Bryan Riley, Director of National Taxpayers Union’s Free Trade Initiative, on Monday released the following statement in response to recently announced U.S.-China tariff actions:
“We are pleased that the Administration recognizes the self-destructive damage that would have been inflicted by previously announced tariffs. However, this small step away from embargo-level tariffs on imports for 90 days should be taken in context. At this time, the United States will maintain a historically high 30% tariff on imports from China, while our exports to China will remain subject to 10% tariffs. These are costly barriers.
“The U.S. International Trade Commission found that earlier U.S. tariffs on China were borne ‘almost entirely’ by Americans. The Penn Wharton Tariff Simulator projects that a 30% tariff on all imports from China would cost $639 billion over the next 10 years, the equivalent of nearly $4,800 per household. This tax increase would offset the benefits of any tax cuts resulting from an extension of the Tax Cuts and Jobs Act.
“American exporters will also continue to pay. China’s 10% tariff will be one of the highest in the world faced by U.S. exporters. China’s 10% tariff is twice as high as the tariff faced by U.S. exporters as recently as 2020. Reduced trade resulting from remaining tariffs will come at the expense of agricultural producers and other exporters.
“In the meantime, it will be difficult for American businesses and farmers to plan for the future, given remaining uncertainty regarding the possibility of a snapback to high tariffs.
“We encourage the Administration to reject broad-based tariff actions that harm U.S. consumers and producers and to lock in reciprocal zero-tariff agreements with our other trading partners during this 90-day pause.”