Trump Administration proposes 25% increase on China tariffs, affecting a range of electronic goods
09 April 2018
US President, Donald Trump, has proposed to further increase the $ 50billion tariff he has already placed on Chinese imported products by 25percent.
The increased tariff comes after an on-going trade ‘battle’ between the two counties, and will affect some 1,300 products, which industry trade group, Information Technology Council (ITIC), has warned will have a negative effect on market opportunities, US manufacturers and small businesses.
According to a report from the BBC, analysts have also “warned of the risk of a full-blown trade war for the global economy and the markets, and believe ongoing behind-the-scenes negotiations between the two giants are crucial.”
Dean Garfield, president and CEO of ITIC, released a statement in March in response to the tariff, urging the US president to reconsider his decision.
“We appreciate that the Trump Administration has listened to industry’s requests for a comment period,” Garfield began. “While we look forward to providing our feedback on the options the administration has outlined, we remain concerned with the administration’s focus on tariffs. These measures could violate international obligations and – more importantly – would punish U.S. consumers, businesses, and workers for China’s action.
“As the administration considers how it will address these serious issues, we encourage it to act consistent with international obligations and in close collaboration with other countries. In entering the WTO process, the administration should simultaneously engage the Chinese in negotiations to reach a settlement. The agreement should ensure that China takes concrete steps to curb its harmful practices and is held accountable for actually doing so.”
The ITIC also constructed a letter to President Trump, which was signed by nearly four dozen business associations. In the letter, the groups outlined how tariffs harm US companies and American workers across the economy, greatly limiting market opportunities in China for US manufacturers, service providers, content creators, and small businesses.
Garfield has now added to his previous statement, commenting: “If history is any indication, these proposed tariffs will not work and will be entirely counterproductive,” he said. “Tariffs penalise US consumers by increasing prices on technology products and will not change China’s behaviour. Instead, the administration should act consistent with international obligations and work with other countries to address systemic issues with China.”
Let’s block ads! (Why?)