O P I N I O N
THE SOAPBOX
Stand up. Speak up. It’s your turn.
More than three years ago, the Trump administration launched a bevy of tariffs on a broad range of imports from China and other U.S. trading partners, claiming that the new trade war would provide a manufacturing boost to states like New Hampshire. While there is a need for our policymakers to hold China accountable, this is not the way to do it.
The truth, however, is as clear now as it was then: tariffs don’t help the American economy; they hurt it. Tariffs aren’t paid by China or any other foreign government we hit with these duties. They are paid by American companies who rely on imports to help them do business here, with the knock-on effect that American workers and consumers end up paying the cost through higher prices and slower job growth. It’s a counterproductive strategy that only ends up hurting people right here in the U.S., who have now also been dealing with the economic impact of the COVID-19 pandemic for over a year.
To date, the trade war with China alone has cost American companies north of $80 billion, according to U.S. Customs and Border Protection, losing the U.S. economy almost 250,000 jobs. The damage can be pronounced for a state like ours, where almost 12% of our economy hinges on manufacturing and trade.
China is one of our state’s biggest export markets – we exported $368 million worth of goods to China alone in 2018 – which means the back-and-forth tariffs that have defined much of the trade war had a direct impact on Granite Staters. Of course, as we were battered by the trade war with China, we were also contending with high tariffs on steel, aluminum, lumber, and more imported from Canada and Mexico, two of our state’s other largest trading partners.
The situation grew dire enough that last fall, Governor Chris Sununu joined Maine Governor Janet Mills and Vermont Governor Phil Scott to call on former President Trump to end aluminum tariffs imposed on goods imported from Canada, citing the “artificial inflation” that the tariffs create. The trade war with China has had the same effect, and President Joe Biden should prioritize relieving the American economy of the devastating effect of the tariffs that are still in place.
President Biden and United States Trade Representative Katherine Tai have promised an approach to trade that is greener and more worker-friendly than before, but that is only possible if they eliminate the tariffs still in place on imports from China and free businesses of the costs that are inhibiting innovation and job creation.
Thankfully, New Hampshire has advocates in Senators Jeanne Shaheen and Maggie Hassan, who have long voiced concerns about the dangers that tariffs pose to American workers and businesses. Senator Shaheen, for example, pointed out at the start of the trade war that trade wars aren’t good for anyone. More recently, she’s stood up for businesses struggling to maintain exclusions they’ve already received from tariffs. Similarly, Senator Hassan has spoken about the need for an effective exclusions process.
Senator Shaheen is right: endless trade wars don’t do anyone any good. I hope she will continue to advocate for the Biden administration bringing this failed trade policy to an end. That way, our state’s economy can live up to its full potential, and New Hampshire’s core industries can thrive. She and Senator Hassan have both shown they understand how harmful the last administration’s tariffs have been. I have confidence they will continue to stand up for New Hampshire businesses.
We do need to be tough on China because as President Biden said last month, “We are in competition with China and other countries to win the 21st century…we have to compete more strenuously. However, tariffs have a real, tangible impact on New Hampshire’s families, businesses, and industries, many of which are only just starting to see the light at the end of the tunnel after the COVID-19 pandemic tore through the economy. By repealing the tariffs, President Biden and Ambassador Tai can ensure they don’t hold that recovery back.
Beg to differ? Agree to disagree? Want to get on your own soapbox about a topic of local interest? Send submissions to publisher@manchesterinklink.com
Rep. Jeff Goley (D-Manchester) represents Hillsborough District 8 and serves on the New Hampshire House Committee on Executive Departments and Administration Committee.
