Today, USTR officially imposed a 25% tariff on $200 billion worth of imports into the United States from China. This is an increase from the current tariff of 10% on these goods. Additionally, the President has threatened to expand this 25% tariff to include all incoming goods imported from China subject to the outcome of continued negotiations with the Chinese. Negotiations between the U.S. and China appear to have ended for the time being, so the tariffs may remain in place for some time.
So far, the imposition tariffs have cost the U.S. economy more than $20 billion and this current escalation threatens to dramatically increase that amount. Many PESA members are facing significant increases in their production costs and disruptions to their supply chains, which is threatening to stifle their ability to grow and remain competitive. PESA fears that this new round of tariffs could threaten economic growth and job creation in our industry. While PESA supports aggressive actions to curb unfair trade actions taken by China, PESA does not believe that tariffs are the most productive way to achieve this goal.
Earlier this year, PESA co-hosted a town hall event in Houston to highlight the negative effects of tariffs on PESA members and how the worldwide competitiveness of many PESA companies was being threatened by these actions. PESA will continue to monitor the situation and work with PESA Member Companies in order to minimize the negative economic effects of the new round of tariffs as much as possible.
For more information about these tariffs, contact PESA Vice President Government Affairs Tim Tarpley.
February 20, 2019: Spending Bill Includes Directives to USTR on the Tariffs Exclusion Process
February 20, 2019: PESA Co-Hosts “Tariffs Hurt the Heartland” Town Hall in Houston