Senators Threaten China With Tariffs

Las Vegas Sun ^ | 9.09.03 | By Mary Dalrymple

[riri]

WASHINGTON (AP) - A group of Republican and Democratic senators said Tuesday they will push for tariffs on imports from China if the Chinese government does not take steps toward letting its currency float freely on world markets.

"It's a shot across the bow," said Sen. Jim Bunning, R-Ky.

Chinese goods would face a 27.5 percent American tariff and China would lose its special trading status under the senators' bill, designed to prod China into changing its currency practices.

The lawmakers argue that China unfairly undervalues its currency, making goods produced in China less expensive and making foreign imports too costly for Chinese consumers.

The Chinese yuan has been fixed at about 8.28 to the dollar since 1994. It is allowed to fluctuate, but only in tiny increments and in trading closely regulated by official agents. Lawmakers and some economists say the fixed rate may be 15 percent to 40 percent less than the currency's value.

Sen. Richard Durbin, D-Ill., said the fixed currency gives China an unfair trade advantage and draws manufacturing jobs away from the United States.

"The Chinese are using currency manipulation as a lethal loophole for America's manufacturing jobs," he said. "It is tantamount to imposing a tariff on American products because of their manipulation of their currency."

U.S. manufacturing has lost nearly 16 percent of its work force, or 2.7 million jobs, in a record 37 straight months. Another 44,000 jobs were lost last month.

China maintains that a stable yuan benefits both nations and makes good financial sense. China's premier offered Treasury Secretary John Snow no promises when Snow traveled to Beijing in July to press Chinese officials on their currency policies.

The senators said they hoped their bill imposing tariffs will see action next month if China does not take steps toward letting the value of its currency fluctuate more freely.

[riri]

ping

[spam_bank]

Both countries are in the WTO. There's no way a tariff can be legally imposed. These senators are just blowing smoke.

[Blood of Tyrants]

Empty threats. The Chinese policy was exactly the same when they voted to give them permanent MFN trading status.

[MikeAnon222]

I honestly wish I knew more about the US-Chinese trading relationship. I read the news all the time and do research on many different topics but for some reason I dont find this topic that interesting. I know it effects many people. Heck - I am a software developer and have been effected by the exodus of jobs to india.

One side of the argument is the Chinese subsidize our goods via cheap labor and cheap currencies but the other side of the story is serious employment pressures in the US.

[Russell Scott]

Something we should have been doing all along. The problem now is after giving nations tariff free rides for so long, we get them angry with us if we impose them. Tariffs could provide much needed revenue for many things. Its too bad free trade means we get the short end of the stick. Fair trade would ALWAYS include tariffs to keep things in balance, no matter who we are trading with. But it needs to be the policy from the outset.

[scottlang]

I applaud these Senators, I hope that they mean it. And I will be writing to my senators, representative, and GWB to ask that they support this as well.

[riri]

Question is--who are the senators?

[GraniteStateConservative]

ping

[scottlang]

Cornyn and Hutchison, I am in Texas. And yes a large amount of stink will have to be raise to get action on this. We need to start now if we want this.

The American worker can compete and win against anybody on a level playing field. I believe it is the job of the US Government to make sure the field is level.

[wimpycat]

http://www.just-style.com/news_detail.asp?art=31255

I found this article on a textile interest website that mentions the Senators are Elizabeth Dole (good afternoon, billbears!)(R-NC), Lindsey Graham (R-SC) and good ol' Chuckie Schumer (D-NY). This article doesn't mention Dick Durbin, but I would assume all of these Senators are involved. I know why Dole and Graham are involved: NC and SC have lost a lot of textile jobs overseas.

[riri]

If anything came of this would GWB veto?

[scottlang]

If anything came of this would GWB veto?

If he does, Then I think we will need a new president.

[harpseal]

Ping

On or off let me know

[anniegetyourgun]

Something does need to be done about their currency fixing, but I'm not sure this is the answer.

[taxed2death]

Hey, fair is fair right? We should employ the same 40% - 50% tariff that they put on our goods made here in the US and shipped there.

[warchild9]

Sounds to me like some senators are fishing for overseas re-election campaign contributions.

[b4its2late]

Senators Threaten China With Tariffs

I'm sure that'll scare them.

[ex-snook]

Go Pat Go