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Citing Tariffs, Lawmakers Express Concern Over Consumer Technology Prices June 1, 2018
Washington –Congressmen Erik Paulsen (MN-03) and Suzan DelBene (WA-01) are leading a bipartisan group of lawmakers this week to voice concerns over the impact of proposed tariffs on consumer electronic prices paid by U.S. consumers. In a letter to U.S. Trade Representative Robert Lighthizer, the lawmakers cite their concerns that the Administration’s tariff proposal would hike prices on a range of consumer technology products. The letter was signed by 34 members of both parties. “It has been widely reported that actual or potential tariffs are already causing pain for U.S. agricultural exports, including pork, soybeans, corn and beef. Furthermore, we are equally worried that the imposition of these tariffs on everyday consumer products would amount to a de facto tax increase that disproportionately affects middle class and low-income American consumers,”the lawmakers wrote. The lawmakers cited specific products that may cost more for U.S. consumers as a result of the tariffs. “According to a recent study done for the Consumer Technology Association and the National Retail Federation, increasing current U.S. tariffs on televisions by 25% would cost U.S. consumers $711 million in the first year alone; for ink and cartridges, U.S. consumers would pay an additional $529 million; and costs would also significantly increase for U.S. consumers of computer monitors (by $172 million) and batteries (by $24 million).” “We believe you have many tools at your disposal to achieve our shared objections. In particular, we urge you to work as closely as possible with our allies who share our concerns about China’s unfair trade practices, and have begun to address these practices more directly thanks to U.S. leadership. We should avoid creating disincentives for our allies to join us in taking strong action, which higher tariffs could do. The most effective approach is for the international, not the United States alone, to stand up to China’s unfair trade practices,”the lawmakers concluded. A signed copy of theletter is available here. The full text is available below.
May 30, 2018
The Honorable Robert E. Lighthizer United States Trade Representative Office of the United States Trade Representative 600 17th Street NW Washington, DC 20508
Dear Ambassador Lighthizer:
It is clear that China's policies regarding intellectual property and forced technology transfers have been a source of grave concern for many years, and it is time for a strong response from the United States.
The challenge, of course, is how best to engage with China in order to secure desired changes in the policies. We do not believe that the current cycle of threatened tariffs between the United States and China will secure optimal results, and are concerned that there will be significant unintended adverse consequences to the United States. Indeed, even the mere threat of tariffs can diminish U.S. economic growth, competitiveness, and exports.
We appreciated your March 21st comments before the House Ways & Means Committee assuring that the Administration’s approach under Section 301 would be to “maximize the pain on China and minimize the pain on U.S. consumers.” However, we are already hearing from our constituents that they could be facing higher costs, reduced production, disruptions in supply chains and lost sales.
It has been widely reported that actual or potential increased tariffs are already causing pain for U.S. agricultural exports, including pork, soybeans, corn and beef. Furthermore, we are equally worried that the imposition of these tariffs on everyday consumer products wound amount to a de facto tax increase that disproportionately affects middle class and low-income American consumers.
According to a recent study done for the Consumer Technology Association and the National Retail Federation, increasing current U.S. tariffs on televisions by 25% would cost U.S. consumers $711 million in the first year alone; for ink and cartridges, U.S. consumers would pay an additional $529 million; and costs would also significantly increase for U.S. consumers of computer monitors (by $172 million) and batteries (by $24 million).
We believe you have many tools at your disposal to achieve our shared objectives. In particular, we urge you to work as closely as possible with our allies who share our concerns about China’s unfair trade practices, and have begun to address these practices more directly thanks to US leadership. We should avoid creating disincentives for our allies to join us in taking strong action, which higher tariffs could do. The most effective approach is for the international community, and not the United States alone, to stand up to China's unfair trade practices.
Sincerely,
_____________________ _____________________ Erik Paulsen Suzan DelBene Member of Congress Member of Congress
_____________________ _____________________ Barbara Comstock David Schweikert Member of Congress Member of Congress
_____________________ ____________________ Mike Bishop Lynn Jenkins, CPA Member of Congress Member of Congress
_____________________ _____________________ Darin LaHood Tom Emmer Member of Congress Member of Congress
_____________________ _____________________ Andy Biggs Ryan A. Costello Member of Congress Member of Congress
_____________________ _____________________ Mike Coffman Rod Blum Member of Congress Member of Congress
_____________________ _____________________ Anna G. Eshoo Dave Reichert Member of Congress Member of Congress
_____________________ _____________________ Jackie Walorski Mimi Walters Member of Congress Member of Congress
_____________________ _____________________ Adrian Smith Ann Wagner Member of Congress Member of Congress
_____________________ _____________________ Roger W. Marshall, M.D. Karen Handel Member of Congress Member of Congress
_____________________ _____________________ Derek Kilmer Vern Buchanan Member of Congress Member of Congress
_____________________ _____________________ Gregory W. Meeks James A. Himes Member of Congress Member of Congress
_____________________ _____________________ Scott Peters Carlos Curbelo Member of Congress Member of Congress
_____________________ _____________________ Ron Kind Peter J. Roskam Member of Congress Member of Congress
_____________________ _____________________ Cathy McMorris Rodgers Daniel M. Donovan, Jr. Member of Congress Member of Congress
_____________________ _____________________ Ron Estes Ami Bera Member of Congress Member of Congress
_____________________ ____________________ Leonard Lance Fred Upton Member of Congress Member of Congress
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