Commerce chamber CEO says US needs to remove tariffs that hurt businesses

US Chamber of Commerce CEO Thomas Donohue on Tuesday called on the incoming Biden administration to re-engage with the world and lift punitive tariffs that hurt American companies and customers.

In his annual "State of American Business" speech, Donohue said the US economic future is tied to its global engagement.

"In recent years, our resilience has been tested through trade wars and tariffs," he said. "However, for America to remain competitive and expand our potential for sustainable growth and prosperity, we must re-engage with the world through a bold trade agenda."

Donohue underlined the importance of global outreach for the US economy, as 95 percent of the customers of US products live beyond its borders.

"And we must lift the tariffs that have hurt American manufacturers and farmers and have been paid for by American companies and their customers," he said, adding that the US needs to re-engage with multinational organizations like the World Trade Organization and the World Health Organization, and "restore our credibility on the global stage".

As to China, Donohue followed the narrative of trade and policy hawks in Washington by calling the country as "the biggest global challenge", but stressed the US-China relations should improve.

"We must work to stabilize the relationship through strength and cooperation," he said.  "China is by far the largest, fastest growing market for US companies, for the good of our own economy, and the world's, we have to seize these opportunities."

Meanwhile, he said the US also has to confront what he called "the unfair trade and industrial policies" that China uses against US companies and others.

Donohue also called on Congress to support the economy throughout the end of the COVID-19 pandemic, and he anticipated seeing a rebound in growth in the third quarter.