Section 301 Tariffs Cost Americans, Not the Chinese

Gabriella Beaumont-SmithThe United States Trade Representative (USTR) is conducting a  four‐​year review of the Section 301 tariffs imposed on imports from China. In 2018, the USTR initiatedan investigation into China ’s technology and intellectual property practices and concluded that they adversely affected U.S. businesses. As a result, the U.S. imposed punitive tariffs up to 25 percent on over $300 billion worth of imports from China.As part of the review process, interested Americans could provide comments to the USTR. The almost 1,500 comments filedpaint an ugly picture —higher costs and prices, and less investment in workers and capital.A newstudy on the impact on American businesses and consumers of Section 301 tariffs specifically on imports of apparel, footwear, travel goods, and furniture paints a  similarly bleak picture. All of these goods except furniture are subject to most favored nation (MFN) tariffs—a preferential tariff rate for all World Trade Organization members, except Cuba, and Russia (whose preferential treatment was revoked by Congress in response to the war in Ukraine). Cha rt 1 illustrates the new total tariffs on these products.Traditionally, tariffs are paid by importers, so these new rates immediately hit American businesses importing apparel, footwear, travel goods, and furniture. U.S. firms needed to consider whether to share or totally pass on the tariff cost to their customers. In many cases, companies calculated that passing on...
Source: Cato-at-liberty - Category: American Health Authors: Source Type: blogs