CPA Statement on Trump Phase One Deal with China

CPA members see tariffs working, want them made permanent

Washington. The Coalition for a Prosperous America (CPA), which represents producers throughout the nation’s heartland, is pleased that President Trump’s Phase One deal with China appears to be keeping the current tariffs in place and adding some tariffs to additional imports on December 15. 

“The tariffs are working, and have brought Beijing to the table,” said CPA Chair Dan DiMicco. “President Trump made the right decision to continue them. It would be unthinkable to remove the tariffs now, when China’s manufacturing sector is feeling the impact. Halting or delaying new tariffs would mean the United States giving up hard-earned leverage against China’s massive, state-sponsored subsidies and other violations of world trade laws.”

CPA and its members have strongly supported the tariffs. As federal data shows, the tariffs have helped to reduce the U.S. trade deficit with China. And U.S. manufacturers have made investments in capacity and equipment—and hired new workers—on the assumption of continued tariff relief.

CPA believes that the tariffs on China should be increased to 25 percent across the board, and made permanent. CPA research has demonstrated that such tariff action could boost US GDP by $125 billion over five years, with 721,000 new jobs created.

Michael Stumo, CEO of the CPA, said, “Yielding to Beijing, and accepting a convenient agreement, would be a frightening mistake. Beijing is always looking for signs of weakness. The president must insist on a tough line, and continue all tariffs in order to address China’s massive subsidies, theft of intellectual property, forced technology transfers, and restrictions on US exports. China’s behavior remains unacceptable, and only a permanent, across-the-board tariff will make a dent in Beijing’s predatory behavior.”


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