CTT’s Roslyn Layton Submits Comments to USTR Regarding Section 301 Tariffs
Responding to the request for public comments regarding additional Section 301 tariffs on Chinese goods, American Enterprise Institute Scholar Roslyn Layton offered commentary and suggestions to the Office of the United States Trade Representative regarding future action and recommendations as to how the United States should handle trade policy with China in the future. Favoring a more focused approach to combating technological threats rather than blanket tariffs, Layton stated that a misuse of policy in the trade sphere could have harsh consequences – in some cases strengthening Chinese firms through misguided policy efforts.
As the Trump administration and Ambassador Lighthizer consider action against the Chinese in response to their repeated attempts at espionage, it is important to acknowledge ramifications for domestic business. Through blanket tariffs the cost of hardware could rise sharply for US-based businesses, making them less competitive in the international marketplace. This would in turn open doors to government-subsidized Chinese firms, equating to greater market share for the very businesses targeted in these trade actions. Roslyn concludes her recommendations by stating the United States should favor a targeted approach to combating hostile Chinese actors – such as placing Huawei on the Commerce Department’s Entity List — and continue combating national security and supply chain risks as they are identified.