rubber stamp over cardboard background with the words made in China and tariff

The National Association of Chemical Distributors (NACD) expressed its concerns regarding the Trump administration’s increase to 25 percent of the Section 301 List 3 tariffs imposed on Chinese goods imported into the United States and the negative impact they will have on NACD members and the chemical distribution industry as a whole.

Regarding the tariffs, NACD President and CEO Eric R. Byer said, “Placing a 25 percent tariff on hundreds of products NACD members import regularly from China will have a significant and negative impact on their ability to maintain growth and provide high-paying jobs. While addressing China’s unfair trade practices is an important endeavor, we urge the Trump administration to rethink this approach and use alternative measures to level the playing field without harming America’s job creators.”

In August 2018, NACD members Jessica Fegan of Connection Chemical and John Logue of Royale Pigments & Chemicals testified before the Office of the United States Trade Representative (USTR) about the consequences of raising tariffs levels on Chinese imports. They expressed their concerns about the List 3 tariffs and highlighted the potential impact the fees on approximately $200 billion worth of Chinese products will have on their businesses.

In her testimony, Fegan said, “A 25 percent tariff has the ability to be devastating and irreparable to certain industries and businesses. By adding unnecessary costs to the manufacturing process, these additional tariffs will undermine the growth this administration promised, industry has been yearning for, and just recently began experiencing.”

Logue testified, “Section 301 tariffs will significantly harm our ability to compete and may eventually put us out of business. The result of this proposal will be to help our rivals in moving their production up the value chain by enacting tariffs that not only harm importers but substantially raise costs for our critically important domestic manufacturers.”

Addressing China’s improper trade practices is critical to balancing the U.S.-China trade relationship and growing the U.S. economy. However, an escalation in protectionist policies will hinder the economic progress made over the last two years and negatively affect the American public. In light of the increased List 3 tariffs, NACD urges the Trump administration to work expeditiously with the Chinese government to eliminate these tariffs on importers that will otherwise harm American manufacturers and consumers.