Some 3,500 U.S. Companies Sue over ‘Unlawful’ Tariffs on Chinese Goods

loyola llothta

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7 October 2020

Some 3,500 U.S. Companies Sue over ‘Unlawful’ Tariffs on Chinese Goods

About 3,500 U.S. companies, including Tesla Inc, Ford Motor Co, Target Corp, Walgreen Co and Home Depot have sued the Trump administration in the last two weeks over the imposition of tariffs on more than 300 billion U.S. dollars in Chinese-made goods.


The suits, filed in the U.S. Court of International Trade, named U.S. Trade Representative Robert Lighthizer and the Customs and Border Protection agency and challenge what they call the unlawful escalation of the U.S. trade war with China through the imposition of a third and fourth round of tariffs.

The legal challenges from a wide variety of companies argue the Trump administration failed to impose tariffs within a required 12-month period and did not comply with administrative procedures.

The companies challenge the administration’s “unbounded and unlimited trade war impacting billions of dollars in goods imported from the People’s Republic of China by importers in the United States,” according to a suit filed by auto parts manufacturer Dana Corp.

In a filing on Monday, Tesla called tariffs “arbitrary, capricious, and an abuse of discretion.” The carmaker wants the court to declare the duties unlawful and order a refund, with interest, amounts already paid.



Companies filing suit include heavy truck manufacturer Volvo Group North America, U.S.


auto parts retailer Pep Boys, clothing company Ralph Lauren, Sysco Corp, guitar manufacturer Gibson Brands, Lenovo’s U.S. unit, Dole Packaged Foods, a unit of Itochu Corp and golf equipment manufacturer Callaway Golf Co.

Home Depot’s suit noted it faces tariffs on bamboo flooring, cordless drills and many other Chinese-made products. Walgreen, a unit of the Walgreen Boots Alliance, said it is paying higher tariffs on products like “seasonal novelties; party, first aid, and office supplies; and household essentials.”

Lighthizer’s office did not immediately respond to requests for comment.

On September 15, the World Trade Organization (WTO) found the United States breached global trading rules by imposing multibillion-dollar tariffs in Trump’s trade war with China.

The WTO rejected the U.S. argument that the tariffs were applied to products it said had benefited from practices that the U.S. considers are contrary to “public morals,” like theft, misappropriation and unfair competition.

The tariffs, imposed in 2018, marked the beginning of the trade war between the world’s two largest economies.

(With input from Reuters)

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Some 3,500 U.S. companies sue over 'unlawful' tariffs on Chinese goods
 

aXiom

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Good no more making cheap crap overseas in order to sell it over here for a huge markup. Companies need to put people to work in North America. Instead of propping up Communist that will eventually turn on them. Idiot capitalists never learn.
I mean.. I feel you, but that ship sailed decades ago.
 

loyola llothta

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Good no more making cheap crap overseas in order to sell it over here for a huge markup. Companies need to put people to work in North America. Instead of propping up Communist that will eventually turn on them. Idiot capitalists never learn.
Wait did you read the article? The US Companies will not be moving businesses from China but suing Trump Administration for causing problems with the tariffs

it’s the US turning on China


On September 15, the World Trade Organization (WTO) found the United States breached global trading rules by imposing multibillion-dollar tariffs in Trump’s trade war with China.

The WTO rejected the U.S. argument that the tariffs were applied to products it said had benefited from practices that the U.S. considers are contrary to “public morals,” like theft, misappropriation and unfair competition.
 

JT-Money

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Wait did you read the article? The US Companies will not be moving businesses from China but suing Trump Administration for causing problems with the tariffs

it’s the US turning on China
The only reason they aren't moving out of China is their banking on Trump losing the election. If he wins the tarriffs will keep increasing until it forces most companies out. The ones who stay in China will eventually have all their intellectual property stolen. And then China will kick them out anyway.

These companies are doing the same thing when it comes to bringing in cheap foreign labor. They're suing the Government because they can't easily bring in cheaper workers now.
 

JT-Money

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I mean.. I feel you, but that ship sailed decades ago.
Not really. With this pandemic supply chains are under all kinds of pressure. So companies are moving supply chains closer to their customers. It's just gonna take awhile but it's even becoming too risky to ship product from overseas due to COVID.

There was a program on YouTube where they talked about shortages due to cargo ships being denied at ports all over the world.

This pandemic is gonna keep shrinking Global GDP for the foreseeable future until their is a vaccine. And once it's over people will look at China much differently than before. And wonder if the risks outweigh any rewards.
 

aXiom

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Not really. With this pandemic supply chains are under all kinds of pressure. So companies are moving supply chains closer to their customers. It's just gonna take awhile but it's even becoming too risky to ship product from overseas due to COVID.

There was a program on YouTube where they talked about shortages due to cargo ships being denied at ports all over the world.

This pandemic is gonna keep shrinking Global GDP for the foreseeable future until their is a vaccine. And once it's over people will look at China much differently than before. And wonder if the risks outweigh any rewards.
The jobs still aren't coming back state side though.. The wake up call that all other first world countries got from the pandemic was that having EVERYONE depend on China for manufacturing damn near EVERYTHING is a real problem.. I mean you don't have a be a brain surgeon to figure that out, but they all got to see how scary it was in practice.

What companies started to do was diversify their manufacturing to other developing countries. This is a slower process, and it's gonna take while to complete and it'll probably cost slightly more at first but it will even out in the end.. but compared to moving manufacturing back state side? It's still orders of magnitudes cheaper even when accounting for the end-to-end supply chain hit and the infrastructure spend. No company that benefits from cheap human labor and relaxation of worker conditions/laws is gonna bring manufacturing back state side while there are still billions of people who earn less than $3 for a full day's work.

A 10-15% increase in consumer pricing is a completely different ballgame than a 300%-500% one... and that's being conservative. These companies will exhaust/exploit every country with available cheap human labor before even dreaming of bringing those jobs state side while dumping huge amounts into automation R&D. When those jobs do come back they will not be done by humans.
 

3rdWorld

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Until they start finding ways to make shyt over here or find another country that can manufacture, they gonna keep running into problems. :francis:

No, Americans aren't going to make all that cheap crap or pay 10x the amount to have it made locally.

Trump is not a business man and cannot negotiate. That's the primary problem.
 

Knowledge

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Ok. You ready to pay 10k for iPhones? :mjgrin:
That's perfect for them. They dont speak broke remember. They could finance their phones while trying to clown android users

On the real though. Yall do realize when yall buy something "made in America" it sounds good but it was probably made with slave labor too right? Slave labor as in the prisons had something to do with it.
 
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As a manufacturing supply chain rep, I can say that I have seen ZERO permanent supply chain changes due to the tariffs. We just are eating the tariffs for now knowing they will eventually go away. They are a failure.

And any company that came to us to help out with domestic manufacturing has already made it abundantly clear that this is only temporary, as soon as covid shutdowns end they are moving everything right back into Mexico or China.
 
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