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'Please don't raise tariffs'

Fishermen off the Alaskan coast. A Florida maker of boat trailers. A building materials distributor in Tennessee.

Those and hundreds of other American businesses are delivering the same plea to President Donald Trump as he considers imposing tariffs on nearly 40 per cent of imported Chinese goods: Don't do it.

The Trump administration will hold six days of hearings starting Monday in Washington on the next barrage in an escalating trade war between the world's two largest economies: Trump's proposed tariffs of 10 per cent to 25 per cent on $200 billion in Chinese goods that could kick in as early as next month.

Once in effect, the tariffs would immediately inflate the prices that American companies would have to pay for Chinese components they need to build their products. Those companies would have to decide whether to pass those costs on to their customers or absorb the higher prices themselves.

The first shots have already been fired: In July, Trump slapped 25 per cent tariffs on $34 billion in Chinese imports. Taxes on an additional $16 billion are set to kick in this week. China is counterpunching with tariffs of its own.

But the $200 billion in additional Chinese goods that the Trump administration is considering taxing would mark a significant escalation in its trade fight with Beijing.

Washington and Beijing are clashing over U.S. allegations that China uses predatory tactics to try to overtake American technological dominance: Those tactics, the administration argues, include cyber-theft and pressure for U.S. companies to hand over trade secrets in return for access to the Chinese market.

So far, the U.S. tariffs have targeted imported Chinese industrial products — not the electronics, toys and food that ordinary Americans might buy at a mall or order online. But adding $200 billion to the target list would expose to hefty taxes many more of the $506 billion in goods that China shipped to the United States last year, including many consumer products. The list includes 6,031 Chinese imports — an eclectic compilation that ranges from buttons to burglar alarms to motorboats.

JO-ANN Stores, which sells fabric and crafting supplies, says it imports about 500 items on the tariff list, including fleece, yarn and cotton fabric. Ed Weinstein, JO-ANN's vice-president of tax and public affairs, said he doesn't understand how supplies for knitters and crafters became caught up in a trade dispute over high-tech policy.

"Our products are very simple," Weinstein told The Associated Press. "I would never have expected to see fabric and craft components on the tariff list."

In their filings to the Trump administration, companies that import from China complain that the tariffs will force them to raise prices, pay higher costs, try to find alternative suppliers or lose business to foreign rivals that don't have to pay a penalty on components and machinery they import from China.

"If you look at the filings, a lot of them are mom-and-pop businesses saying, 'Please don't do this to us,' " said Bryan Riley, director of the Free Trade Initiative at the conservative National Taxpayers Union.



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