The US Chamber of Commerce is warning US President Donald Trump against slapping big tariffs on Chinese imports, as the White House weighs whether to punish China for forcing US companies to hand technology to Chinese companies.
“Simply put, tariffs are damaging taxes on American consumers,” chamber president Thomas Donohue said in a statement on Thursday.
Citing reports that the administration is considering tariffs worth US$30 billion a year, Donohue said that such a tax on Chinese imports would wipe out much of the windfall US families are getting from the tax cuts passed in December last year.
Donohue also said that sanctions against China “could lead to a destructive trade war with serious consequences for US economic growth and job creation.”
The administration in August last year launched an investigation into Chinese policies that coerce US companies into transferring technology.
Instead of using tariffs, the administration should “work with the business community to resolve the real and justifiable concerns raised by Chinese trade practices,” Donohue said.
The US government in January imposed taxes on imported solar panels and washing machines, while last week, Trump ordered stiff tariffs on imported steel and aluminum.
Meanwhile, the Trump administration gave no indication that it planned to let up on its pressure on China over trade.
US Secretary of the Treasury Steven Mnuchin is to travel to Argentina next week for meetings of the G20 major industrial nations, which includes traditional economic powers and emerging economies such as China.
Officials said that they planned to make China’s moves away from a market-oriented economy a major topic of discussion at the meetings.
“The trip to the G20 will focus on advancing the Trump administration’s global economic agenda to level the playing field for US companies and workers,” Mnuchin said in a statement.
US Treasury officials said they expected substantial discussion at the meetings on such trade issues as China’s continued subsidizing of over-capacity steel and aluminum.
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