By SEMA Washington, D.C., Staff
The U.S. gross domestic product will be reduced by nearly $3 billion and 134,000 American jobs will be lost if the United States imposes 25% tariffs on $50 billion worth of Chinese imports, according to a study released by the National Retail Federation and the Consumer Technology Association. For each job gained, four will be lost according to the report.
In March, the U.S. Trade Representative (USTR) issued a finding that the Chinese government is engaged in unfair actions, policies and practices covering intellectual property rights and technology transfer that negatively impacts U.S. companies and American economic interests. The USTR report contends that these practices have resulted in a diversion of U.S. jobs to China and an increase in the trade deficit.
President Trump directed the USTR to develop a list of imported Chinese products subject to 25% tariffs if U.S./Chinese negotiators are unable to resolve the dispute. The USTR has published a list of 1,300 products that could be subject to tariffs as soon as June. China has threatened retaliatory tariffs.
SEMA has urged the president and lawmakers to use trade laws strategically so that unfair trade practices are addressed without harming U.S. businesses. SEMA has joined forces with other U.S. manufacturers and business organizations to support actions using legal mechanisms that won’t impose unnecessary harm on companies and consumers.
For more information and copies of the referenced studies, contact Stuart Gosswein at stuartg@sema.org.