US companies reject proposed extra tariffs on Chinese goods

WASHINGTON - Scores of US companies and industry associations rejected in a hearing Tuesday the unilateral extra tariffs the Office of the US Trade Representative (USTR) has proposed on imports from China.

Testifiers from a wide array of industries, including semiconductors, cable, chemical and retail, said slapping additional tariffs on Chinese goods will erode the competitiveness of US businesses and burden US consumers with price hikes.

During her testimony, Hun Quach, vice president of the Retail Industry Leaders Association, showcased a collection of Chinese-made merchandise including Christmas lights, plastic straws, cling wrap and markers, saying the household items are dominantly produced in China.

If Washington were to levy additional tariffs on them, the increased cost would mostly be passed on to US holiday shoppers, she said.

When US trade officials pressed the testifiers on the question whether it was feasible to outsource their manufacturing work to China, most of them firmly dismissed the suggestion, citing unbearable time and financial cost and irreplaceable production power.

Robert Hinsch, who works at a textile company, said it took 20 years for his company to forge ties with Chinese partners, and that switching suppliers would take at least two years.

US Congressman Kevin Cramer noted that previously imposed US tariffs against China have already damaged the US farming industry, sinking soybean prices to a level that could put many US farms out of business.

Cramer said he hopes Washington and Beijing would soon find a way to resolve their trade disputes through negotiation.

The United States slapped an extra 25 percent tariff on $34 billion worth of Chinese imports beginning July 6, to which China was forced to respond with an equivalent retaliatory measure. The USTR is now mulling a 25-percent additional tariff on another $16 billion worth of Chinese goods.