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CPA Urges USTR to End Exemptions to China 301 Tariffs

December 10, 2020

CPA sent the following letter to Ambassador Lighthizer asking that the 301 tariff exemptions requested by importers and multinationals last year be allowed to expire on December 31, rather than be renewed.

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Dear Ambassador Lighthizer,

We write today to commend you on your thoughtful approach to safeguarding and supporting US manufacturing. The Section 301 China tariffs have proven a vital and useful tool in addressing the Chinese Communist Party and its countless illegal acts relating to stealing and acquiring US intellectual property. That is why we ask you to end – and not renew - the current Section 301 exclusions that are set to expire at the end of the year.

These exclusions were granted by USTR in response to petitions from interest groups and businesses who said such exclusions were necessary to avoid widespread economic harm. We know now that this alarm was unfounded. In fact, these exclusions were nothing more than a payday for Chinese manufacturing and those groups who rely on subsidized-and sometimes even made-by-slave-labor products. CPA has documented how even in a high-profile sector like automotive, where warnings were dire and yet exclusions denied, all of the threatened harm never came to pass.[1] The 301 tariffs against China have provided a windfall of over $70 billion to the U.S. Treasury, which is almost one-third of our annual corporate tax receipts.  Virtually all of that new revenue has been come from importer’s margins, not the American consumer.

The exclusions in question provided ample time for supply chains to move out of China. Any bemoaning from the import lobby that relies on China should have looked to home first. There are plenty of Americans and American businesses that can fulfill their supply chain needs. Any further extension is simply rewarding the Chinese Communist Party and jeopardizing our national security.

The 301 tariffs encourage American businesses to hire American and to grow domestic output. They provide important protection and serve as a tool to ensure hard working Americans are protected from state subsidized and slave labor-made products from flooding our market. The China 301 tariffs allows for the creation of the next great PPE or medical supply manufacturer in America. In fact, we have many American companies producing PPE and other vital medical supplies and equipment right now. To ensure these American operations prosper and succeed – we ask that you allow these Section 301 exclusions to expire.

Thank you,

Daniel DiMicco, Chairman and Michael Stumo, CEO


Letter to Government

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