“A move by President Joe Biden to remove tariffs on Chinese consumer goods will do little to dent inflation, economists say, and risks further hamstringing Democratic candidates in political battlegrounds.” — Bloomberg (July 5, 2022)
WASHINGTON — The Coalition for a Prosperous America (CPA) today released a statement urging President Biden to not implement a “tariff holiday” and broadly gut tariffs on China, a move that economists confirmed would do nothing to address inflation. Instead, it would once again allow the Chinese Communist Party (CCP) to flood the U.S. market with a tsunami of government subsidized goods—including imports like solar panels made with Uyghur forced labor. The Biden administration has also not received a single commitment to lower prices from Chinese importers that have been lobbying to gut the China tariffs.
CPA’s Economics Team has outlined why tariffs are not impacting inflation and documented why gutting tariffs “would cost the U.S. hundreds of thousands of jobs very quickly, it would lead to a sizeable increase in import penetration in many industries, it would embolden and empower China to further decimate U.S. industries ranging from microchips to solar panels to steel, machinery and automobiles…and it would have zero impact on inflation.”
“If the Biden administration is serious about boosting American manufacturing and pursuing a pro-worker trade policy, then they will not remove tariffs on China that are protecting American workers and industries — including my company Atlas Tool Works,” said Zach Mottl, Chairman of CPA. “Not only has China violated the Phase One deal, but they also continue to take action that threatens U.S. national security and American workers. The Biden administration should rethink any planned tariff cutting, which would be a reward to the CCP and a direct assault on the men and women who are committed to making things right here in our nation.”