NEMA Says Proposed China Tariffs Materially Disadvantage Manufacturers

ROSSLYN, Va.–(BUSINESS WIRE)–Today the National
Electrical Manufacturers Association (NEMA) testified on behalf of
NEMA Member companies and the 360,000 American workers employed in the
electrical and medical imaging manufacturing workforce who would be
materially affected by the Office of U.S. Trade RepresentativeÔÇÖs (USTR)
proposed 25 percent tariff on more than 100 electrical and medical
imaging products and inputs.

ÔÇ£According to U.S. government trade data, we have estimated the 2017
value of Chinese shipments to U.S.-based electrical and medical imaging
manufacturers was approximately $9 billion, or slightly less than 1/5 of
the entire $50 billion in imports targeted by the proposal,ÔÇØ said NEMA
Vice President Government Affairs Kyle Pitsor. ÔÇ£If the 25 percent
tariffs are implemented as proposed, they would represent a tax increase
on U.S. manufacturers and their industrial, commercial, and residential
customers valued at about $2.25 billion.ÔÇØ

Many U.S. electrical manufacturers either produce their own products in
China or source finished goods and components from contractual partners
in China as a means to support their U.S. operations. The USTRÔÇÖs
proposal would place a 25 percent tariff on more than 100 product types
within or adjacent to NEMA scopeÔÇöas well as many other items that are
inputted to U.S.-based manufacturing. Affected products include
everything from electric motors, transformers, and switchgear to LED
chips, residential thermostats, and medical imaging equipment such as
CT, MRI, and X-ray units.

ÔÇ£If implemented, the tariffs will increase the tax burden on U.S.
manufacturing operations that are already at a competitive disadvantage
due to the tariffs on steel and aluminum imports. The imprecision of
broad-based tariffs will result in collateral damage up and down the
global supply chains that is better avoided,ÔÇØ Pitsor added.

ÔÇ£U.S. electrical and medical imaging manufacturers support an approach
that results in fair and open global markets through the application of
clear, binding, and enforceable trade rules and compliance with
international norms of intellectual property protection,ÔÇØ Pitsor said.
ÔÇ£We urge the Administration to consider and pursue alternative measures
to bring about the necessary changes in Beijing that result in free and
fair trade in our global marketplace.ÔÇØ

View the full transcript of PitsorÔÇÖs testimony
online.

The National Electrical Manufacturers Association (NEMA) represents
nearly 350 electrical equipment and medical imaging manufacturers that
make safe, reliable, and efficient products and systems. Our combined
industries account for 360,000 American jobs in more than 7,000
facilities covering every state. Our industry produces $106 billion
shipments of electrical equipment and medical imaging technologies per
year with $36 billion exports.

Contacts

National Electrical Manufacturers Association (NEMA)
Tracy Cullen,
703-841-3282
[email protected]