‘Broad-Based’ Tariffs Wrong ‘Approach’ to Curbing Bad Chinese Behavior, Says Feinstein

There’s no question China “has engaged in unfair trade practices such as forced technology transfer and intellectual property theft,” Sen. Dianne Feinstein, D-Calif., wrote U.S. Trade Representative Robert Lighthizer June 17, as posted Tuesday in docket USTR-2019-0004. “The question is whether the broad-based tariffs imposed and proposed by the current administration are the right approach to addressing such issues,” said Feinstein. “They are not.” The Section 301 tariffs on Chinese imports “threaten U.S. jobs and businesses, including so many of those in California that rely on international trade,” she said. “The ports of Los Angeles and Long Beach, which handle nearly half of the container trade with China, have seen the flow of goods slowed due to the tariffs and the uncertainty surrounding them.” Feinstein has heard from “numerous” California companies “about the pain the tariffs are causing them,” she said. The tariffs are “disrupting their supply chains and raising their costs of doing business in ways that damage their competitiveness and in some cases, threaten their existence,” she said. The “primary impact” of the proposed List 3 tariffs “will be to damage our own citizens, businesses, and economy,” she said. “I urge you to pursue alternative approaches to address real trade issues with China.” Lighthizer’s office didn’t comment Tuesday. Three rounds of 25 percent tariffs remain in effect on roughly $250 billion worth of Chinese imports. President Donald Trump last month delayed putting the threatened List 4 duties into effect on virtually all remaining Chinese goods as the U.S. and China try to restart talks toward a comprehensive trade deal (see 1907010015). U.S. and Chinese negotiators remain in close "communication" by phone, but there's not yet a date for their next face-to-face meetings, said a Chinese Foreign Affairs Ministry spokesperson Tuesday. He denied as "entirely misleading" Trump's claim in a Monday tweet that China's Q2 economic performance was its worst in 27 years and is why China wants to make a deal. China's GDP grew 6.3 percent in 2019's first six months, which was "quite a good performance, especially when you compare it with that of other major economies," said the spokesperson. "China is not the only one that wants to conclude a trade deal. The U.S. wants it too. American people, especially consumers, strongly oppose the trade war and the additional tariffs on Chinese goods. Their voice speaks volumes."