Both jobs and economic growth will be hurt if the U.S. engages in a trade war with China, U.S. Chamber President and CEO Thomas J. Donohue warned Wednesday.
In a statement urging the Trump Administration to refrain from imposing tariffs, Donohue said that such “high-stakes” ploys would be both costly and ineffective:
“The U.S. Chamber is very concerned about the increasing prospects of a trade war, which would put at risk the economic momentum achieved through the administration’s tax and regulatory reforms. We won’t drive the economy to over 3 percent growth or continue to create jobs if we go down this path. We urge the administration to take this risk seriously and specifically to refrain from imposing new worldwide tariffs on steel and aluminum.
“These new tariffs would directly harm American manufacturers, provoke widespread retaliation from our trading partners, and leave virtually untouched the true problem of Chinese steel and aluminum overcapacity. Alienating our strongest global allies amid high-stakes trade negotiations is not the path to long-term American leadership.”
The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.