The Consumer Technology Association, which puts on the world’s biggest text show, the Consumer Electronics Show, in Las Vegas, is speaking forcefully against the latest round of tariffs on imported goods from China that took effect on Sunday.
According to the CTA, tariffs have cost the consumer technology industry “more than $10 billion – including $1 billion on 5G-related products, hindering the U.S. in the critical global race for 5G. Tariffs will cost the technology industry nearly $7 billion in Q4 2019 alone” since July 2018.
“[T]ariffs will force consumers to pay more for their holiday gifts,” the CTA adds.
JPMorgan Chase has warned that tariffs will cost American consumers some $1,000 each this year.
The tariffs will “significantly” impact the “wallet of the US consumer/voter ahead of the 2020 election,” JPMorgan equity strategist Dubravko Lakos-Bujas wrote in a report three weeks ago.
Gary Shapiro, president and CEO of the CTA, issued this lengthy statement which reiterates previous anti-tariff comments from the group:
“This new tariff list taxes consumers on $52 billion worth of their favorite tech products, including TVs, digital cameras, Bluetooth earbuds, smartwatches and fitness trackers. American consumers were already going to pay higher prices for their holiday gifts. Now, the president’s decision to hike tariffs even higher means even more pain for American businesses, workers and families.
“The president absolutely should address China’s forced technology transfers and IP theft. But this unpredictable tariff policy is forcing us down the wrong economic path. Continuous threats of more tariffs and occasional promises that trade talks are progressing mean whiplash for global stock markets. That uncertainty hurts every American with a pension, retirement fund or college savings plan.
“This approach also compromises our global leadership. U.S. companies have to spend more resources on constantly changing trade rules and less on innovation, new products and our economic health. These tariffs are the worst economic mistake since the Smoot-Hawley Tariff Act of 1930, a policy that launched America into the Great Depression. This is not how you reach a meaningful trade agreement.
“The president does not have unilateral authority on trade. Congress should pass the Reclaiming Congressional Trade Authority Act of 2019, reasserting Congress’ role in trade policy and protecting Americans from unending trade wars and retaliatory tariffs.”
Source: WRAl Tech Wire