Free Trade

Club for Growth Joins Coalition Urging President Trump to Include the Cruz-Daines-Gardner Competitiveness Chapter in NAFTA Renegotiation

Rachael Slobodien - April 06th, 2018

This week Club for Growth joined conservative allies in sending a letter to President Trump urging him to include the REINS Act within the Competitiveness Chapter of NAFTA renegotiations.

The letter explains, “We write in appreciation of the remarkable pro-growth deregulatory accomplishments of your administration and to urge you to make those accomplishments permanent by including the competitiveness chapter proposed by Senators Cruz, Daines, and Gardner in the renegotiated North American Free Trade Agreement (NAFTA)….”

The groups go on to note, “ We specifically urge inclusion in the competitiveness chapter of the Regulations from the Executive in Need of Scrutiny (REINS) Act, which would require costly new regulations to be individually approved by Congress before they could take effect.” The letter along with a complete list of signatories can be viewed here.

CFG on TV: Andy Roth joins Fox Business to Discuss the Latest on Tariffs with China and the Omnibus Spending Bill

Stacy French - March 27th, 2018

Andy Roth, VP of Gov’t Affairs at Club for Growth, joins After the Bell to discuss the latest on tariffs with China and the omnibus spending bill.

https://youtu.be/dWg3c22LD64″ target=”_blank”>https://youtu.be/dWg3c22LD64

Conservative Allies Urge President Trump to Reconsider Aluminum and Steel Tariffs

Andrew Roth - March 06th, 2018

March 6, 2018

The Honorable Donald J. Trump
President of the United States
The White House
1600 Pennsylvania Ave NW
Washington, DC 20500

Dear Mr. President:

On behalf of the undersigned groups representing millions of taxpayers and consumers across the country, we urge you to reconsider the tariffs on aluminum and steel announced on March 1, 2018. We appreciate your work cutting taxes and promoting America, but tariffs on aluminum and steel will be a tax on the Middle Class with everything from cars to baseball bats to even beer being more expensive.

Free trade is an integral foundation for any economy seeking growth, innovation, and expanded opportunity. Not only is free trade good for the U.S. economy, it is also good for the American taxpayer.

As President, you pledged to put America and American jobs first. But imposing tariffs would be bad for the economy and bad for American workers. U.S. manufacturers that consume steel employ an estimated 40 to 60 times more U.S. workers than do steel producing facilities. This tax hike would put these jobs at risk. In fact, when George W Bush increased tariffs on steel, 200,000 jobs were lost as a direct result.

If the U.S. government develops a fortress mentality in a global marketplace, it will spur trading partners to treat U.S. products in the same manner. If foreign governments imitate the U.S. government’s use of tariffs, U.S. exports of manufactured goods could decline. Nothing is more important to long-term U.S. prosperity than being able to sell America’s exceptional products in markets that 95 percent of the world’s population call home.

In December, you signed into law the most significant tax reform in more than 30 years. These tax cuts will revolutionize the US economy, create new jobs and increase living standards throughout the country. This new tariff proposal puts all of that at risk. A new tax on steel and aluminum will cost jobs, increase costs to consumers, and force businesses to go overseas. We strongly urge you to reconsider this proposal.

Sincerely,

David Williams
President
Taxpayers Protection Alliance

Phil Kerpen
President
American Commitment

Steve Pociask
President
American Consumer Institute

Lisa B. Nelson
CEO
American Legislative Exchange Council

Ashley N. Varner
Executive Director
ALEC Action

Robert Alt
President & CEO
Buckeye Institute

Norm Singleton
President
Campaign for Liberty

Andrew F. Quinlan
President
Center for Freedom and Prosperity

Jeffrey Mazzella
President
Center for Individual Freedom

Iain Murray
Vice President for Strategy
Competitive Enterprise Institute

Matthew Kandrach
President
Consumer Action for a Strong Economy

Frederik Roeder
Managing Director
Consumer Choice Center

David McIntosh
President
Club for Growth

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Wall Street Journal: Why the U.S. Could Suffer Deeper Economic Shock Than China in a Trade War

Doug Sachtleben - February 15th, 2017

From the Wall Street Journal, 2/13/2017

 

Retaliation could cause inflation to surge and cut demand for U.S. goods

A lot of economists aren’t factoring a U.S.-China trade war into their central forecast scenarios, counting on the Trump administration to curb its sharpest protectionist tendencies.

But what if it doesn’t?

“Bad for the world, worse for the U.S.,” says Nicholas Fawcett, a senior global economist with Goldman Sachs. “Trade is not a zero-sum game; by curbing imports, the U.S. could lose out in the long run.”

Mr. Fawcett figures a 45% tariff on Chinese imports and 35% fees on goods from Mexico translate into an effective tariff rate of around 11%, given their share of total U.S. trade.  Assuming Beijing and Mexico City retaliate with equivalent tariffs, he estimates it could depress U.S. gross domestic product by 0.7 percentage point by 2019. That’s more than twice the hit on China’s growth, at 0.3 percentage point. Roughly 21% of the value of U.S. imports are from China, more than double that of China’s imports from the U.S.

The most immediate impact would be a surge in prices for American consumers, given that around 10% of the basket of prices that comprise the inflation index is imported. The U.S. imports roughly three-quarters of its toys, shoes, computers and telecoms equipment from China and other Asian emerging markets.

The higher costs for U.S. goods abroad would also sink demand for American exports.

“In fact, tariffs would likely hit U.S. GDP so sharply that the Federal Reserve would be prompted to reduce interest rates to cushion the blow—despite an increase in inflation,” Mr. Fawcett says in a Goldman Sachs research report.

Ian Tomb, a macro strategist with Goldman, says either a surge in input costs for U.S. production or falling demand “could prompt globally connected firms to reduce wages and cut workers.”

That’s why among the losers will be some of his most ardent supporters: blue-collar workers who helped sweep him to election victory.

The fallout would spread to other countries, including Europe and Japan, as U.S. demand for international goods slumped. U.S. allies with strong trade relationships with China such as Korea would get hit from both sides of the shock. And with the Fed cutting rates and the dollar subsequently weakening, the yen and the euro would appreciate, adding to their woes.

The potential danger of a trade war is why the International Monetary Fund and others aren’t including a tit-for-tat tariff brawl in their projections. (Here’s why the IMF is worried about rising protectionism globally.)

But, warns the Institute of International Finance, “The likelihood of harsher trade initiatives should not be underestimated.”

OP-ED: Trump’s “Big [Bad] Border Tax”

Doug Sachtleben - January 05th, 2017

By David McIntosh

Read the article on Townhall.com >>>

When the President-elect takes to Twitter to threaten a major American company with a “big border tax,” as he did again on Tuesday, Americans are the real losers. First, it is working families who would pay the Big Tax. Second, the fact that the future leader of the free world is signaling out a private employer for a campaign of berating criticism means that everyone is in jeopardy.

American companies already face the highest corporate tax rate in the industrialized world at 35%. Forty-four states levy an additional corporate income tax. Those high taxes are passed along to consumers as the price of doing business.

If the President-elect follows through on his threats, those costs will soar even higher. In fact, here’s exactly what happens when Washington imposes tariffs on imports coming into the country:

1. The price of the imported product rises. A tariff is a hidden tax that’s passed along to buyers. Tariffs are often in double digits so they hurt everyone from consumers buying new electronic gadgets to businesses that are importing raw materials for products finished here.

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