Manufacturers Coalition Says Section 232 Tariffs Needed to Prevent 'China Shock 2.0'
Section 232 tariffs are necessary to combat China's trade practices, the Coalition for a Prosperous America said in a July 23 report.
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
The report said that Section 232 tariffs are the best tactic to counter China's rising market dominance. Section 232 tariffs on steel and aluminum in the first Trump administration "serve as a case study to prevent a second China Shock," it said. CPA represents American manufacturers and producers.
The nine Section 232 investigations the Trump administration has initiated validate the "importance of domestic production for national security," and these "sectoral tariffs" are a transition from market-based trade, "which China exploited, towards a system of managed trade," the report said.
CPA President Jon Toomey said that his organization "advocates for the U.S. to adopt a managed approach to trade, requiring the government to set limits on import flows through such measures as tariffs or quotas in strategic sectors.” He said that "through the widespread adoption of Section 232 tariffs applied under the Trade Expansion Act -- the second Trump Administration is signaling its commitment to achieve this paradigm shift."