The Honorable Orrin Hatch | The Honorable Ron Wyden |
Chairman | Ranking Member |
Committee on Finance | Committee on Finance |
United States Senate | United States Senate |
Washington, DC 20510 | Washington, DC 20510
|
Dear Chairman Hatch and Ranking Member Wyden:
National Taxpayers Union (NTU) is concerned that tariffs on steel and aluminum under Section 232 of the Trade Expansion Act of 1962 are misguided. We are also concerned that imposing tariffs under the guise of national security sets a dangerous precedent that could destabilize the rules-based system of international commerce.
The 25-percent tariff of steel and 10-percent tariff on aluminum threatens industries across the American economy. From car manufacturers to beer producers, increased prices will mean a loss in profitability and the destruction of as many as 470,000 American jobs.
The reasoning provided by the Commerce Department has been that steel and aluminum are necessary to national security. In fact, steel and aluminum tariffs harm U.S. national security by driving up costs for American industries and undermining relations with our allies.
One of the industries harmed by steel and aluminum tariffs, the automobile industry, is itself the subject of a 232 investigation. Since 2010, Americans have paid a cumulative $2,046 per household in import taxes. A potential new 25 percent tax on imported vehicles and parts could cost an average of $500 per U.S. household each year, based on 2017 import volume.
In light of the interest that we have in the topic of tariffs and their effect on American taxpayers, we applaud the willingness of your committee to hear the ideas of citizens on such an important and pivotal issue. We have included our recent commentary and analysis for the committee, as well as an overview of the work that we have done for the past year on the topic of tariffs, including an open letter from more than 1,100 economists who wrote: “Americans face a host of new protectionist activity, including threats to withdraw from trade agreements, misguided calls for new tariffs in response to trade imbalances, and the imposition of tariffs on washing machines, solar components, and even steel and aluminum used by U.S. manufacturers… we are convinced that increased protective duties would be a mistake. A tariff war does not furnish good soil for the growth of world peace.”
As you stand with your colleagues to consider the issue of trade, please know NTU is prepared to offer whatever counsel, input and direction we can to create a responsible 21st-century trade policy.
Sincerely,
Bryan Riley
Director, NTU Free Trade Initiative