US business groups urge reducing tariffs on Chinese goods

WASHINGTON: About two dozen US business associations have urged the Biden administration to reduce tariffs on Chinese goods to provide relief to Americans amid rising inflation pressures.

“Tariffs put in place over the last several years continue to disproportionately cause economic harm to US businesses, farmers, workers and families,” the business associations, led by the US-China Business Council, said on Friday in a letter to US Trade Representative Katherine Tai and Treasury Secretary Janet Yellen.

American importers have paid over $110 billion for the so-called “Section 301” tariffs on Chinese goods, of which about $40 billion has been assessed during the Biden Administration, according to the letter.

“These costs, compounded by other inflationary pressures, impose a significant burden on American businesses, farmers and families trying to recover from the effects of the pandemic,” the letter said.

“We agree with Secretary Yellen’s recent comments that tariffs tend to increase domestic prices and raise costs to consumers and businesses due to higher cost inputs and that lowering US and Chinese tariffs could help ease inflation,” the letter said, urging the Biden administration to work toward removal of the Section 301 tariffs on Chinese goods.

“We also request immediate action to significantly broaden the tariff exclusion process to provide additional relief to Americans,” the letter said.

The other 24 business associations that signed the letter include the US Chamber of Commerce, the Business Roundtable, the National Retail Federation, American Farm Bureau Federation and the Semiconductor Industry Association.

Americans for Free Trade, a coalition of more than 150 industry associations that are united in the fight against tariffs, has also recently urged the Biden administration to remove tariffs on imports from China amid continued concerns over inflation.

“As our nation continues to face concerns over rising prices and supply chain obstacles, it is time for Ambassador Tai and other members of the Biden administration to recognise that leaving the previous administration’s failed trade policies in place will only make the problem worse,” Americans for Free Trade spokesperson Jonathan Gold said in a statement earlier this month.

“For the sake of Americans everywhere, it is time to bring the trade war with China to an end,” Gold said.