The Association also encourages industry companies to communicate with supply chain partners, clients and end users about the tariffs and their impact.