Economists and organizations raise concerns over potential Section 301 tariff increases against China on strategic sectors, which may harm U.S. growth, productivity, and labor outcomes.

U.S. economists, trade groups, and international organizations express concerns over proposed modifications to tariffs against China under Section 301. These modifications, if enacted, could include raising tariffs in strategic sectors such as batteries, electric vehicles, semiconductors, steel, and aluminum products. Critics argue that these policies could hurt U.S. growth, productivity, and labor market outcomes, with the costs mainly borne by U.S. consumers and firms. The International Monetary Fund warns that the ongoing intensification of trade restrictions and increased use of preferences in the treatment of domestic versus foreign commercial interests could represent a growing downside risk for both the U.S. and the global economy.

August 13, 2024
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