IBM Urges Biden to ‘Immediately’ Lift Tariffs on Chinese ICT Components

President-elect Joe Biden's incoming administration can support advanced manufacturing in the U.S. by “immediately lifting” the Section 301 tariffs on a “targeted list” of information and communications technology components and inputs sourced from China, blogged Alan Kohlscheen, IBM director-import compliance and supply chain security, and Michael DiPaula-Coyle, director-international trade policy. “Limited, early removal” of the most “counterproductive” China tariffs could provide relief for U.S. manufacturing, while leaving the new administration space “to negotiate further tariff changes based on Chinese market access commitments,” said the authors Wednesday. The tariffs have raised IBM’s sourcing costs by “tens of millions of dollars,” they said. “These imports do not represent high-value technology products -- rather, they are necessary inputs into U.S.-made systems and include such items as printed circuit board assemblies, mechanical parts, fans, power distribution units, power supplies, and cables -- largely available only from Chinese sources.” The incoming administration “can give a direct boost to U.S. manufacturing through targeted tariff relief on these sorts of component parts and inputs,” said Kohlscheen and DiPaula-Coyle. “Such a step would provide immediate benefits to U.S. manufacturing while also redirecting U.S. policy toward more international, and coordinated, action to address Chinese market access issues.” The Biden transition team didn’t respond to questions. Biden told New York Times columnist Thomas Friedman Tuesday evening that he won’t make “any immediate moves” on China policy after taking office. “And the same applies to the tariffs,” he said. “I’m not going to prejudice my options.” A “major priority” in the opening weeks of the new administration will be to “try to get us back on the same page with our allies” and develop a “coherent strategy” toward China, he said.