(Arlington, VA) – After failing to come to an agreement with the government of China on a plan to reduce trade barriers between the two countries, the United States has increased tariffs on a range of Chinese imports – from 10 percent to 25 percent. China has announced that it will retaliate, but the form of that retaliation has not yet been announced. The White House has highlighted the possibility of additional tariffs if no agreement with China is reached. It is estimated that this recent tariff increase will cost the average family of four $767 annually.
Daniel Garza, President of The LIBRE Initiative, released the following statement:
“Tariffs and other trade barriers are another word for tax increases on the products that consumers buy. Consumers around the world benefit when governments eliminate those barriers. They are able to choose from a greater array of products at competitive prices – and that competition encourages all producers to keep their prices down. Exporters benefit when trade barriers are eliminated, as it improves their ability to compete and earn a profit. Hispanic families are directly affected by these trade barriers – since so many in our community spend a large portion of our incomes on necessities.
“With that in mind, the White House must focus on a realistic plan to eliminate barriers to trade as quickly as possible. These barriers are hurting American consumers and undermining the ability of U.S. companies to compete effectively in the international market. They are increasing the tax burden on working families, and undoing the positive benefits of tax reductions adopted just a few years ago. We need a course change, and soon.”