John Howard buys what are known as “atomizer coils” from China, and like other American businesspeople who testified Tuesday at a public hearing in Washington, he’s worried about the Trump administration’s proposed tariffs on $200 billion of Chinese imports.
Howard, of Dallas, told a panel of interagency officials that the particular coils he imports for use in vaping devices can only be bought from China, and that his business, Coil Wholesalers LLC, would be harmed if the tariffs go through. “There’s one source for them, that’s China,” he said.
After the hearing, Howard told MarketWatch that the threatened duty would not put him out of business. But he said a 25% tariff would have to be loaded on top of what he now pays for the coils, which is between $4.19 a pack up to $15.25, and ultimately raise costs for customers.
Robert Schroeder/MarketWatch
John Howard of Coil Wholesalers. Howard was one of dozens of representatives of U.S. companies testifying about the tariffs this week, as the U.S. and China prepared to resume trade talks. Executives from big-name companies like Dollar Tree Stores Inc . DLTR, +0.33% and smaller firms like the Wooster Brush Co. warned the administration their businesses and consumers would be adversely affected by the proposed 25% duties. Tuesday’s hearing at the U.S. International Trade Commission was the second of six days to hear from businesses.
The hearings are open to the public, but photos and video are prohibited from inside the room.
The administration is trying to pressure China into changing its trade policies, as the U.S. posted a $376 billion deficit in goods with Beijing last year. But several companies said U.S. consumers would feel the pain.
Jonathan Cowles of Atlanta-based Liberty Furniture said tariffs would have a “devastating effect” on his company, and would act as an “added tax.” Resulting price increases on Liberty’s products “would ultimately be passed on to our consumer,” he said, describing tariffs as a “direct hit” on consumers.
Dollar Tree Chief Executive Gary Philbin told the hearing that the proposed tariffs would put new jobs and “possibly existing jobs” at risk. The Chesapeake, Va.-headquartered company sells items for $1 or less.
Chinese negotiators are set to begin talking with a team led by Treasury Undersecretary David Malpass on Wednesday. Officials told The Wall Street Journal the talks are aimed at finding a way for both sides to address trade disputes.
Read: Even with trade talks on tap, U.S. moves forward on new tariffs against China.
The Trump administration has already imposed tariffs on $34 billion of Chinese goods. Tariffs are to be set on an extra $16 billion Thursday.
Also see: Trade-war tracker: Here are the new levies, imposed and threatened.
Other business executives used the hearing to implore the Trump administration to go ahead with new tariffs.
Mike Pedersen of Washington-based Alta Forest Products said his industry is “under a flood of attack” from Chinese imports and that a 25% tariff is “extremely appropriate.” He described his company as the largest U.S. producer of wood fence boards.
Want news about Asia delivered to your inbox? Subscribe to MarketWatch's free Asia Daily newsletter. Sign up here.
