Staff Reports
Sen. Josh Hawley (R-MO) has recently introduced a controversial legislative proposal that has sparked significant controversy. The legislation aims to strip China of its designation as a regular trading partner, leading to a significant surge in tariffs on imported goods from China. According to Bryan Riley of the National Taxpayers Union, the average tax on Chinese imports would skyrocket from 11% to 41%. Consequently, specific products like toys, shoes, clothing, and computers/cellphones would be subject to taxes of 70%, 59%, and 35% respectively.
"When you’re a Republican senator yet find yourself teaming up with Sen @BernieSanders on economic policy, that should be your first sign that something has gone horribly, horribly wrong."
–@Brad_Polumbohttps://t.co/htkc7kD6pw— Washington Examiner (@dcexaminer) May 21, 2023
Economists generally agree that tariffs primarily burden consumers within the imposing country and have an overall negative impact on the economy. Sen. Hawley asserts that this policy is necessary to empower and foster independence among the working class. However, economists counter that such a policy would harm working families who are already grappling with inflation. Moreover, tariffs may safeguard certain jobs but ultimately lead to job losses in other sectors. For instance, studies indicate that former President Donald Trump’s steel tariffs may have “protected” some jobs in the steel industry but resulted in more job losses in industries reliant on steel and higher costs overall.
Rather than resorting to tariffs, economists propose the exploration of free trade agreements that diminish or eliminate trade barriers with other nations. This approach would effectively decrease reliance on China without adversely affecting working families. Additionally, it would facilitate the establishment and growth of businesses in sectors where the United States holds a comparative advantage over other countries.
Sen. Hawley’s legislative proposal has garnered criticism from various factions. Economists contend that it would have negative consequences for working families and potentially lead to job losses. Instead, they recommend the pursuit of free trade agreements with alternative nations as a means to reduce economic dependency on China, while safeguarding the interests of working families. The forthcoming actions of Sen. Hawley, whether he chooses to heed this advice or persist with his proposed legislation, remain uncertain.
