Trump’s next tariff plan meets opposition
Associated Press
WASHINGTON — PresidentDonald Trump is consideringbroad tariffs on imports from China and an announcement could come as soonas next week.
Industry groups and some lawmakers are scrambling to prevent a new front in a potential trade war that could reverberate across the U.S. economy.
Early indications from the White House have officials braced for tariffs across a wide variety of consumer goods, from apparel to electronics, and even on imported parts for products madein the U.S.
The size and scope remain under debate, but the U.S. Chamber of Commerce is warning that annual tariffs of as much as $60 billion on Chinese goods would be “devastating.”
Mr. Trump’s focus on China could be even more consequential, both at home and abroad, than the recently announced penalty tariffs on steel and aluminum. And amid the staff turmoil at the White House, it’s being read as a sign of rising influence for the administration’s populist economic aides, led by Commerce Secretary Wilbur Ross and adviser Peter Navarro.
On Friday, the National Retail Federation, which recently hosted industry groups to organize opposition to another round of tariffs, convened a conference call to update its members. “They’re all concerned about this,” said David French, vice president for government relations. “Tariffs are a tax on consumers and they’re best used sparinglyas tools.”
Trade experts and economists say the tariffs could lead to rising prices for U.S. consumers and businesses without accomplishing one of the president’s stated goals: reducing last year’s trade imbalanceof $566 billion.
China likely would respond to any tariffs by retaliating with higher import taxes on U.S. goods, among other possible restrictions.
“They signaled that they will aim at things that affect the United States politically as well as economically,” said Claude Barfield, a scholar at the conservative American Enterprise Institute and former consultant with the U.S. trade representative.
“The farmer in Kansas or Iowa could feel it,” he said. “U.S. high tech companies could feel it because the supply chains for iPhones go through China.”
Lawmakers on Capitol Hill, who have largely been shut out of administration deliberations, fear tariffs would stunt economic benefits in the U.S. that could be stemming from the GOP tax cuts.