CPA Applauds Ways and Means Republican Chairs’ Support of Section 301 China Tariffs

WASHINGTON — The Coalition for a Prosperous America (CPA) today applauded a letter from House Ways and Means Committee Chairman Jason Smith (MO-08) and Trade Subcommittee Chairman Adrian Smith (NE-03) highlighting the importance of the Section 301 tariffs on China in protecting American workers, manufacturers, and small businesses from China’s egregious unfair trade practices.

“On behalf of our members that are committed to producing in the U.S. and creating high-paying American jobs, we commend Chairman Jason Smith and Chairman Adrian Smith for their leadership in recognizing the importance of keeping the Section 301 China tariffs in place,” said Michael Stumo, CEO of CPA. “There continues to be ample and mounting evidence, including from the USITC, that proves the effectiveness of using tariffs as an instrumental and critical reshoring tool to stimulate domestic production, avoid future inflation, and to reduce funding of China’s military capabilities. We strongly urge the Biden administration to not just maintain the current Section 301 China tariffs, but to increase them.”

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.

The Section 301 China tariffs, which were imposed by former President Trump, are currently under review by the Biden administration. The Trade Act of 1974 requires trade enforcement actions to be reviewed every four years. The Biden administration initiated that review in May 2022, nearly four years after the Trump Section 301 tariffs against China were put into place. Two years later, the Biden Administration has yet to complete the review, leaving uncertain the future of the United States’ ability to combat China’s unfair trade practices.

Last week, CPA 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).

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.”

RELATED