A letter signed by more than 100 companies pleading for relief from tariffs[1] has fallen on deaf ears. The group that sent the letter, Americans for Free Trade, cites research stating that the U.S. economy could stand to gain $75 billion from lowering the tariffs on the goods imported from China and a resulting lowering of Chinese retaliatory tariffs. The move, the group writes, would “provide a boost to the U.S. economy of over $75 billion, or 0.4 percent of U.S. GDP, returning discretionary income to families, encouraging capital expenditures by private companies, and instilling market confidence in decisive action to address the current economic situation.”
Trump and Treasury Secretary Steven Mnuchin rejected the request, claiming that the billions charged through tariffs are heading into U.S. coffers. Data suggest the tariffs are primarily paid for by U.S. companies and taxpayers, especially farmers. Nevertheless, President Trump isn’t wavering:
“China is paying us billions and billions of dollars in tariffs and there’s no reason to do that,” he said at a news conference when asked about the business letter.[2] “I can’t imagine Americans asking for that. It could be that China will ask for a suspension or something. We’ll see what happens. China is having a very rough time.”