June 30, 2021

Contact:

Alexa Henning

Vanessa Ambrosini

Senator Johnson and Colleagues Call on President Biden to End Self-Inflicted Harm from Tariffs

U.S. Businesses and Consumers Urge Ending the Trade War

WASHINGTON – On Wednesday, U.S. Sen. Ron Johnson (R-Wis.), announced that he, along with Senators Chuck Grassley (R-Iowa), Deb Fischer (R-Neb.), Mike Lee (R-Utah), Joni Ernst (R-Iowa), Thom Tillis (R-N.C.), and Pat Toomey (R-Pa.) sent a letter to President Joe Biden urging the federal government to end the self-inflicted harm from the trade war that is damaging many U.S. businesses.

“Unfortunately, it is difficult to find a U.S. industry that has not been negatively affected by tariffs and the trade war,” the senators wrote. “These industries and businesses have faced increased costs, lost sales and market access, and competitive disadvantages due to the tariffs.  Moreover, many businesses have described that the primary beneficiaries of the trade war are their foreign competitors that do not face the same tariff costs.”

Letters from U.S. businesses that have been negatively impacted by the tariffs can be found here. The full text of the letter can be found here and below.

June 30, 2021

President Joseph R. Biden

The White House

1600 Pennsylvania Avenue, NW

Washington, DC 20500

Dear Mr. President:

For more than three years, we have highlighted the harm to U.S. businesses from tariffs and the trade war.  While campaigning, you acknowledged this harm when you stated “American farmers, manufacturers and consumers” were “losing and paying more.”[1]  We agree, and we write to highlight the stories of many businesses that are seeking a de-escalation of the trade war and to urge your administration to eliminate tariffs and quotas that are harming so many businesses and consumers.

Many U.S. businesses have described the negative, unintended consequences of tariffs over the last three years.  Unfortunately, it is difficult to find a U.S. industry that has not been negatively affected by tariffs and the trade war. These industries and businesses have faced increased costs, lost sales and market access, and competitive disadvantages due to the tariffs.  Moreover, many businesses have described that the primary beneficiaries of the trade war are their foreign competitors that do not face the same tariff costs.

In addition to these competitiveness concerns, many businesses have been forced to make difficult decisions to keep their operations afloat.  Some businesses have forgone expansions, productivity improvements or hiring new employees, and in some cases have had to lay off employees.  We have heard from a number of manufacturers and businesses that have raised the price of their products to account for the sharp rise in cost of their materials and inputs, which has led to the loss of customers.  Many farmers have lost access to growing markets and experienced significant price drops for their commodities, which has reduced profits.  Many businesses have been forced to hire politically-connected lobbyists and seek assistance from legislators to navigate the complex and opaque tariff environment.   It is simply wrong that so many businesses have suffered so that a few businesses may benefit.

It is necessary for your administration to evaluate the tariff experiences of the last three years and determine the policies that have worked and those that have not.  As you have stated, the trade war has been damaging and disastrous to many U.S. businesses.[2]  We agree that the federal government must stop those actions that are damaging immediately.  We also agree with your administration’s strategy that seeks to work more closely with allies.[3]  We believe this must be the centerpiece of any successful efforts to build relationships and ultimately, to hold China accountable for human rights and trade abuses.  An important first step would be to reduce the barriers to trade with our allies.  By doing so, we can stop damaging actions and retaliation and mend relationships while listening to the businesses across the country that have suffered from the negative economic consequences.  We urge the administration to listen to the many stories of these businesses and end the self-inflicted harm from the trade war.

Respectfully,

Ron Johnson

United States Senator

Charles E. Grassley

United States Senator

Pat Toomey

United States Senator

Thom Tillis

United States Senator

Mike Lee

United States Senator

Deb Fischer

United States Senator

Joni K. Ernst

United States Senator

cc:         The Honorable Gina M. Raimondo

              U.S. Department of Commerce

              The Honorable Katherine Tai

              United States Trade Representative

              The Honorable Cecilia Rouse

              Council of Economic Advisers

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