US companies voice opposition to potential tariffs

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Europe

01:48

A week-long session of public hearings, held by the Office of the US Trade Representatives (USTR), has been replete with dissenting voices from American companies who worry that the tariffs proposed by President Donald Trump will ultimately end up costing Americans more.

Over 350 companies, grouped into 46 panels, are taking part in the hearings from August 20 to 24 and on August 27, roughly a month before the proposed additional tariffs of 10 percent on 200 billion US dollars' worth Chinese goods are expected to go into effect.

These American companies and businessmen are from a wide range of industries ranging from clothing to marine and auto products, whose concerns will have an impact on the final decision.

Gary Shapiro, president and the CEO of Consumer Technology Association speaks during the Electronics Show (CES) on Jan. 9, 2018. /VCG Photo

The Consumer Technology Association (CTA), for example, represents US manufacturers, distributors, developers and retailers. Sage Chandler, vice president of International Trade of the CTA is attending the testimony on Tuesday.

CTA members are concerned about the impact the tariffs will have on their supply chains as, even though these companies operate globally, China is a crucial supplier.

The members have identified 302 items with a combined value of over 109 billion US dollars, on which a 10 percent tariff would be significantly detrimental, according to the agency’s submission to the USTR.

Lionshead Specialty Tire and Wheel said its president, Tim Miller, will testify against these tariffs.

The company said in its submission that some of its products - namely wheels, and tires - must be imported from China as not enough of the necessary parts are made in the US or elsewhere in the supply chain.

Chinese tire-maker, Double-Coin. /VCG Photo

“The proposed Section 301 duties would have a harmful impact on the domestic trailer supply industry that will disproportionately borne by small and medium-sized businesses as well as consumers,” said their submission.

The Bicycle Product Suppliers Association (BPSA), a California-based bicycle association, testified about the effects of the tariff on the US bicycle industry on Monday. It said that a 10 percent tariff increase would have an affect on the market for complete bicycles and bicycle frames in the US.

Huffy Bikes, a famous bicycle brand in the US, also expressed concerns about the potential tariff as the company sells about four million Chinese-made bikes a year.

“There is no other country in Asia or Europe that can provide the volume Huffy requires as China is the largest bicycle producer in the world,” said Bill Smith, the CEO of the company.

The potential 200 billion US dollar list targets a wide range of consumer goods, including plastics, bicycles, car tires, furniture, lighting and wood products, and would bring long-term negative consequences to the US economy as China's ability to deliver goods at a low cost means it remains an indispensable supplier in the global value chain.