Chamber of Commerce President Tom Donohue urged President Trump to back down on proposed tariffs against Chinese imports, saying the effort would do more harm than good for the U.S. economy.
“The administration is right to focus on the negative economic impact of China’s industrial policies and unfair trade practices, but the U.S. Chamber would strongly disagree with a decision to impose sweeping tariffs,” said Donohue, president of the nation’s biggest business lobby. The Chamber has long supported free-trade deals, arguing they benefit the economy overall.
“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,” he warned.
Trump is preparing to impose tariffs on up to $60 billion of Chinese imports, according to a report by Reuters. The tariffs would focus on technology and telecommunications.
White House spokesman Raj Shah said Wednesday in response to the report: “I don’t want to speculate on potential moves when it comes to tariffs. I will say that the president campaigned on, believes in strongly, that American workers and American businesses have been ripped off by foreign trade competitors and partners in the past, and he wants to level the playing field.”
Last week, Trump signed executive orders for tariffs of 25 percent on steel imports and 10 percent on aluminum. They will take effect in one week.
Donohue said the administration has put the nation on a bad course. “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.”
