In­dus­try Back­lash

Af­ter im­pos­ing a 25­per­cent tar­iff on $50 bil­lion worth of Chi­nese goods ear­lier this sum­mer, the Office of the U.S. Trade Rep­re­sen­ta­tive (USTR) is now con­sid­er­ing tax­ing another group of Chi­nese prod­ucts worth four times as much at the same rate. Th­ese p

Beijing Review - - BUSINESS -

Pre­vi­ously, we no­ti­fied the ad­min­is­tra­tion that the tar­iffs on List 2 sub­stances would hurt our in­dus­try’s abil­ity to do busi­ness in the United States. We cau­tioned that they would jeop­ar­dize nearly half of the $194 bil­lion in an­nounced in­vest­ments and chem­i­cals man­u­fac­tur­ing that have been an­nounced over the past decade, and we ex­plained that the cost in the United States will go up not just for our mem­ber com­pa­nies but also the down­stream in­dus­tries that buy U.s.-made chem­i­cals, in­clud­ing farm­ers and man­u­fac­tur­ers.

If tar­iffs on the $2.2 bil­lion in chem­i­cals and plas­tics im­ports that ap­peared on List 2 would weaken the com­pet­i­tive­ness of the U.S. chem­i­cals in­dus­try, then the $16.4 bil­lion in tar­iffs on ad­di­tional prod­ucts of chem­istry in List 3 would have a po­ten­tially ir­repara­ble im­pact on our in­dus­try’s eco­nomic struc­ture and sup­ply chain.

Man­u­fac­tur­ing sup­ply chains do not ex­ist in a vac­uum but move with the ebb and flow of mar­ket forces. They are com­plex and in­tri­cate and rely on in­ter­con­nected net­works and chan­nels that work to­gether as one to bring fin­ished prod­ucts to mar­ket. That is what makes sup­ply chains vul­ner­a­ble to the dis­rup­tive ef­fects that tar­iff and non­tar­iff bar­ri­ers to trade can have in the global mar­ket­place. Sup­ply chains are not plug and play. They can­not easily be re­con­fig­ured to meet the whims of U.S. trade pol­icy. Forc­ing com­pa­nies to re­con­fig­ure their sup­ply chains would threaten the vi­a­bil­ity of their busi­nesses.

We re­it­er­ate in the strong­est pos­si­ble terms that the best way to pre­serve the

The U.S. In­ter­na­tional Trade Com­mis­sion in Washington, D.C., where pub­lic hear­ings re­gard­ing pro­posed tar­iffs on ap­prox­i­mately $200 bil­lion worth of Chi­nese prod­ucts were held on the work­ing days be­tween Au­gust 20 and 27

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