Plea against tariffs on daily consumer goods
Print Edition
A roll of toilet paper, a woman’s purse and a glue stick are among the items Hun Quach carried in a shopping basket to the US committee hearing on whether to impose additional tariffs on US$200 billion of Chinese goods.
Quach, vice president for International Trade at the Retail Industry Leaders Association, came before the committee housed in the US International Trade Commission to request a removal of over 650 tariff lines from the proposed list.
Most of the goods are sold in retailers near every American neighborhood, such as grocery stores, pharmacies, supermarkets, and apparel shops. And Quach is representing over 200 of them.
Her way of persuasion is straightforward — to walk the committee through “a day in the life of tariffs.”
“The alarm clock rings as you wake up to start your day. Your back hurts. Need a new mattress? Better buy it soon. Mattresses are on the proposed 301 tariff list. 301 is a bed tax,” Quach said.
She was using a jargon to refer to the tariffs, as the US government launched an investigation into China’s trade practices under Section 301 of the Trade Act 1974 that led to the tariff proposal.
“You walk into the bathroom. Everything you need to get ready in the morning — from bar soap, make-up, electric shavers, hair appliances and accessories, and even your toilet paper will get hit with the 301 tariff,” she said.
She raised the items from the shopping basket as she spoke.
She went on to talk about office chairs and furniture, children’s backpacks, their school supplies like paper, glue sticks, binders and calculators — the replacement of all which will cost more under the potential tariffs.
“Dinner time. Healthy proteins like frozen shrimp, salmon, shellfish, even fish sticks, in fact, hundreds of food items are on the 301 tariff list. 301 is a food tax,” she said, concluding the day under tariffs.
Quach said the new tariffs will make daily items less affordable and will thus hurt the US economy.
For the past few years, the US economy has been on a robust recovery under strong purchases. The potential tariffs will damp the consumers’ purchasing enthusiasm and directly impact the recovery, she said.
Besides, the tariffs will hit sales jobs and harm the economy, she feared.
To answer the committee’s question if the retailers can change the source of their imports, she said for some yes but for most no, as the 650 categories of goods have been mostly enjoying an “ecosystem” of production in China and its relocation would take years.
The RILA represents the world’s largest retail companies, including leading brands such as Walmart, Best Buy, and Costco that sell goods concerning every aspect of Americans’ daily lives. Its members account for more than US$1.5 trillion in annual sales and 4.2 million jobs.
Since the United States triggered trade tensions with China, Quach has repeatedly appeared at hearings on the tariffs, appealing for exclusion of categories from the target list that affects local retailers and consumers. Many corporate executives and industry representatives also made similar pleas at these hearings.
The US trade disputes with China and other global trading partners have lasted for months.
Tariffs on US$34 billion of Chinese goods and an additional US$16 billion were already in effect as of July 6 and August 23, respectively.
After announcing additional tariffs on steel and aluminum imports and on US$50 billion of Chinese products. The United States threatened last month to slap extra tariffs of 10 percent on US$200 billion of Chinese goods, later increasing the rate to 25 percent.
The ongoing hearings on the latest round of tariff proposal started on August 20. Among over 350 witnesses, most testified against the move or sought exclusion of categories concerning their businesses.
For these witnesses, 301 tariffs will be a “de facto tax” on consumers.
“If enacted, the Administration’s proposed 301 tariffs will cut into the budgets of American families, especially lower and middle-income families who can ill-afford to pay more for everyday consumer goods,” Quach said.
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