TIA Critical of Trump Administration’s 25% Tariff on Chinese Components
Friday, June 15, 2018 | Comments

The Telecommunications Industry Association (TIA) criticized the Trump administration’s list of items subject to 25 percent tariffs following the Section 301 investigation into China’s trade practices. The list includes a number of inputs used in the U.S.-based manufacturing of telecom goods.

“We are extremely disappointed that the administration has opted to employ this trade remedy,” said TIA’s Senior Vice President of Government Affairs Cinnamon Rogers. “The Section 301 investigation was undertaken in response to China’s unfair trade practices. But the administration’s response stands to hurt one of the most innovative sectors of the American economy, making it more expensive to manufacture advanced telecom products here in the United States. This could result in job losses as well as higher costs for consumers.”

In comments last month to the Office of the U.S. Trade Representative, TIA said it had two main concerns with the list of products. The first concern was that the list includes a number of information and communications technology (ICT) components used to manufacture telecom products in the U.S.

“A 25 percent increase in the cost of inputs will increase costs for advanced technology manufacturing, where the U.S. currently enjoys an advantage over much of the rest of the world,” the TIA comments said. “In a highly competitive ICT industry, new duties on tech components will create a perverse incentive for firms to outsource advanced manufacturing from the United States. The result: Administration actions intended to counter unfair Chinese policies might paradoxically result in American job losses.”

Secondly, TIA said taxes on ICT goods hurt vertical industries, not just technology firms, which rely on the communications products to do business. “Assuming U.S. firms had to raise prices as a result of increased component costs, the resulting higher price tags for internet and other telecom products would needlessly raise the cost of connectivity for a broad array of U.S. business as well as consumers,” TIA said in its comments.

Would you like to comment on this story? Find our comments system below.




 
 
Post a comment
Name: *
Email: *
Title: *
Comment: *
 

Comments

No Comments Submitted Yet

Be the first by using the form above to submit a comment!

Site Navigation

Close