Policy > Issues

Tariffs Are a Tax

Tell the White House to Remove China Tariffs

The U.S. economy lost $7.8 billion in 2018 due to the administration's tariffs on $250 billion worth of Chinese imports.

Even though the president announced in February the U.S. will not raise tariffs on Chinese goods, America’s tech industry is still paying $1 billion more a month in tariffs compared to last year.

Tariffs are a tax — they hurt America's businesses' global competitiveness and raise prices on consumers. Tell the White House it’s time to roll back the tariffs for good.
 

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Overview

America’s trade relationship with China significantly impacts CTA’s members who rely on the global supply chain — including China — to conduct business. But since July 2018, the Trump administration has imposed tariffs on $250 billion worth of Chinese imports. And since Oct. 2018, U.S. businesses have paid over $6 billion in tariffs — the highest monthly amount in our history — and the U.S. technology industry is on track to pay $1 billion a month in tariffs.

We conducted a poll among our membership and found tariffs would disproportionately impact 79 percent of small business members. Of those small businesses, four out of five say they either cannot switch their sourcing from China to another country or cannot do so without a costly disruption to their business. Of those CTA members that could change sourcing, the majority will not consider shifts to the U.S.

Economic Impact

Tariffs will negatively impact on the economy and workers. U.S. tariffs on $50 billion in imports — plus Chinese retaliation on $50 billion worth of U.S. goods — will reduce U.S. gross domestic product (GDP) by nearly $3 billion and destroy 134,000 American jobs, according to study released by CTA and the National Retail Federation. Four jobs will be lost for every job gained.

America’s lead in cloud computing and 5G are at stake. Trade taxes on network equipment and other vital components used in 5G technology will raise the cost of U.S networking infrastructure by hundreds of millions of dollars and reduce the incentives to improve it. Rolling out the next generation of wireless networks, which runs 100 times faster than the current 4G, needs fewer obstacles, not more.

And, worst of all, the global economy is at stake if both the U.S. and Chinese economies decline at the same time. The International Monetary Fund lowered its projection for 2019 global economic growth due to trade tensions.