Posted by 30 September 2020
President Trump's trade war with China has been controversial since he first announced tariffs on goods made in those countries. Now over 3,500 companies have filed suit to end some of these tariffs, which they say were imposed illegally.
The suits concern the imposition of a 10% tariff on some Chinese goods in 2019. The Trump Administration initially put in place tariffs against Chinese goods in 2018, but expanded them the next year. The suits contend that the law does not allow this later expansion, and asks the U.S. Court of International Trade to invalidate them.
President Trump has long supported tariffs, even going so far as to call himself "Tariff Man." He argues that other nations are competing unfairly with the U.S., and that tariffs help American companies. The companies opposing these tariffs say that they are counterproductive to helping the U.S. economy. They point out that many U.S. businesses rely on Chinese imports to make products in the U.S. Economists also note that ultimately consumers pay higher costs because of tariffs, not the companies manufacturing the products overseas.
The Trump administration put in place Chinese tariffs under a 1974 law that allows the president to counteract what he contends is unfair foreign competition. The companies suing allege that the federal law does not allow him to expand tariffs to other products once those tariffs are put in place. If successful, the suits would leave the initial tariffs in place, but would remove the second round. The 2018 announcement affected around $50 billion in Chinese trade, but the 2019 tariffs affected $200 billion.
Do you think that President Trump's tariffs on Chinese goods should be removed?