The Strategist

American business calls to resolve trade dispute with China

06/17/2019 - 12:47

Representatives of 661 US companies and trade associations sent an open letter to US President Donald Trump asking to seek an urgent solution to the problem of trade disputes with China. The business believes that the current confrontation is having a negative impact not only on companies, but also on consumers.

Gage Skidmore
Gage Skidmore
On Thursday evening, participants of the Tariffs Hurt the Heartland public business initiative, represents large American businesses, sent an open collective appeal to US President Donald Trump. They believe that higher tariffs are actually hitting American consumers, who are forced to pay a higher price for goods.

Among the companies that signed the collective appeal are leading retailers Walmart, Target, Kohl`s and JCPenney, luxury goods manufacturer Ralph Lauren, clothing manufacturer Levi`s, high-tech consumer electronics manufacturer iRobot, American divisions of Ikea, Ecco and Solvay, and so on. Among the trade and industry associations are the American Association of Household Appliance Manufacturers, the Association of Computer and Communication Equipment Manufacturers, the Association of Fashion Clothing Manufacturers, regional associations of Applicants' retail and others. In addition to Donald Trump, the letter is intended for US Representative for Trade Robert Lighthizer, Trade Minister Wilbur Ross, the Finance Minister Steven Mnuchin.

The letter’s authors agree that "trading partners must adhere to international trade rules." “We support the administration’s efforts regarding unfair trade practices, including copyright infringement, forced technology transfer and other issues. We want the administration to conclude a reliable agreement with China that meets long-term structural interests, increases US competitiveness at the global level and eliminates tariffs. We believe that such a goal can be achieved without shifting the additional burden on the Americans,” the letter says.

Business representatives express particular concern in connection with the escalation of trade disputes, which is expressed in the exchange of tariffs. “Additional tariffs are significant and long-term negative damage to American business, agriculture, ordinary people and the entire American economy. Such tariffs are not an effective means to change unfair trade practices on the part of China. Tariffs are actually taxes that are paid directly by US companies, not China,” say representatives of American business.

The letter states that additional 25 percent tariffs on imported goods in the amount of $ 300 billion, taking into account previously introduced tariffs, will lead to a loss of 2 million jobs in the United States, increase expenses of the average American household by $ 2 thousand a year and reduce US GDP by 1% .

No reaction of the Donald Trump administration to this letter has yet been reported. Earlier, the world's leading manufacturers of sporting goods, Nike, Adidas and Under Armor, have already warned that an additional 25 percent tariff on imports of footwear from China would lead to "catastrophic" consequences for consumers. In an interview with CNN, Senior Vice President of the National Retail Federation of the United States, David French, said that “President’s target audience is one of the most economically vulnerable in the country. These are the very people who cannot afford to pay several hundred or thousand dollars for consumer goods.”