Tariffs Would Reduce US GDP by $1 Trillion In 10 Years, Says Chamber on Coming Study

Section 301 tariffs on Chinese imports would reduce U.S. GDP by up to $1 trillion within a decade if left in place, concluded a Rhodium Group study for the U.S. Chamber of Commerce. The tariffs are “eroding” U.S. “competitiveness” in information and communication technology and “undermining globalized supply chains,” said the chamber, which plans to release the report Friday. “U.S. tariffs, together with Chinese retaliation, are disrupting global trade and supply chains, further damaging American businesses, workers, farmers, ranchers and investors,” commented the chamber in August, arguing unsuccessfully against imposition of the List 3 tariffs that took effect Sept. 24. The three rounds of tariffs imposed since July are costing the tech industry $1 billion a month in higher fees, estimated CTA in December (see 1812140045). U.S. Trade Representative Robert Lighthizer, in two recent appearances before Congress, refused to say if a trade deal with China hinges on lifting the tariffs or keeping them in place to enforce Chinese compliance (see 1903130036).