Trump Tariffs are Hurting Illinois Businesses – I’ve Seen It Firsthand

Trump Tariffs are Hurting Illinois Businesses – I’ve Seen It Firsthand
Photo provided by Office of Representative Brad Schneider

September 19, 2018

By Rep. Brad Schneider (IL-10)

President Trump’s irresponsible trade war continues to spiral further out of control, and while the adverse effects are being felt by American businesses large and small, the ultimate victims of the President’s erratic trade policies are likely to be American workers. It is turning out you cannot tweet your way out of a trade war.

The President has blustered that “trade wars are good, and easy to win,” but the results of his foray into knee-jerk protectionism are proving the opposite. For evidence, look no further than his floundering attempt to renegotiate NAFTA. Instead of engaging in a meaningful multilateral dialogue to modernize NAFTA, President Trump recently announced a vague new agreement with Mexico and is now desperately trying to bring Canada onboard.

I saw the effects of the Administration’s half-baked trade policies firsthand during a tour of eight businesses in the suburban Chicago district I represent. I sought out these visits to better understand the impact of tariffs and how employers are adapting to the challenging trade environment created by the President.

While each business was distinct, they all shared a common message: tariffs are creating uncertainty, raising the cost of doing business, and making it harder to hire new people and expand their operations.

These concerns were true across the businesses I visited. A large manufacturer saw a 30-40% increase in the cost of inputs used in their products. The price increases run in the millions of dollars, and their sales team is now spending more time fighting to keep current customers rather than cultivating new ones.

A medium-sized, family-owned and operated educational products company shared how they were scrambling to redesign products to eliminate inputs whose prices have risen due to tariffs. Such rework increases costs and delays the introduction of new products.

The cost of these policies is felt in more than just price, but also time and opportunity. Understanding and reacting to the President’s constantly escalating trade policies has diverted employee resources and energy. Rather than concentrating on innovating and growing, American businesses are instead working to manage the uncertainty.

As one employer put it to me, “I never thought I’d be in competition against my own government.”

That’s one reason I introduced legislation earlier this year to allow businesses hurting from tariffs to seek help through the Trade Adjustment Assistance for Firms program, which helps employers develop business plans to adapt.

Unfortunately, mitigating the harms of these tariffs presents challenges for businesses beyond overcoming President Trump’s stubbornness. Many businesses have already made decisions in order to minimize and absorb the cost of the Administration’s policies, including purchasing inventory at tariff-inflated prices. With the tap of his thumbs, President Trump could leave these businesses holding the bag for his Administration’s lack of a coherent trade strategy. Finding an approach to trade enforcement that is more effective and less destructive than tariffs needs to be done with thoughtfulness and predictability that has so far been lacking in the President’s approach to trade.

There’s a better approach to creating trade rules that work for, rather than against American workers. I agree that there are bad actors who take advantage of trade rules, China chief among them, and they deserve to be held accountable. But we will not accomplish that goal by engaging in a tit-for-tat trade war and slapping punitive tariffs, including on our closest international allies.

It’s time to instead strategically engage with our trade partners, end the misguided trade war, and instead enact a sensible, enforceable trade policy that support American workers, American businesses, American intellectual property, and our environment.

Fair trade can open new markets for American-made good and create good-paying American jobs. President Trump needs to get out of his own way.

 

A+
a-

In The News

Health

Voting

Opinions

New Poll Results Show Americans Are Concerned About Political Division and What Can Be Done to Fix It

As we head into this election year with a likely rematch between two relatively unpopular candidates, it may seem political divisions... Read More

As we head into this election year with a likely rematch between two relatively unpopular candidates, it may seem political divisions are higher than ever. Many controversial issues like immigration, taxes and debate over foreign aid dominate the news, so much so that many Americans may think... Read More

Ensuring Equity and Innovation in Kidney Care: a Call to Action During National Kidney Month

When you woke up this morning, you probably turned on the light, maybe looked at your phone or went to... Read More

When you woke up this morning, you probably turned on the light, maybe looked at your phone or went to get a glass of water, all without much thought. Electricity, phone service and running water are all essentials that we give little thought to until they’re... Read More

The American Rescue Plan Is (Still) Worth Celebrating

Just three years ago, our economy was in the midst of an unprecedented crisis. Communities across the nation were reeling... Read More

Just three years ago, our economy was in the midst of an unprecedented crisis. Communities across the nation were reeling not only from the health implications of the COVID pandemic, but also from high unemployment, business closures and frightening economic uncertainty. Bold and decisive action was... Read More

Cutting Through the Generative AI Noise: What Business Leaders Should Do Now

No matter what industry you’re in, there are two things that every business leader cares about: revenue growth and cost reduction. These are the... Read More

No matter what industry you’re in, there are two things that every business leader cares about: revenue growth and cost reduction. These are the metrics that CEOs talk about ad nauseam during earnings calls. They are the keys that unlock higher business valuations, individual performance bonuses and the ever elusive... Read More

Shield Our Eyes: Lawmakers Across the Country Must Ensure Eye Surgery Can Only Be Performed by Medical Eye Surgeons 

Training and experience matter, especially when health is on the line. Just as one would rightly be concerned to discover... Read More

Training and experience matter, especially when health is on the line. Just as one would rightly be concerned to discover a flight attendant, rather than a pilot, flying their airplane, so too would most people be alarmed to find the person performing surgery on and around... Read More

Fentanyl Kills More Than 150 Americans Each Day, but Some States Keep Overdose Rescue Medications Out of Reach 

Today’s growing overdose epidemic is being fueled by fentanyl, a synthetic opioid that is 50 times stronger than heroin and 100... Read More

Today’s growing overdose epidemic is being fueled by fentanyl, a synthetic opioid that is 50 times stronger than heroin and 100 times stronger than morphine. In fact, it’s so lethal that only a tiny amount — 2 milligrams, about the size of a pencil tip — can... Read More

News From The Well
scroll top