Trump tariffs to restrict GDP growth by an average of 0.1% per year for the next decade if they remain in place
While the marine and other industries in the US have felt the impact from the so-called trade war for more than a year, the implications are starting to echo through the rest of the US economy, and the National Marine Manufacturers Association (NMMA) is reminding both its members and members of Congress to quickly negotiate and pass long-term free trade agreements.
According to a recent report from the non-partisan Congressional Budget Office (CBO), the Trump administration’s tariffs will restrict US GDP growth by an average of 0.1% each year for the next decade if they remain in place.
The US has been in various disputes with its major trading partners, including antidumping and countervailing duties on aluminium sheet; Section 301 tariffs on hundreds of commonly used marine products and materials; and Section 232 tariffs on aluminium and steel, resulting in retaliatory tariffs on US boats from its top export markets.
The NMMA sees the two largest priorities as ratification of the US-Mexico-Canada Agreement (USMCA) and addressing Section 232 tariffs on Canada and Mexico and subsequent retaliation, and it’s not alone.
According to the trade group, House Ways and Means Committee member Kevin Brady, a Texas republican, said USMCA will have a difficult time receiving Congressional approval unless steel and aluminium tariffs on Mexico and Canada are removed.
US Secretary of Commerce Wilbur Ross recently stated that a comprehensive deal with China was a long way off, which NMMA fears creates uncertainty whether existing Section 301 tariffs will remain, increase, or if an exclusion process will be provided. The US and China are roughly 30 days away from their self-imposed deadline to reach an agreement addressing both countries’ grievances.
Simultaneously, a bi-partisan group of House and Senate law makers are preparing legislation to provide a check on the administration’s ability to impose Section 232 tariffs for national security reasons, while a small group of House republicans recently introduced legislation to grant the president additional tariff powers.