trending Market Intelligence /marketintelligence/en/news-insights/trending/vchustwmejyw4rw_grow6g2 content esgSubNav
In This List

US Chamber of Commerce warns China tariffs could hurt consumers, spark trade war

Blog

Using ESG Analysis to Support a Sustainable Future

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook


US Chamber of Commerce warns China tariffs could hurt consumers, spark trade war

The head of the U.S. Chamber of Commerce urged President Donald Trump's administration to forgo a reported plan to potentially impose $30 billion in tariffs on imports from China, warning the move would harm U.S. consumers and trigger a "destructive" trade war that slows U.S. growth.

"Simply put, tariffs are damaging taxes on American consumers. Tariffs of $30 billion a year would wipe out over a third of the savings American families received from the doubling of the standard deduction in tax reform. If the tariffs reach $60 billion, which has been rumored, the impact would be even more devastating," said U.S. Chamber President and CEO Thomas J. Donohue in a March 15 statement.

The tariffs, reportedly to be announced over the next two weeks, follow an administration finding that U.S. companies operating in China were required to hand over their technology to Beijing as a cost of doing business, in violation of U.S. intellectual property laws. The tariffs would be part of efforts to substantially reduce the U.S. trade deficit with China which totaled $375.2 billion in 2017.

Donahue said that while the administration was right to focus on the "negative" economic impact of China's industrial policies and "unfair" trade practices, the U.S. Chamber "would strongly disagree with a decision to impose sweeping tariffs."

"As we're starting to see, tariffs could lead to a destructive trade war with serious consequences for U.S. economic growth and job creation. The livelihood of America's consumers, businesses, farmers, and ranchers are at risk if the administration proceeds with this plan," Donohue said.

But White House trade adviser Peter Navarro said the tariffs will not necessarily lead to a trade war. "We can obviously do it in a way that can be good for the American people ... in a way that is peaceful and will improve and strengthen the trading system," he told CNBC.

China warned tariffs would "seriously impact" global trade after Trump confirmed orders to impose 25% tariffs on steel and 10% on aluminum. It has vowed to protect its interests.

"China has sought to remedy the U.S. preoccupation with the trade gap and resolve their differences through negotiations ... and that still remains the case," the state-run China Daily newspaper said in a March 15 editorial.

"However, that does not mean that it will allow itself to be the target for the arrows of adversity with which the U.S. wants to put it at a disadvantage ... China has ample arrows of its own with which to fight back," the editorial added.