Tariffs ‘Wrong Solution to Real Problems,’ Says IA as CTA Starts Petition to White House
Tariffs “remain the wrong solution to real problems” in thwarting allegedly unfair Chinese trade and IP practices, said the Internet Association in comments posted in docket USTR-2018-0026. The comments previewed testimony that Jordan Haas, the group’s director-trade and international policy, gave at hearings Wednesday. Haas testified on the same panel as a Telecommunications Industry Association representative, who said tariffs would “handicap” the U.S. in its 5G “contest” against China (see 1808130051).
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Imposing 25 percent levies on products imported to the U.S. from China under Harmonized Tariff Schedule 8517.62.00 classification would “put a significant drag on U.S. companies ... trying to manufacture connected devices in the United States,” said IA. “It also would put a tax on U.S. consumers seeking to connect to the internet or use internet-enabled technologies.” CTA said it would cost the U.S. economy $1.8 billion a year (see 1808170016).
HTS 8517.62.00 duties “would apply to a massive range of internet-connected consumer devices largely developed by U.S. companies,” including modems and routers to go online, said IA. Consumers use “a wide range of internet-connected devices to manage tasks, watch videos, play games, monitor their health, etc.,” it said. “Virtually all of these products (except for cell phones themselves) will be hit with increased costs.”
The association wants to defeat tariffs on goods imported under HTS 8473.30.11, covering “most of the core inputs to data centers and other U.S. technical infrastructure, including memory modules and other printed circuit board assemblies." PCBAs “are present in all computers, servers, and phones, as well as almost all electronic devices,” it said. “Taxing these components would make it far more difficult to build and operate data centers and other technical facilities in the U.S. and would massively damage U.S. leadership on cloud technologies.”
Tell the White House that tariffs “are a Tax on American Families,” headlined a CTA petition drive Wednesday to fend off the third tranche of Chinese tariffs. "Slapping more trade taxes on products from China doesn’t support hardworking Americans who want more choices at affordable prices. The White House is giving you until September 6 to tell them how this impacts your pocketbook.” That's when final comments are due in the docket.