The threat of the coronavirus outbreak has trade groups pressuring President Trump to roll back the tariffs he has imposed on China as the best way to protect the economy.
Republican Sen. Steve Daines of Montana, a member of the Senate Finance Committee, echoed the call, saying a tariff rollback would “help stabilize markets” in turmoil due to the virus. He vowed Monday to lobby fellow lawmakers and the White House.
“80% of kids shoes are made in China — U.S. families cannot afford even higher tariffs on shoes! Please — NO new shoe tariffs!” the Footwear Distributors and Retailers of America tweeted on Tuesday. Matt Priest, president of the shoe trade association, claimed in a letter to White House economic adviser Larry Kudlow that the administration’s tariffs have cost the public $12 billion in the last year. The letter also endorsed the administration’s suggestion of a payroll tax holiday as a response to the virus.
Andy Polk, the association’s spokesman, said the requested tariff rollback covered all imports but cited the Chinese ones as a key concern. “With limited economic tools, it would be the fastest and biggest way to pump confidence and funds back into the economy, even if temporary,” he told the Washington Examiner.
The Trump administration has 7.5% tariffs on $120 billion worth of Chinese goods and 25% tariffs on another $250 billion worth of products despite reaching the “phase one” of a trade deal with China in December. The administration has said maintaining the tariffs is important to ensure that Beijing abides by the terms of the deal. “We’re not considering that at the moment,” Treasury Secretary Steven Mnuchin said in a House Ways and Means Committee hearing last week when asked about the possibility of lifting tariffs. However, pressure has steadily built since then.
The National Association of Manufacturers released a list of recommendations on Monday to deal with the outbreak that included creating a “targeted list of products for which Section 301 tariffs and retaliatory tariffs can be suspended or removed.” Section 301 refers to the section of the Trade Act the White House has invoked to place tariffs on Chinese goods.
Markets have been in turmoil due to the virus’s rapid spread, which has disrupted shipping, hobbled air travel, and put supply chains in disarray. The Dow Jones, S&P 500, and Nasdaq composite all plunged more than 7% on Monday.
A top official at a major agricultural trade association told the Washington Examiner the organization is lobbying for tariff rollbacks as a response to the virus rather than getting more federal assistance from the administration. Trump last month promised to provide assistance if necessary, but the administration has since indicated any farm payments aren’t coming, the official said. The association’s members would rather return to normal trade, anyway, the official said.
