Washington: US business leaders have raised concerns about President Donald Trump’s latest customs plan and warned that the sweeping new tasks of import could increase costs, disrupt supply chains and damage US companies and consumers.
Trump, standing on the lawn of the White House, revealed a baseline 10 percent duty against almost all US trading partners in the world from April 5, and an additional top-up rate from April 9 for other countries currently introducing customs and non-customs barriers to US companies.
Trade groups responded with dismay to the measures, which would see most goods imported from China, for example, to an additional duty of a total of 34 percent on top of existing charges.
“The use of new tariffs on this scale will create change and disturbance that restaurant operators will have to navigate to keep their restaurants open,” the National Restaurant Association said in a statement.
“The efforts for producers couldn’t be higher,” said Jay Timmons, the president of the National Association of Manufacturers. “Many manufacturers in the US are already operating with thin margins.”
“The high cost of new tariffs threatens investments, jobs, supply chains and, in turn, America’s ability to surpass other nations and lead as the prominent manufacturing superpower,” he added.
Alongside China, European Union, India and several other top US trading partners will also face new tariffs of at least 20 percent from April 9.
“These broad tariffs are a tax increase that will raise prices for US consumers and hurt the economy,” said US Chamber of Commerce Chief Policy Officer Neil Bradley in a statement before the tariffs were revealed.
“We urge politicians instead of focusing the efforts on speeding up the pro-growth agenda to expand our current tax policy, rebalans rules and free up the full potential of American energy,” he added.
In a recent analysis, Yale University’s Budget Lab estimated that a 20 percent across customs duties on imports could cost the average US household at least $ 3,400-one painful living cost adjustment for most Americans.
“President Trump’s sweeping global and mutual tariffs are massive tax increases in Americans who want to run inflation, kill jobs on Main Street and can cause a recession for the US economy,” CEO of Consumer Technology Association Gary Shapiro said in a statement.
“These tariffs raise consumer prices and will force our trading partners to reciprocate,” he said.
Despite the widespread condemnation, some lobby groups were more positive for the message.
“Today’s Trade Priority prioritizes domestic producers and America’s workers,” said Scott Paul, president of the Alliance of American Manufacturing.
“These hardworking men and women have seen unreasonable trade cut the ground from their feet for decades,” he continued.
“They deserve a battle chance,” he said, calling Trump’s message “a necessary step in the right direction.”