By Zhong Sheng, The Office of the United States Trade Representative (USTR) announced the final Section 301 tariff increases on imports from China, confirming a significant increase in import tariffs on Chinese-made electric vehicles, semiconductors, medical products, and more.
The tariff hike is another example of the United States politicizing, instrumentalizing and weaponizing trade issues, which is a protectionist move that runs counter to the general trend of the times. The United States should immediately correct this mistake and remove all additional tariffs on Chinese imports.
The U.S. Section 301 tariffs are a clear example of unilateralism and protectionism, severely undermining the stability of global industrial and supply chains.
Since 2017, in order to divert attention from its domestic challenges, pursuing “America First,” the United States has been flouting the WTO rules and the expectations of other members, and resorting to unilateralism, protectionism and trade bully, which has brought severe shocks to the multilateral trading system and severely undermined the global trade orders and the stability of the global industrial and supply chains.
Recently, China’s Ministry of Commerce released the 2024 Report on WTO Compliance of the United States, in which it calls the United States a “disrupter of global industrial and supply chains” and once again expresses concerns over the abuse of the Section 301 investigation.
China has repeatedly made solemn representations with the United States regarding this issue. The WTO has long ruled that the Section 301 tariffs violate its rules, yet instead of rectifying the situation, the United States has chosen to further escalate tariffs on Chinese goods, compounding its mistake.
The U.S. government has disregarded public opinions and insisted on raising tariffs, a move that lacks popular support.
The USTR had previously solicited public opinions on the results of its tariff review, and the majority expressed opposition to increasing tariffs or called for expanding tariff exemptions.
An executive of a tech firm stated that imposing tariffs on basic semiconductor components, such as diodes, would significantly raise production costs for U.S. companies.
Daniel Becker, head of the Safe Climate Transport Campaign at the Center for Biological Diversity, a nonprofit organization in the United States, pointed out that the tariff policy might weaken the competitiveness of American automakers, making it harder for the United States to tackle climate change and reduce carbon emissions.
Faced with the numerous objections to increasing tariffs, the USTR twice delayed announcing new tariff measures on China, stating that it would continue to “review public comments.”
However, it has become evident that the U.S. government has not respected public opinions, instead prioritizing domestic political considerations and pushing ahead with higher Section 301 tariffs on China.
This approach will not achieve the goals the United States claims to pursue. Instead, it will backfire, weakening the competitiveness of U.S. industries.
The U.S. tariff hike distorts market rules and severely harms the interests of American citizens. While the long list of tariff increases may satisfy some politicians’ desire to appear tough on China, it has also driven up the prices of imported goods, leaving consumers to bear the cost of these tariffs.
According to estimates from Moody’s, U.S. consumers are shouldering 92 percent of the costs associated with the tariffs on Chinese imports, which results in an additional $1,300 in annual expenses for an average American household.
Outdated protectionist policies have also failed to protect American workers. The Tax Foundation of the United States estimated that the tariffs on China have not solved employment issues; instead, they have caused a loss of 142,000 jobs in the United States.
U.S. medical equipment importers, among others, have pointed out that imposing tariffs on products like syringes will limit doctors’ access to high-quality tools, potentially having serious consequences for newborns and other vulnerable groups.
Steven Rattner, a former Counselor to the U.S. Treasury Secretary, commented that protectionist measures like tariff hikes will only raise domestic prices, restrict consumer choices, and threaten both U.S. and global economic growth.
“Rather than pursuing protectionist policies, Washington should focus on reducing barriers and strengthening global economic ties,” Foreign Affairs magazine recently said in an article.
The United States should face reality, put an end to the absurd practice of raising tariffs, and honor its commitments of not seeking to suppress or contain China’s development and not decoupling from China.
It should work with China to maintain the global industrial and supply chains stable and unimpeded, and fulfill its responsibility as a major country by genuinely contributing to global economic growth.
