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PPI Statement on Trump Administration’s New China Tariffs & China’s Announced Retaliation

  • June 15, 2018
  • Cody Tucker

Ed Gerwin, Senior Fellow for Trade and Global Opportunity at the Progressive Policy Institute, released the following statement in response to the Trump Administration’s announcement of new tariffs on Chinese-origin imports and China’s announced retaliation:

“China’s technology mercantilism is a serious threat to America’s economic future that requires a tough and effective American response, but the Trump Administration’s announcement today of $50 billion in duties on Chinese-origin products is not even close to that response.

“Making American businesses and working families pay billions in new trade taxes won’t change China’s bad behavior. Instead, China will respond—as it has already announced—with billions in targeted retaliatory tariffs that will make it much harder for American manufacturers and farmers to export there. It cannot be overstated—these tit-for-tat tariffs will destroy jobs and devastate communities throughout the United States.

“Responding to China’s unfair trade practices and technology theft with “America First” protectionism is a terrible mistake. The Administration’s deeply flawed and poorly focused strategy—based on duties that damage America’s economy and “go-it-alone” trade policies that alienate vital allies—will have large-scale and long-term repercussions.

“Instead of instigating trade wars, the United States should confront China’s unfair trade practices with a targeted, long-term response that enlists our international allies, enforces current trade rules and writes new ones, focuses negotiations on key issues, and ratchets up pressure on China—all while advocating aggressively to keep global markets open. PPI will outline such a strategy in a new report to be released next week.

“Open global markets are manifestly in America’s interest. Given a level playing field, America’s innovative businesses can compete and win anywhere. In trade wars, nearly everyone loses.”

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