Tech Businesses Testify to USTR Against New Tariffs
August 22, 2018
- Author: Caitlin Cline
On Tuesday, CTA’s Vice President of International Trade Sage Chandler and several CTA member companies testified before the U.S. Trade Representative to warn the Trump Administration that tariffs will cost the U.S. money, jobs and our innovative spirit. Here is a recap of what our industry said during the 301 China tariff hearing:
- Win Cramer, CEO of JLab Audio, a California-based wireless earbuds and headphones maker: “The proposed imposition of tariffs on products that make up 80 percent of our business would be catastrophic. We would be forced to lay off 12 percent of employees immediately with more to follow. In my almost 20 years of doing consumer product business, I have not identified another geography that has the sophistication of the Chinese supply chain. From the plastics to the transducers and the electronics, the interconnectivity of the supply chain is unmatched anywhere in the world.”
- Aaron Emigh, Co-founder and CEO of Brilliant, a Californian company that created a smart home control device: “It would cost approximately a million dollars and take many months to relocate manufacturing outside of China. These costs and timelines are not practical for Brilliant, as a small startup company with modest resources. Essentially, the proposed tariffs amount to a punitive tax on selling US technology, manufactured by a US company, to the domestic market.”
- Mark Karnes, VP, Strategic Planning and Business Development of Illinois’ Cedar Electronics, maker of aftermarket products such as CB radios, jump starters and dashcams: “The products that are impacted at the 25 percent tariff level have a dramatic effect on 60 percent of our company’s annual revenue. The dramatic increases in our product costs are making us less competitive with our foreign-based competition and the substantial loss of income from our main product categories of our business will force us to cut jobs in the U.S immediately.”
- Andy Missan, EVP and General Counsel at Fitbit, the Californian maker of fitness trackers and smartwatches: “These tariffs will hurt American workers, stifle innovation and would not advance the administration’s agenda. The 25 percent tariffs would cause Fitbit’s rival to gain considerable market share of wearables. This would cause sensitive health data to be stored in the hands of the Chinese instead of Americans. Ultimately, including smartwatches and fitness trackers in the tariff list will prevent Fitbit’s goal of making Americans healthier.”
China tariffs directly impact the livelihood of U.S. small businesses and the American people– for the U.S. economy to continue to thrive and unemployment stay at record lows the Trump Administration must think twice about imposing tariffs.
We urge you to contact the Trump administration today and share with them how these tariffs negatively impacts your business. You have until Thursday, Sept. 6 to make your voice heard.
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