China tariffs will cause collateral damage, NEMA says

The National Electrical Manufacturers Association (NEMA) said import tariffs on products manufactured in China will cause collateral damage to U.S. manufacturers because many vendors either produce their own products in China or source finished goods and components from contractual partners in China.

The Office of the U.S. Trade Representative (USTR) on April 3 proposed placing a tariff on approximately $50 billion in imported products to address China's practices related to technology transfer, intellectual property, and innovation. NEMA instead supports an approach that results in fair and open global markets through the application of clear, binding, and enforceable trade rules and compliance with international norms of intellectual property protection.

The USTR proposal would place a 25% tariff on more than 100 product types in industries that NEMA addresses, including medical imaging scanners. If implemented, the tariffs would place U.S. manufacturers at a competitive disadvantage relative to their international and U.S. competitors that are not covered by the tariffs, according to NEMA. Additionally, this action would result in a substantial "tax" burden on U.S. manufacturing operations that already face tariffs on steel and aluminum imports.

NEMA's full statement on the proposals is available here. Speaking on behalf of U.S. electrical and medical imaging manufacturers, NEMA Vice President of Government Relations Kyle Pitsor will present oral testimony to the USTR Section 301 Committee on May 16.