NSGA, NSSRA Sign on to Letter Seeking Reduction in Chinese Tariffs

DOWNERS GROVE, ILLINOIS (November 16, 2023) – The National Sporting Goods Association (NSGA) and National Ski & Snowboard Retailers Association (NSSRA) recently signed on to an Americans for Free Trade letter that was sent to President Biden ahead of his summit meeting with President Xi Jinping of China on November 15 in San Francisco.

Below is the text of letter from AFT that calls for a de-escalation and rollback of costly tariffs.

November 13, 2023

The Honorable Joseph R. Biden
President of the United States
The White House
1600 Pennsylvania Ave., NW
Washington, D.C. 20500

Dear President Biden:

At the upcoming Asia Pacific Economic Cooperation (APEC) Economic Leaders Meeting on November 16-17 in San Francisco, we understand you will meet with President Xi Jinping of the People’s Republic of China. We believe this presents a great opportunity to begin the discussions of a roadmap to a de-escalation of the tariffs and a rollback of China’s retaliatory tariffs as well as a commitment by President Xi that China will cease its harmful and predatory forced technology transfer and intellectual property theft practices.

Our companies and associations joined together to form Americans for Free Trade in 2018. Our coalition represents every part of the U.S. economy including manufacturers, farmers and agribusinesses, retailers, technology companies, powersports, service suppliers, natural gas and oil companies, renewable energy companies, importers, exporters, and other supply chain stakeholders. Collectively, we employ tens of millions of Americans through our vast supply chains.

In the last five years, American importers, including members of our coalition, have paid over $196 billion in Section 301 tariffs to the U.S. Department of Treasury on inputs to production and finished goods from China. These taxes continue to create tremendous uncertainty, increase the cost of doing business in the United States, and place a financial burden on American businesses – negatively impacting their ability to invest in their companies, hire more American workers, and remain globally competitive. For many companies, the tariffs remain a primary impediment to building or expanding manufacturing facilities and to manufacturing innovative and sustainable products in the United States. The tariffs continue to undermine the collective U.S. ability to constrain and reduce inflation. China’s retaliatory tariffs are still impacting U.S. exporters, especially agriculture exports. Many have lost market share in China and have not been able to make that up in new markets.

As we continue to deal with economic headwinds, we believe the time has come for the United States to chart a new path in addressing China’s unfair trade practices – one that does not raise costs for American businesses, workers, and consumers – and bolsters U.S. competitiveness. The Section 301 tariffs have been in place for more than five years and have not met their stated objectives. Your bilateral meeting with President Xi on the margins of the APEC meetings presents a great opportunity to achieve reciprocal de-escalation, as well as verification mechanisms to ensure China honors its commitments to stop technology transfers and intellectual property thefts. With verification, the United States could progressively reduce the Section 301 tariff rates over time and commensurate with China’s progress in meeting its commitments. If there is evidence of continued forced technology transfers and intellectual property theft practices in China, the administration could narrowly tailor tools to address them. Pursuing a diplomatic resolution to the tariffs while considering actions other than tariffs could reset the U.S. approach to addressing China’s unfair trade practices in a manner that does not disproportionately harm American businesses, workers, and consumers.

As your administration continues to seek to resolve outstanding trade disputes with other key trading partners, it is time to find a similar path forward with one of the U.S.’ largest trading partners. An easing of the Section 301 tariffs would provide a boost for the U.S. economy and U.S. manufacturing and create some stability in the U.S.-China relationship. We look forward to continuing to work with your administration on these critical issues. Thank you for your consideration.