The 45 industry associations representing multiple economic sectors in the United States petitioned the Trump administration for a plan to suspend the tariffs imposed on China, and requested the United States to cooperate with other countries to pressure China to end Chinese restrictions on foreign companies.
These industry organizations stated in their petition letter that the imposition of high tariffs will trigger retaliatory actions and trigger a series of chain reactions that will have a negative impact on the U.S. economy. According to the letter, this will affect U.S. exports of agriculture, goods and services, and Increase the cost of businesses and consumers.
According to The Wall Street Journal, the White House is brewing a series of measures, including levying tariffs on at least 30 billion U.S. dollars worth of imported Chinese products each year, thereby putting pressure on the Chinese government to stop demanding U.S. companies to transfer technology to Chinese companies.
The relevant decisions may be announced this week or next week. It may be too late to stop the U.S. government from increasing tariffs, but these industry associations hope to at least slow down the process. They hope that all U.S. industries affected by tariff measures can take effect before these measures take effect. Evaluate it and make comments.
The closing date was the last Monday letter that the above industry groups requested the U.S. government to provide industry experts with an opportunity to express their views on this matter, including any potential actions that would affect the economy.
These industry groups include associations in the technology, retail, and agriculture and consumer goods industries. There are many well-known companies such as Apple, Alphabet, Google, International Business Machines (IBM), Nike and Wal-Mart.
Dean Garfield, chief executive officer of the Information Technology Industry Council, which arranged the letter, said that the group's focus on tariff measures is because these measures do not solve the problem.
The letter said that in dealing with China, the group's preferred approach is to work with partners whose views are consistent to solve the issues of China’s foreign trade and investment policies that are of common interest; the US government's unilateral tariff collection will only separate the United States from its allies. Come on.
Garfield said that international pressure will sometimes prompt China to act in a manner that discriminates against foreign investors. From Intel Corp. (INTL) to Apple technology companies such as Apple, which manufactures and sells products in China, a large part of its profits comes from Chinese operations.
The U.S. government stated that China’s change was too slow, leading to a deficit of US$375 billion in US merchandise trade with China. Many people in the U.S. industrial community agree with the government’s claim that the Chinese government has used its huge market to force US companies to transfer technology and Obedient to other discriminatory practices. But they want the U.S. government to take a less diametrically opposed approach.
The U.S. government is still considering filing a complaint with the World Trade Organization (WTO) to accuse China of violating trade rules. This will be an attempt by the United States to establish a national coalition. However, it is unclear whether this matter can be promoted; if Before the WTO ratifies the tariff, the case will lose its meaning.
All countries can file a complaint with the WTO headquartered in Geneva. If a country wins the case, it is entitled to collect tariffs unless the losing country changes its illegal practices.
But this process often takes several years to complete, and the Trump administration is looking for faster ways.
After the White House announced a 25% and 10% tariff on imported steel and aluminum products on the grounds of national security, the aforementioned actions against China followed. The industry organization also urged the U.S. government to take multilateral action on the steel and aluminum issues. A consortium forced China to cut its excess metal production capacity. It is widely believed that the China issue is the root cause of the global supply surplus of metals. However, the U.S. government chose to adopt tariff measures.
However, Garfield said that he saw some positive signals in the way the U.S. government dealt with imports of steel and aluminum. Initially, the U.S. government announced that the steel and aluminum tariffs will apply to all countries. Today, it imposes tariff exemptions for Mexico and Canada and considers National exemptions. In addition, the U.S. government has also established a formal process for related companies to obtain tariff exemptions for their products.
The IT Industry Council hopes that the U.S. government will develop a set of similar processes and conduct a tariff assessment to prevent potential economic harm. A research organization in Washington, DC, announced by the Information Technology and Innovation Foundation last Friday. A report said that the collection of tariffs on information technology and telecommunications products will reduce the overall rate of growth of the US economy. The report is tough on China.
Garfield said that he hopes to create a process that will allow the U.S. government to publicize its ideas and allow outsiders to express their opinions.