U.S. trade groups operating global supply chains continued this week to push back against Trump Administration plans to jumpstart the domestic shipbuilding sector by penalizing ocean carriers that use Chinese-built ships, according to the Intermodal Association of North America (IANA).
That message comes from a group of more than 30 organizations representing a range of ocean-going shipping supply chains, that today released a report titled “The Economic Effects of Proposed Action in the Section 301 Investigation of China’s Maritime, Logistics, and Shipbuilding Policies and Practices.”
That paper comes in advance of a hearing scheduled this week by the Office of the U.S. Trade Representative (USTR) on “Proposed Action in Section 301 Investigation of China’s Targeting of the Maritime, Logistics, and Shipbuilding Sectors for Dominance.”
The group’s assessment concludes that: “a comprehensive assessment of the various remedies suggested by USTR finds that in every case they would result in net losses for the U.S. economy, U.S. trade, and most of the U.S. shipbuilding supply chain. The proposed remedies, individually and in aggregate, would reduce U.S. GDP and likely worsen the overall U.S. trade deficit.”
More specifically, the study found that:
- While the U.S. shipbuilding industry might benefit, other sectors like farming, manufacturing and retail would suffer significantly.
- U.S. agriculture exporters and workers would be hit hard, with major crop exports dropping dramatically, losing competitiveness to countries like Brazil, Canada, Russia and Australia.
- Energy exports and goods from various manufacturing industries would decline due to higher shipping costs and reduced trade.
- U.S. ports and related sectors would face negative impacts on output and employment.
- The negative effects would ripple through supply chains, affecting manufacturers, importers, retailers and other stakeholders like wholesale and retail trade, hospitality and consumer services industries.
That resistance to the White House echoes previous messages from other U.S. trade groups predicting harsh business fallout if the plan is implemented, including dozens of furniture trade associations, according to published reports.
