June 15, 2018

US Chamber’s Donohue statement on new tariffs against China

US Chamber of Commerce President and CEO Thomas J. Donohue issued the following statement:

“Imposing tariffs places the cost of China’s unfair trade practices squarely on the shoulders of American consumers, manufacturers, farmers, and ranchers. This is not the right approach.”

The US Chamber has vocally opposed using tariffs – and promoted working with allies – as a way to address China’s trade and investment policies and practices:

In his 2018 State of American Business address, Donohue discussed the need to work with US allies “to forge a common response to China’s state capitalism.”

In March, the US Chamber led the business community in issuing a formal statement opposing the potential use of tariffs against China – at the time rumored to be roughly $30 billion. A coalition of 45 business organizations led by the US Chamber also sent a letter to the administration highlighting the harmful effects of tariffs.

During the US Chamber’s 9th China Business Conference in May, Donohue delivered remarks welcoming United States Trade Representative Ambassador Robert Lighthizer to the Conference. Urging against the use of tariffs, Donohue said, “We need the administration instead to work collectively with US industry, Congress, and our trading partners to adequately address China’s unfair trade practices in ways that maximize the likelihood of real, enforceable solutions – and without inflicting collateral damage on businesses and consumers.”

On May 11, the US Chamber submitted comments to USTR regarding its Section 301 investigation into China’s policies and practices. The US Chamber submission recommends four systemic reforms for China to undertake that go beyond limited actions to gradually open select industries.

Donohue then traveled to China where he led the 10th U.S.-China CEO Dialogue. Upon returning, he discussed the path forward for the U.S.-China relationship on CNBC’s “Squawk Box” as well as in his weekly commentary.

On May 29, Donohue commented on the administration’s decision to move forward with $50 billion in tariffs against China. He said that the new tariffs are “in fact a tax on American consumers and will undermine the competitiveness of American companies.”

In a May 31 memo to the US Chamber’s Board of Directors, Donohue sounded the alarm about the potential negative effects the administration’s current approach to trade could have on US consumers, businesses, and economic growth. Donohue focused his June 11 weekly commentary on the same topic.

The US Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations. Its International Affairs division includes more than 80 regional and policy experts and 25 country- and region-specific business councils and initiatives. The US Chamber also works closely with 117 American Chambers of Commerce abroad.

Source: USCC

May 29, 2018

USCC’s Donohue on administration’s tariffs decision against China

US Chamber of Commerce President and CEO Thomas J. Donohue issued the following statement regarding the administration’s decision to impose USD 50 billion of tariffs on Chinese imports:

“The US Chamber supports the administration’s ongoing efforts to deal with China’s unfair trade practices and policies. However, we continue to believe that the use of tariffs puts all the burden on American companies and consumers. The administration’s decision to impose tariffs on USD 50 billion worth of Chinese products is in fact a tax on American consumers and will undermine the competitiveness of American companies, just as the administration’s steel tariffs have dramatically raised prices on steel in the United States.”

Donohue was recently interviewed on CNBC’s “Squawk Box” where he discussed the US-China economic relationship and reiterated the US Chamber’s position for opening China’s markets through systemic reforms rather than imposing tariffs.

Source: USCC