US trade panel hears harsh criticism of proposed new tariffs – and praise for Chinese craftsmanship
At a public hearing in Washington, American business representatives say added duties on imports will decimate their operations
American business representatives voiced their frustration and anger on Monday over a proposed new round of US tariffs on Chinese imports, telling federal trade officials that the duties would wreak financial havoc on their industries and harm US consumers.
The comments came on the opening morning of a scheduled six-day public hearing before the inter-agency “301 committee” in Washington over possible duties on US$200 billion of Chinese goods – imports that witnesses said were crucial to their business operations.
Witnesses cited the quality of Chinese labour, China’s capacity for production volume and the impossibility of shifting supply chains to other countries on short notice in opposing further punitive tariffs.
The public airing of opposition to the tariffs came on the same day that US President Donald Trump said he had “no time frame” for bringing the trade war to a close. In an interview with Reuters on Monday, Trump, who in the past month called tariffs “the greatest” and said the United States “was built on tariffs”, said he was not hopeful about the outcome of mid-level talks between the US and China scheduled for this week in Washington.
While it is finalising the list of products subject to the new duties, which could go into effect next month, the Office of the United States Trade Representative (USTR) is also considering raising the initially proposed 10 per cent tariff to 25 per cent, at Trump’s request.
The tariffs would be the third round to be levied by the US government on Chinese imports. A 25 per cent tax on US$34 billion of goods went into effect in July, followed by 25 per cent duties on another US$16 billion of imports that will begin on Thursday. China has vowed to match the tariffs.
Opening witnesses from the bags, textiles and apparel industries were unanimous in their praise for Chinese workers’ craftsmanship in a sector that has virtually no bearing on matters of national security, one of the Trump administration’s buzzwords in justifying the aggressive tariffs.
Ross Bishop, president of a company that produces specialised luggage for pilots, said that labourers in China were “really good” at their work, adding, “If you pick the right factory, they’re actually artists.”