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US-China trade war
WorldUnited States & Canada

Business groups urge US not to impose more tariffs on necessary Chinese imports

On the first day of a two-day public hearing, witnesses said their industries relied heavily on products that only China could provide

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Chinese President Xi Jinping and US President Donald Trump in Beijing in October. Their trade war is starting to affect US businesses and industries. Photo: Kyodo
Owen Churchill

Representatives of American industries that will be affected by the proposed new tariffs on Chinese imports voiced their concerns to US officials on Tuesday as part of a hearing on US President Donald Trump’s expanding efforts to exert economic pressure on Beijing.

They warned that new duties would be harmful to US businesses, especially those that rely heavily on products that only China can provide, with one witness decrying the “blunt instrument of tariffs”.

The Office of the US Trade Representative called the two-day public hearing in Washington as the government seeks to finalise a list of Chinese products totalling US$16 billion that will be subject to a 25 per cent punitive tariff.

The move would be the first expansion of US tariffs on Chinese goods since a similar tax was imposed on US$34 billion worth of goods on July 6.

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In an indication that those duties are already affecting American agriculture, the administration announced on Tuesday that it was planning to offer US$12 billion in aid to farmers hurt by China's retaliatory tariffs.

In his opening remarks at Tuesday’s hearing, Representative Kevin Cramer, Republican of North Dakota, offered a defence of Trump’s trade policy.

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“After years of unsuccessful US-China dialogue, the United States is taking action to confront China over its state-led, market-distorting policy and practices,” Cramer said, adding that it was the “negligence of previous administrations” that had caused the United States’ current trade disadvantage.

“It is past time we take strong, defensive action to protect America’s lead in technology and innovation” he said.

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