CTA, NRF, SIA Ask to Appear at USTR Hearing to Oppose New Round of Tariffs
CTA, the National Retail Federation and Semiconductor Industry Association asked the Office of the U.S. Trade Representative for approval to testify at a July 24 hearing to oppose 25 percent Trade Action Section 301 tariffs on a second list of 284 lines of Chinese-sourced products newly proposed for the higher duties (see 1806150030), they commented in docket USTR-2018-0018. The Retail Industry Leaders Association (RILA), which represents Best Buy, Walmart and other big-box retailers, also asked to testify in opposition to the tariffs.
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CTA members “have so far identified” at least 22 Harmonized Tariffs Schedule (HTS) codes on the new list covering $6.6 billion worth of products they imported from China in 2017, said Sage Chandler, CTA vice president-international trade. “Members have reported concerns on the impact of tariffs on their supply chains and their ability to deliver the quality products desired by U.S. consumers.”
Members also “remain concerned” the new tariffs will “put their businesses at a disadvantage relative to their competitors in other nations who can continue importing critical components from China at a fraction of the cost,” said Chandler. Members worry the tariffs will “raise the cost of living for most Americans, particularly given the enhanced risk of the application of retaliatory tariffs by China,” she said.
David French, NRF senior vice president-government relations, wants to testify that tariffs on the “several HTS codes” of products on the new list “will directly impact retailers and their consumers,” he said. “We are also concerned about the ongoing escalation of tariffs and the President’s call for additional tariffs if China retaliates,” said French. “Retailers cannot simply change their supply chains overnight to find alternate sources of products, if those sources even exist.”
Semiconductors are “the bedrock of the modern American economy, powering virtually everything digital from cellphones and cars to supercomputers and military systems,” said David Isaacs, SIA vice president-government affairs. Chinese companies “export almost no semiconductors to the U.S. market,” so tariffs on them would hurt American businesses, not punish the Chinese for allegedly unfair trade practices, said Isaacs.
Most U.S. semiconductor imports from China "are semiconductors designed and manufactured in the United States, and then shipped to China for the final stage of semiconductor fabrication,” accounting for only 10-15 percent “of the value of the final product,” he said. “Relocating this step in the supply chain” to countries of origin other than China “would be costly, time consuming, and make our own semiconductor companies less competitive,” he said.
RILA supports “holding U.S. trading partners accountable” for allegedly unfair trade practices, but worries “about the negative impact” the proposed tariffs could have “on America’s working families,” said Hun Quach, vice president-international trade. “Punishing American working families with higher prices on household basics like clothing, shoes, electronics, and home goods is not a solution.”
Written comments are due July 23, post-hearing rebuttal comments July 31.