New Tariffs May Impede Industry Efforts Against Counterfeits, Trade Groups Say

The additional tariffs under sections 232 and 301 "place significant barriers on the fight against harmful fakes," a group of trade associations said in a June 26 letter to the House Ways and Means Committee leadership. "U.S. tariffs on critical imported machinery not only hurt industries, but the additional costs trickle-down to consumers thus, affecting their choices," said the American Apparel and Footwear Association, the American Bridal and Prom Industry Association, the Fashion Jewelry and Accessories Trade Association, the National Office Products Alliance, the Precious Metals Association of North America, and the Water Quality Association. "Rather than pay more for legitimate goods, we fear that consumers might seek cheap counterfeits as a replacement, whether knowingly or unknowingly. In other words, U.S. policy could help legitimize fake goods at the expense of rightful intellectual property owners."

Retaliatory tariffs are limiting the prospects for U.S. companies too, the groups said. "For example, China’s plan to improve water quality presents a major opportunity for U.S. water treatment brands who have a trusted reputation worldwide," the associations said. "Higher import duties on these products will give foreign brands preference for fulfilling China’s needs and shut them out of future competition. Restricted market access prevents industries from investing in critical anti-counterfeiting education, research, and development for protecting their intellectual property."

The U.S. ought to "be leveraging these relationships to put an end to China’s mass production of counterfeits instead of focusing on retaliation." China should be held accountable on intellectual property rights violations, but the approach should be a collaboration with trade allies, the groups said. "We fear the current situation has already weakened our country’s negotiating position with China and will do more harm than good to the health and safety of consumers, the well-being of our country, and the vitality of our national security."

Email ITTNews@warren-news.com for a copy of the letter.