China Tariffs: 661 Companies Warn Trump Trade War Will Damage US Economy

A total of 661 American companies and industry trade associations wrote to president Donald Trump on Thursday, urging him to lift his tariffs on China and end his trade war that will eventually add $2,000 to the expenses borne by each American family and cut U.S. GDP by 1.0 percent.

Among the big name signatories of the letter, whose firms employ more than a million people, are Walmart, Costco, Target, and Foot Locker.

This terse, one-page letter is the latest of many sent to Trump by Tariffs Hurt the Heartland, a national campaign against tariffs supported by more than 150 trade groups representing agriculture, manufacturing, retail and the technology industries.

In its letter dated June 13, the signatories expressed their deep concern about the escalation of tit-for-tat tariffs.

“We know firsthand that the additional tariffs will have a significant, negative and long-term impact on American businesses, farmers, families and the U.S. economy,” said the letter. “Broadly applied tariffs are not an effective tool to change China’s unfair trade practices. Tariffs are taxes paid directly by U.S. companies, including those listed below -- not China.”

“We urge your administration to get back to the negotiating table while working with our allies to develop global, enforceable solutions. An escalated trade war is not in the country’s best interest, and both sides will lose.”

Imposing new tariffs on an additional $300 billion in goods plus those impacted from previously implemented tariffs and retaliation will result in the loss of more than 2 million U.S. jobs, add more than $2,000 in costs for the average American family of four, and reduce the value of U.S. GDP by 1.0 percent, according to data from Trade Partnership Worldwide LLC, an international trade and economic consulting firm cited by the letter.

The signatories said they agree U.S. trading partners must abide by global trade rules, “and we support the administration’s efforts to address unfair trading practices, including intellectual property violations, forced technology transfer and more.”

But the signatories encourage the Trump administration to negotiate a strong deal with China that addresses longstanding structural issues, improves U.S. global competitiveness and eliminates tariffs.

“We believe this goal can be achieved without taxing Americans,” said the signatories.

They said they’re counting on Trump to force a positive resolution that removes the current tariffs, fosters American competitiveness, grows the economy and protects U.S. workers and customers.