The Coalition for a Prosperous America (CPA) today applauded the Biden administration for finalizing actions to increase Section 301 tariffs on strategic imports from China and maintaining all existing Section 301 tariffs. This follows a thorough four-year review by U.S. Trade Representative (USTR) Katherine Tai. The tariffs, originally implemented during the Trump administration and strongly supported by CPA, will now be raised on critical sectors, including steel and aluminum, semiconductors, electric vehicles, batteries, solar cells, critical minerals, ship-to-shore cranes, and medical products. A detailed CPA economic analysis on these actions can be found here.
An economic analysis by CPA’s Chief Economist Jeff Ferry highlights that tariffs have had a positive impact on the U.S. economy, driving significant reshoring, and reducing reliance on China. Moreover, the U.S. International Trade Commission (USITC) found that Section 301 and Section 232 tariffs have effectively stimulated domestic production without increasing consumer prices.
“President Biden and Ambassador Tai’s decision to raise tariffs across key sectors sends a clear message that the U.S. is serious about reducing our dependence on China and safeguarding American workers and manufacturers from predatory trade practices,” said Zach Mottl, Chairman of CPA. “The China tariffs have already proven to be an essential tool for reshoring and strengthening domestic production. Today’s action continues the shift toward a bipartisan industrial policy that prioritizes U.S. economic security and growth.”
However, CPA strongly believes that more action is needed to strategically decouple from China and ensure a prosperous future for America’s workers and manufacturers. This includes revoking China’s Most Favored Nation (MFN) status to prevent further exploitation of U.S. markets and passing legislation to close the de minimis loophole. An economic analysis from CPA found that revoking China’s MFN status would result in the creation of 2 million new American jobs, increase real household incomes by $3,647, and increase real gross domestic product (GDP) by 1.75%.
China MFN
An economic analysis by CPA’s Chief Economist Jeff Ferry highlights that tariffs have had a positive impact on the U.S. economy, driving significant reshoring, and reducing reliance on China. Moreover, the U.S. International Trade Commission (USITC) found that Section 301 and Section 232 tariffs have effectively stimulated domestic production without increasing consumer prices.
“President Biden and Ambassador Tai’s decision to raise tariffs across key sectors sends a clear message that the U.S. is serious about reducing our dependence on China and safeguarding American workers and manufacturers from predatory trade practices,” said Zach Mottl, Chairman of CPA. “The China tariffs have already proven to be an essential tool for reshoring and strengthening domestic production. Today’s action continues the shift toward a bipartisan industrial policy that prioritizes U.S. economic security and growth.”
However, CPA strongly believes that more action is needed to strategically decouple from China and ensure a prosperous future for America’s workers and manufacturers. This includes revoking China’s Most Favored Nation (MFN) status to prevent further exploitation of U.S. markets and passing legislation to close the de minimis loophole. An economic analysis from CPA found that revoking China’s MFN status would result in the creation of 2 million new American jobs, increase real household incomes by $3,647, and increase real gross domestic product (GDP) by 1.75%.
China MFN
