Source: United States Senator for Nebraska Deb Fischer
WASHINGTON, D.C. – On Wednesday, U.S. Senator Deb Fischer (R-Neb.) joined Senators Ron Johnson (R-Wis.), Chuck Grassley (R-Iowa), Mike Lee (R-Utah), Thom Tillis (R-N.C.), and Pat Toomey (R-Pa.) in sending a letter to President Joe Biden urging the federal government to end the self-inflicted harm from the trade war that is damaging many U.S. businesses.
“For more than three years, we have highlighted the harm to U.S. businesses from tariffs and the trade war. While campaigning, you acknowledged this harm when you stated ‘American farmers, manufacturers and consumers’ were ‘losing and paying more.’ We agree, and we write to highlight the stories of many businesses that are seeking a de-escalation of the trade war and to urge your administration to eliminate tariffs and quotas that are harming so many businesses and consumers,” the letter read.
Testimonies from Nebraska businesses:
“Hornady has noted a troubling trend following implementation of the Section 301 tariffs. Some of our larger customers have chosen to bypass importers such as Hornady and develop their own supply chain directly from China. This translates into lost business for companies like Hornady with no benefit to US manufacturing.
“More disturbing is the fact that our core market – individuals and families seeking secure firearm storage solutions – have had to endure significant price increases. Hornady is a major supporter of Project ChildSafe® and we believe that affordable solutions for secure firearm storage should be available to persons of any income level. We constantly review sourcing options and have made many attempts to source quality Firearm Safety Devices in the United States but have so far failed to be able to do so competitively. The effect of the Section 301 tariffs on our industry is that prices for firearm storage solutions have effectively increased by 25% or more across the board, potentially discouraging some consumers from purchasing a firearm safety device,” said Hornady Security Products.
“Our steel costs have doubled over the past six months going up virtually weekly. We have had to pass along price increases to our customers every month and will have more to go as steel costs continue to go up. Our concern is when the auto manufacturers get back going full steam in the fall when they get their chip shortage issue resolved then there will be even more pressure on steel costs. We ordered steel back in the January/February time frame for delivery in April and May. We are just now starting to get the April stuff. This has put tremendous pressure on our manufacturing and shipping folks, not to mention our dealers and end customer/growers. At this point we are having to order steel with expected deliveries later this fall but we cannot lock in a cost, so we will just have to wait and see what our costs will be at that time,” said a Nebraska business.
More information:
The full text of the letter can be found here and below.
June 30, 2021
President Joseph R. Biden
The White House
1600 Pennsylvania Avenue, NW
Washington, DC 20500
Dear Mr. President:
For more than three years, we have highlighted the harm to U.S. businesses from tariffs and the trade war. While campaigning, you acknowledged this harm when you stated “American farmers, manufacturers and consumers” were “losing and paying more.” We agree, and we write to highlight the stories of many businesses that are seeking a de-escalation of the trade war and to urge your administration to eliminate tariffs and quotas that are harming so many businesses and consumers.
Many U.S. businesses have described the negative, unintended consequences of tariffs over the last three years. Unfortunately, it is difficult to find a U.S. industry that has not been negatively affected by tariffs and the trade war. These industries and businesses have faced increased costs, lost sales and market access, and competitive disadvantages due to the tariffs. Moreover, many businesses have described that the primary beneficiaries of the trade war are their foreign competitors that do not face the same tariff costs.
In addition to these competitiveness concerns, many businesses have been forced to make difficult decisions to keep their operations afloat. Some businesses have forgone expansions, productivity improvements or hiring new employees, and in some cases have had to lay off employees. We have heard from a number of manufacturers and businesses that have raised the price of their products to account for the sharp rise in cost of their materials and inputs, which has led to the loss of customers. Many farmers have lost access to growing markets and experienced significant price drops for their commodities, which has reduced profits. Many businesses have been forced to hire politically-connected lobbyists and seek assistance from legislators to navigate the complex and opaque tariff environment. It is simply wrong that so many businesses have suffered so that a few businesses may benefit.
It is necessary for your administration to evaluate the tariff experiences of the last three years and determine the policies that have worked and those that have not. As you have stated, the trade war has been damaging and disastrous to many U.S. businesses. We agree that the federal government must stop those actions that are damaging immediately. We also agree with your Administration’s strategy that seeks to work more closely with allies. We believe this must be the centerpiece of any successful efforts to build relationships and ultimately, to hold China accountable for human rights and trade abuses. An important first step would be to reduce the barriers to trade with our allies. By doing so, we can stop damaging actions and retaliation and mend relationships while listening to the businesses across the country that have suffered from the negative economic consequences. We urge the Administration to listen to the many stories of these businesses and end the self-inflicted harm from the trade war.