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US speakers not keen on China options
- Latest News
- Friday, 28 June 2024
Ramping up US import tariffs or attempting to decouple the US economy from China will mostly damage US consumers, retailers and exporters, according to supply chain executives.
Former US president Donald Trump has promised to increase tariffs on imported Chinese goods to 60 per cent-plus and to introduce a 10 per cent universal import tariff if he wins the presidential election later this year.
This would add to the tariffs from his first administration and the newer ones introduced by current US president Joe Biden, including on Chinese EVs.
However, Jason Miller, Eli Broad professor in Supply Chain Management at Michigan State University, speaking to the US Freight Buyers’ Club, said authoritative research into US tariffs since 2018 shows no clear economic benefits to the US heartland.
He noted that retaliatory tariffs on US exports have had a clear negative impacts on employment, primarily in agriculture.
Miller argued that any increases of existing tariffs would exacerbate these negative impacts, as retaliation from China and other countries would harm US export industries.
“I see no economic upside to this,” he said. “It will be a tax on consumers. And frankly, I think it's one of the dumbest economic policies I've ever heard of.”
Jessica Dankert, vice president supply chain, Retail Industry Leaders Association (RILA), said “tariffs are taxes on American businesses, consumers and workers”.
She added: “Retailers basically want to see the US government focus on smart trade policy that opens up new markets, reduces tariff and non-tariff barriers and addresses unfair trade practices, without this unnecessary collateral damage to American businesses and consumers.”
