US Senate News:
Source: United States Senator for Wisconsin Tammy Baldwin
WASHINGTON, D.C. – U.S. Senator Tammy Baldwin (D-WI) called on the president to maintain Section 301 tariffs, which are currently under interagency review by the Biden Administration. The U.S. imposed Section 301 in 2018, following an investigation by the United States Trade Representative, to combat China’s unfair anticompetitive policies. In a letter to the Biden Administration, Senator Baldwin joined several of her colleagues to warn that China’s cheating remains as pervasive as ever, and that any reduction in the size or scope of the tariffs would undermine American producers and their workers.
“Generations of free trade agreements that prioritize multinational corporations have devastated our communities, harmed our economy, and crippled our job market. Keeping the 301 tariffs in place and increasing the tariffs where necessary maintains a critical piece of a pro-worker trade agenda,” wrote the Senators. “Any reduction in the 301 tariffs allows China to gain a competitive advantage over hardworking Americans. American workers can compete with anyone if they have a level playing field, and now is not the time to roll back support. We strongly urge you to maintain or increase the 301 tariffs to stand with American workers and hold China accountable.”
Section 301 tariffs were instituted by the Trump Administration in 2018 on goods imported from China in response to its unreasonable and discriminatory policies and practices regarding technology transfer, intellectual property, and innovation. A 2022 report from the United States Trade Representative on China’s compliance with the World Trade Organization underscored that the underlying economic reasons and market conditions for why the tariffs were imposed have not changed. In addition, a March 2023 report from the United States International Trade Commission (USITC) showed that Section 301 and 232 tariffs led to significant increases in domestic production in the tariffed industries that were analyzed.
Senator Baldwin signed onto the letter with U.S. Senators Sherrod Brown (D-OH), Bob Casey (D-PA), John Fetterman (D-PA), Gary Peters (D-MI), Chuck Schumer (D-NY), and Debbie Stabenow (D-MI).
Senator Baldwin has long championed Made in America policies to support American businesses and workers. Last month, she announced she successfully pushed the Biden Administration to investigate unfair trade practices by the People’s Republic of China (PRC) that undercut American shipbuilding. She also worked to include strong Buy America standards in the Bipartisan Infrastructure Law.
The full letter is available here and below.
Dear President Biden and Ambassador Tai:
As the Administration continues its interagency review of Section 301 tariffs, we write to express the critical need to maintain or increase the tariffs to address China’s continued actions to cheat and undermine our national security. Maintaining the scope and impact of these tariffs benefits American workers, manufacturers, and their communities, and holds China accountable for the country’s continued anti-competitive practices. We welcome your diligence to protect American steel from China’s cheating and urge you to apply the same diligence to all 301 tariffs.
Section 301 tariffs were imposed in 2018 after an investigation by the United States Trade Representative (USTR) to address China’s implementation of a policy agenda that was, and remains, detrimental to the United States. China’s policies regarding intellectual property, technology transfer, and innovation discriminate against the United States, creating trade barriers that negatively impact American commerce. Tariffs are an important tool to level the playing field and combat anti-competitive practices from non-market economies and trade cheats, and they must remain in place.
China has continued to cheat, circumvent, and manipulate to artificially strengthen its economy and harm the United States. Across sectors like steel, solar products, and electric vehicles, China employs tactics to distort markets and create artificially low prices by illegally subsidizing its industries and producing to overcapacity. These practices disrupt global product demand and supply chains and threaten the goals of the United States’ industrial policy. Our communities are left reeling from the impact.
Generations of free trade agreements that prioritize multinational corporations have devastated our communities, harmed our economy, and crippled our job market. Keeping the 301 tariffs in place and increasing the tariffs where necessary maintains a critical piece of a pro-worker trade agenda. Any reduction in the 301 tariffs allows China to gain a competitive advantage over hardworking Americans. American workers can compete with anyone if they have a level playing field, and now is not the time to roll back support.
We strongly urge you to maintain or increase the 301 tariffs to stand with American workers and hold China accountable. Thank you for your attention to this urgent matter.
Sincerely,
