Fox Business Network has learned that U.S. business groups are weighing in on the trade war, as the Senate weighs the import tax on $200 billion in Chinese goods.
The U.S. Chamber of Commerce and American Farm Bureau Federation held a conference call Tuesday to urge the Senate to get rid of the tariff on imported goods.
“Implementation of a tariff on our Chinese imports will not be good for our farmers and ranchers or for U.S. taxpayers,” said American Farm Bureau Federation president Zippy Duvall. “It will only add to the price on products and will make our economy less competitive. This tariff will only add to costs and create even more uncertainty for farmers and ranchers.”
The Chamber of Commerce and America Farm Bureau are especially worried about the two big companies that would benefit most from the tariff – Ford and General Motors.
They’ve argued that a 25 percent tariff would result in a $6 billion revenue loss in the first year alone for General Motors, and a $3 billion loss for Ford Motor Co.
“This is a brutal and steady drumbeat of tariffs,” said Ford’s top economist, Dianne Weston. “Tariffs of 25 percent on cars are never good for a company. They are never good for our industry or the economy. They would put more pressure on us all and put more consumers at risk.”
Biden was careful not to endorse or comment on the tariffs on China while in Michigan last month, though he said the threats of tariffs was going to cause economic and political havoc across the country.
The White House has said the tariffs would be used as a negotiating tool over trade with China.
By Stephanie Murray
FOX Business Network’s Charlie Gasparino is reporting from Washington, D.C.