The business community slammed the White House’s announcement Friday that it was hiking tariffs on Chinese goods. Trade associations said the continuing escalation of the U.S.-China trade war was benefiting no one.
“China and the United States continue to needlessly escalate this trade war — with U.S. consumers as collateral damage,” said Jason Oxman, president of the Information Technology Industry Council, which represents high-tech companies. “Both nations need to seriously consider the ramifications of their actions on global economies and markets and stop creating an environment of extreme uncertainty.”
The U.S. Trade Representative’s Office announced late Friday that existing tariffs on $250 billion worth of Chinese goods will go to 30% effective on Oct. 1, up from the current rate of 25%. Planned tariffs on an additional $300 billion worth of goods will be 15%, up from their previously announced level of 10%. The combined $550 billion worth of goods would cover most imports from China.
Business groups said the constant shifts were far too disruptive.
“It’s impossible for businesses to plan for the future in this type of environment. The administration’s approach clearly isn’t working, and the answer isn’t more taxes on American businesses and consumers. Where does this end?” said David French, the National Retail Federation’s vice president of government relations.
That uncertainty was damaging the economy, they added.
“Enough is enough – as evidenced by today’s 623 point drop in the Dow, global markets are reeling on fears of a global recession. And today’s announcement only inflicts more pain on American businesses, workers and families,” said Consumer Tech Association President Gary Shapiro.
Earlier Friday, Trump called on U.S. businesses to immediately find alternative sources for any goods they were importing from China.
“Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA,” Trump tweeted.
Trump’s comments came after Beijing announced that it was enacting additional tariffs of 5% and 10% on $75 billion worth of U.S. goods. It will also place a 25% tariff on American automobiles and a 5% duty on auto parts.
