Washington: U.S. business leaders raised concerns about President Donald Trump’s latest tariff plan, warning that new responsibilities for imports could raise costs, disrupt supply chains, and hurt U.S. companies and consumers.
Standing on the White House lawn, Trump imposed 10% tariffs on benchmarks for almost all U.S. trading partners around the world starting April 5, and additional top-up rates starting April 9, and currently imposed tariffs and non-tax barriers on U.S. companies.
Trade groups are frustrated by the measures, for example, most goods imported from China will face additional tariffs, totaling 34% of existing taxes.
“The application of new tariffs on this scale will cause changes and disruption that restaurant operators must navigate to keep their restaurants open,” the National Restaurant Association said in a statement.
“Manufacturers’ bets cannot be higher,” said Jay Timmons, president of the National Manufacturers Association. “Many manufacturers in the United States have very thin profits.”
He added: “The high cost of new tariffs threatens investment, employment, supply chains and, in turn, the U.S. ability to be competent in other countries and lead as an outstanding manufacturing superpower.”
Starting April 9, along with China, the EU, India and several other top trading partners, will also face new tariffs of at least 20%.
“These broad tariffs are a form of increased taxes that will raise prices for U.S. consumers and harm the economy,” Neil Bradley, chief policy officer of the U.S. Chamber of Commerce, said in a statement ahead of the announcement of the tariffs.
He added: “We urge policy makers to focus on accelerating the growth agenda of expanding our current tax policies, rebalancing regulations and unlocking the full potential of U.S. energy.”
In a recent analysis, Yale University’s budget lab estimates that the comprehensive tariffs on imports could cost the average U.S. household at least $3,400, a painful cost-of-living adjustment for most Americans.
“President Trump’s global and reciprocal tariffs are massive tax hikes for Americans, which will drive inflation, kill jobs on the streets and potentially cause recession to the U.S. economy,” Gary Shapiro, CEO of the Consumer Technology Association, said in a statement.
“These tariffs will raise consumer prices and force our trading partners to retaliate,” he said.
Despite widespread condemnation, some lobby groups have been more positive about the announcement.
“Today’s trade actions give priority to domestic manufacturers and American workers,” said Scott Paul, president of the Manufacturing Alliance.
He continued: “These hardworking men and women have seen unfair trade cut off the ground from the ground beneath their feet for decades.”
“They deserve a try,” he said.
