CPA Supports White House Proposal for Further Tariffs on China

June 19, 2018

Washington. The Trump administration has announced a potential round of further tariff measures against another $200 billion of Chinese imports in response to Beijing’s intransigence on hacking and intellectual property theft. The Coalition for a Prosperous America (CPA) supports the administration’s decision in light of China's decision to retaliate and double down rather than change its behavior.

Dan DiMicco, chairman of the CPA, said, “President Trump recently imposed tariffs on China following a thorough investigation on hacking and technology theft. This is a logical and justified use of US trade law. But what was Beijing’s reaction? Instead of cleaning up its act, China remains a bully—and wants to retaliate against US producers. The hard truth is that Beijing is refusing to change its predatory economic behavior as it penalizes fairly traded goods from the US. Further tariffs are a necessary option to address Beijing’s strategy of growth through the sale of stolen technology to US consumers.”

Last night, President Trump directed US Trade Representative Robert Lighthizer to identify $200 billion worth of Chinese goods for additional 10 percent tariffs. The new tariffs would be imposed if Beijing retaliates on US products rather than address the intellectual property theft and technology transfer policies highlighted in a recent Section 301 trade investigation.

Michael Stumo, CEO of the CPA, said, “Beijing wants to keep the status quo—where the United States ran a $387 billion trade deficit with China last year and is ceding key technologies. This is simply unsustainable, however, and the president is right to act now to protect the US economy and the industries of the future. Targeted tariffs against China, if necessary, are the appropriate recourse for downstream industries affected by China’s actions and for any continued dumping of product in the US market. The administration should focus additional and imaginative efforts on programs to support agricultural producers including reinstating country of origin labeling for meat products."

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