US firms warn next China tariffs to cost Americans from cradle to grave

WASHINGTON: A broad cross-section of US businesses has a message for the Trump administration: new tariffs on US$200 billion of Chinese imports will force Americans to pay more for items they use throughout their daily lives, from cradles to coffins.

Six days of public hearings on the proposed duties of up to 25 per cent will start on Monday in Washington as part of President Donald Trump’s and the US Trade Representative’s (USTR) efforts to pressure Beijing for sweeping changes to its trade and economic policies.

Unlike previous rounds of US tariffs, which sought to shield consumers by targeting Chinese industrial machinery, electronic components and other intermediate goods, thousands of consumer products could be directly hit with tariffs by late September.

The US$200 billion list targets Chinese seafood, furniture and lighting products, tires, chemicals, plastics, bicycles and car seats for babies.

“USTR’s proposed tariffs on an additional US$200 billion of Chinese imports dramatically expands the harm to American consumers, workers, businesses, and the economy,” the US Chamber of Commerce said in written testimony for the hearing.

The top US business lobbying group said the Trump administration lacks a “coherent strategy” to address China’s theft of intellectual property and other harmful trade practices and called for “serious discussions” with Beijing.

Mid-level Trump administration officials and their Chinese counterparts are expected to meet later this week in Washington to discuss their trade dispute. But it is unclear whether the talks will have any effect on the implementation of US tariffs and retaliation by China.

In more than 1,400 written comments submitted to US TR that will be echoed in the hearings, most businesses argued that the tariffs will cause harm and higher costs for products ranging from Halloween costumes and Christmas lights to nuclear fuel inputs, while a small number praised them or asked that they be extended to other products.

Graco Children’s Products Inc (Graco), a unit of Newell Brands Inc, said tariffs “will have a direct negative impact on our company, American parents and most importantly the safety of American children.”

The company said higher prices may prompt more parents to buy car seats, swings and portable play yards on the second-hand market.

“The proposed tariffs may force parents to use unsafe sleeping environments or let children dangerously cosleep with parents,” Graco wrote. The tariff “only causes a children safety issue; it will not convince China to change its policies.” —