CPA Applauds Senate Letter Urging Biden Administration to Keep Section 301 China Tariffs Intact

WASHINGTON — The Coalition for a Prosperous America (CPA) today applauded a letter led by U.S. Senator Sherrod Brown (D-OH) calling on President Biden and U.S. Trade Representative (USTR) Katherine Tai to maintain the Section 301 China tariffs, which are currently under review by USTR. Brown was joined by U.S. Senators Bob Casey (D-PA), Tammy Baldwin (D-WI), John Fetterman (D-PA), Gary Peters (D-MI), Chuck Schumer (D-NY), and Debbie Stabenow (D-MI).

“Generations of free trade agreements that prioritize multinational corporations have devastated our communities, harmed our economy, and crippled our job market. Keeping the 301 tariffs in place and increasing the tariffs where necessary maintains a critical piece of a pro-worker trade agenda,” wrote the senators. “Any reduction in the 301 tariffs allows China to gain a competitive advantage over hardworking Americans. American workers can compete with anyone if they have a level playing field, and now is not the time to roll back support. We strongly urge you to maintain or increase the 301 tariffs to stand with American workers and hold China accountable.”

A recent economic analysis by CPA Chief Economist Jeff Ferry documents that tariffs have strengthened the U.S. economy and “led to significant reshoring in certain industries.” Further economic analysis from CPA’s Economics Team shows that the Section 301 tariffs imposed in 2018 on Chinese imports reduced U.S. dependence on China. Additionally, a report by the U.S. International Trade Commission (USITC) analyzing the effects of Section 232 and Section 301 tariffs on more than $300 billion of U.S. imports found that the tariffs reduced imports from China and effectively stimulated more U.S. production of the tariffed goods, without impacting consumer prices.

“On behalf of our members that are committed to producing in the U.S. and creating high-paying American jobs, we applaud Senators Brown, Casey, Baldwin, Fetterman, Schumer, Peters and Stabenow for their leadership and in recognizing the importance of keeping the Section 301 China tariffs in place,” said Michael Stumo, CEO of CPA. “There is mounting evidence, including from the USITC, that proves what we have been saying at CPA for more than a decade: tariffs are a critical reshoring tool to stimulate domestic production, avoid future inflation and to reduce dependence on foreign supply chains. We strongly urge the Biden administration to not just maintain the current Section 301 China tariffs, but to increase them.”

Last year, CPA submitted comments to Ambassador Tai in support of keeping the Section 301 China tariffs intact, citing that the “tariffs have led to a large reduction in bilateral trade and a restructuring of trade flows between China and the U.S.” and that “[b]usinesses in several industries cite the tariffs as a driving factor for reshoring manufacturing back to the U.S. Some examples include furniture, plastics, and apparel companies.”