On July 2, the U.S. Chamber of Commerce released an analysis showing the state-by-state impact of retaliatory tariffs from China, the European Union, Mexico, and Canada, which have been imposed in response to new U.S. tariffs on imported goods. Raising tariffs will have adverse consequences and fails to consider the impact on our allies and trading partners.
At the Oxnard Chamber of Commerce, we are hearing more and more stories of the substantial impacts the tariffs are having on our local businesses.
The analysis was compiled using data on state exports from the U.S. Department of Commerce and data on U.S. exports subject to foreign tariffs from the official government sources of China, the EU, Mexico, and Canada.
Although trade is a nationally determined policy issue, its impact on California is immense. California exports to more than 225 foreign markets.
Raising tariffs can result in higher prices to the consumer for the specific product protected and in limited choices of products for consumers. Further, it can cause a net loss of jobs in related industries, retaliation by U.S. and California trading partners, and violates the spirit of our trade agreements.
The U.S. Chamber analysis found that:
According to a California state government international trade and investment study, “International trade and investment is a major economic engine for the state of California that broadly benefits businesses, communities, consumers and state government… California’s economy is more diversified than ever before, and the state’s prosperity is tied to exports and imports of both goods and services by California-based companies, to exports and imports through California’s transportation gateways, and to inflows and outflows of human and capital resources.”
Trade offers the opportunity to expand the role of California’s exports. In its broadest terms, trade can literally feed the world and raise the living standards of those around us.
The analysis is available online at www.thewrongapproach.com. State-specific fact sheets are available for download, as is the full U.S. data set.
The Oxnard Chamber of Commerce was one of 200 local chambers of commerce from across the United States signing on to a letter supporting Senator Corker's bill that would limit the President's powers to impose or raise tariffs.