At the hearing on tax increase in China, American enterprises raised a wave of opposition.
[Global Times Comprehensive Report] "What will happen if Trump imposes a 25% tariff on about $300 billion of China goods, as he threatened? A fireworks company in New Hampshire said that they can only raise prices, but this may lead to the loss of business and make some small towns give up the fireworks display on July 4 th. A Minnesota motorcycle company says it may lose to foreign competitors who don’t have to pay taxes on imported parts from China. A Los Angeles household products design dealer said that they can only suspend recruitment for a long time and postpone the plan to open a larger warehouse … …” On June 17th, when the U.S. Trade Office began to hold a hearing on China’s tariff plan, the U.S. government was almost drowned out by the opposition of a large number of domestic enterprises. The Associated Press listed only a few examples in the above report. The White House claims that increasing tariffs can benefit American goods, but many American companies say that this line will not work; The White House also said that this can increase fiscal revenue, but in fact most of the money is used to subsidize farmers. Who will benefit from the United States holding high the tariff stick against China?
Buy American goods instead of China? These American companies said they couldn’t do it.
According to the Global Times reporter, the hearing on the 17th started at 9: 30 local time. This round of hearing lasts for 7 days, from June 17 to 21 and from June 24 to 25. It is expected that more than 300 American enterprises will send representatives to testify. At present, the office of the US Trade Representative has received more than 1,200 written comments and applications for face-to-face testimony. Reuters said on 17th that this schedule means that Trump will start a new round of tariffs after July 2nd, because there will be seven days to submit the final rebuttal after the hearing.
"Buy American goods instead of China imports? Some American companies said they could not do it. " The US "Wall Street Journal" published an article on the 17th, saying that the office of the US Trade Representative has been flooded with letters from local companies recently. These companies ask the US government to give up the new round of tariffs on China, because they have no choice but to China.
Atlas PyroVision, a fireworks show company headquartered in New Hampshire, USA, now relies almost entirely on imported fireworks from China to provide fireworks shows for cities and sell fireworks products to consumers. Pelkey, CEO of the company, said that he had searched all over the world and "failed to find a supplier who could produce fireworks meeting the quality standards of China". He also said: "It would be great if I could get boxes of fireworks from American companies. Unfortunately not. "
Curtain importer S. Lichtenberg & Co stopped producing curtains and poles in the United States as early as 2007. Scott Goldstein, president of the company, said that restarting production was not considered. "I don’t even know if I can recruit sewing workers and how much I should pay them." He said that none of the American textile mills or printing and dyeing mills that used to supply cloth are now operating.
Regalo International LLC, a manufacturer of baby safety doors and crib railings, said that when the United States threatened to impose tariffs on China 18 months ago, they immediately went to Mexico and other countries to find new partners, but nothing was gained. Vietnam can accept orders for wood products and textiles, but "the metal manufacturing infrastructure is weak". The company said that factories in other countries are "far behind" China.
After analyzing the federal import data of the United States, The Wall Street Journal concluded that the goods affected by the new tariffs include 273 kinds of goods that account for more than 90% of China’s imports, such as electric blankets, fishing lines and fireworks. Last year, the total value of these goods imported by the United States from China was about $66.3 billion.
According to the British "Financial Times" reported on the 17th, the American Chamber of Commerce, the most powerful business group in Washington, submitted a strongly worded document to the Office of the US Trade Representative, saying that the new tariffs on China will greatly increase the harm that has been caused to American consumers, workers and enterprises. According to the American Chamber of Commerce, the tariffs imposed by the White House may cost the US economy $1 trillion in the next 10 years.
A retailer importing outdoor cushions and artificial Christmas trees in Kentucky told the media: "We want to tell you that the retail sector is preparing to be hit hard. We pray that the government will listen to God. "
Nearly 80% of American voters are worried about rising prices
William Lesch, a trade policy expert at the Center for Strategic and International Studies in the United States, believes that this round of tariff measures by the US government will cause "strong dissatisfaction" among the public, which is different from previous ones. He further explained to AFP that the tariff increase in July means that people will see the prices of various commodities rise when preparing to buy autumn goods, winter clothes and Christmas goods, and the pressure on ordinary consumers will be further enhanced.
The Associated Press quoted a report from the National Retail Federation of the United States on the 17th, saying that after the tariff increase, American consumers will spend $4.4 billion more on clothes, $2.5 billion more on shoes and $1.6 billion more on household appliances.
Germany’s "Focus" magazine said on the 17th that Trump was fighting a trade war for the 2020 general election, and he was playing a dangerous game. But will this really win the support of most American voters? The pro-Trump American media Fox News released an interview survey of 1,001 American voters on the 16th. According to the results, 45% of the respondents said that the tariff increase was harmful to the US economy, and only 33% of the respondents thought it was beneficial to the US economy. In addition, nearly 80% of the respondents are worried that prices will rise further due to tariffs.
"The White House said that imposing tariffs on imported goods from many countries can increase income, but in fact it doesn’t help, because most of the tax revenue is used to subsidize farmers affected by retaliatory tariffs." Singapore’s Lianhe Zaobao said on the 17th that after the US government imposed tariffs on China and other countries, it added $21 billion to the national treasury. But last year, the White House allocated $12 billion to help farmers, and this year, the related allocation is as high as $16 billion.
At the same time, the US government’s fiscal deficit is continuously expanding. According to a report in Singapore’s Straits Times on the 17th, although the US economy performed well last year and in the first three months of this year, some economic analysts predict that the US economy will slow down next year, and there may even be a recession. Last month, the US government’s fiscal deficit reached $208 billion, a year-on-year increase of 42%.
The Associated Press said that in the case that the US economy is already showing signs of fatigue, increasing tariffs will further weaken its economic development. Zandi, chief economist of Moody’s analysis department, said that increasing tariffs will lead to a reduction of 900,000 jobs in the United States.
"If the United States does not release goodwill, the Sino-US trade war will never end."
"Trump’s neglect of business groups will only make him suffer." CNN quoted Holtz Eakin, chairman of the American Action Forum, as saying, "Whether he can be re-elected depends on the economy. The uncertainty brought by tariffs and trade policies has negatively affected the good momentum of economic growth in 2018."
Chadwick, a businessman who imported silk scarves from China and sold them in Wyoming, wrote a passage to the US government, perhaps expressing the feelings of more Americans: "We ask, implore and pray that you use common sense in trade affairs and take care of the needs of small people! Buffalo fight, but it is us little ants who are trampled to death. "
"How the Trump administration hurts everyone." Deutsche Telekom said on 17th that Trump imposed punitive tariffs on China about a year ago, but this was only the beginning. Iran, Mexico, EU … … The U.S. government uses trade as a weapon everywhere and makes many naked blackmail words. However, this has also caused serious damage to the United States.
"No peace, no deal, no winner." The German newspaper Le Monde quoted Phil Bermel, director of the Institute of World Economics in Kiel, Germany, as saying that the Sino-US trade war will never end if the United States does not release its goodwill. In the long run, the trade war will cost both sides too much and the world will not be calm.