Consumer Technology Association Spotlights Ruinous Impacts of U.S. Tariffs

SEATTLE (Scrap Monster): The Consumer Technology Association (CTA) has filed its comments on the proposed tariffs by Trump administration on approximately $50 million of Chinese imports. The Association highlights the negative impacts that the proposed tariffs could have on U.S. economy and a lot of American startup companies including its member companies. As per the comments submitted by CTA, nearly 79% of its members believe that the tariffs could harm their businesses. The figures are based on an internal survey conducted by the Group among its members.

According to CTA, the proposed tariffs are likely to put some of its member startup companies at a disadvantage when compared with competitors in other countries. The competitors are likely to undercut them in the market by importing critical components from China. There are also fears that the tariffs could prevent their products from reaching markets. The letter highlights the concerns raised by two of its member companies-Local Motors and HiberSense. The Tech Group urges the U.S. administration to engage in diplomatic solutions with China, rather than imposing self-harming tariffs. Continuation of negotiations and potential strategic trade agreements will also help the U.S. technology companies to remain competitive in international market, CTA said.

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The internal survey carried out by CTA revealed that nearly 193 tariff classifications under the proposed tariffs could negatively impact nearly 79% of CTA’s small business members. Almost 80% of the CTA members believe that switching their sourcing from China to another country is nearly impossible. Also, it may likely lead to costly disruption of their business. Among those companies that are capable of switching their source, good majority feels that it is economically impractical to do so.

The economic impact study conducted by CTA in partnership with the National Retail Federation (NRF) had warned that the proposed tariffs could lead to net loss of around 134,000 jobs.