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US-China relations
Opinion
Kai Xue
Kai Xue

Opinion | In backing US tariffs on China, big trade unions are doing more harm than good

  • With Section 301 tariffs undergoing a statutory review, major unions are being irrational in supporting the very taxes that threaten jobs and add to inflation stress

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Customers look at clothing, some produced in China, at a Costco in Washington on July 6. The first wave of Trump-era tariffs on Chinese goods began four years ago. Photo: EPA-EFE
Kai Xue
Opposition from small businesses and local unions in the US has gathered against continuing tariffs on Chinese goods, as the Office of the US Trade Representative (USTR) opened its review of the Trump-era taxes to the public. The Section 301 tariffs cover over US$300 billion in Chinese goods and were imposed in 2018 and 2019.

Over the summer, a prolonged debate occurred within the Biden administration on whether to change course. Treasury Secretary Janet Yellen led the side advocating for elimination of the tariffs. She argued the tariffs hurt consumers and were “paid by Americans, not by the Chinese”.

US Trade Representative Katherine Tai, however, seemingly ignoring concerns about inflation, sought to keep the tariffs as “a significant piece of leverage” in trade negotiations. In the end, the Biden administration kept the tariffs, at least for now. Notably, the US consumer price index remains 7.1 per cent higher last month than a year ago, so the need to tackle inflation remains.
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The tariff debate has been ongoing. Section 301 tariffs expire after four years unless a representative of a domestic industry that benefited from the tariffs requests for continuation. When the USTR opened its statutory review in May, it started by notifying these representatives – and received continuation requests. Essentially, the first round of the review was limited to tariff supporters.

In opposition, the US Chamber of Commerce, the largest business lobby in America, released a press statement. It read: “301 tariffs hurt American families paying higher prices for everyday goods and small businesses that need to import product to meet consumer demand.”

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The second phase of the USTR tariffs review, however, seeks public opinion via an electronic portal that opened last month. This is open to all viewpoints and infuses a fresh perspective. From small business owners to local branches of labour unions, grass-root voices have submitted comments on supply chain realities and offered contrarian takes that break from those of their national organisations.
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