A trade group representing top technology companies on Monday urged US President Donald Trump to use pressure against China instead of tariffs to try to change the latter's unfair trade practices.
The Information Technology Industry Council said in a letter to US Treasury Secretary Steven Mnuchin that it supports the US investigation into China’s abuses of intellectual property, but instead of tariffs, it advocates a coalition to put pressure on Beijing.
“Our opposition to tariffs is pragmatic. Tariffs do not work, instead they increase costs for American consumers, harm the American economy, inhibit job growth, and are inevitably reversed because of the negative economic impacts and political fallout” wrote ITIC President and CEO Dean Garfield.
“Instead of tariffs, we strongly encourage the administration to build an international coalition that can challenge China at the World Trade Organization and beyond,” Garfield added.
Trump suggested Sunday that Beijing will ease trade barriers "because it is the right thing to do."
However, on Monday Trump criticised what he described as "stupid trade" with China, tweeting: "when a Chinese-made vehicle is sent to the US, the tariff is only 2.5 per cent, while American cars exported to China are slapped with a 25 per cent tariff. Does that sound like free or fair trade. No, it sounds like stupid trade."
Last week, Washington and Beijing announced retaliatory tariffs, as China has vowed last Friday to fight "unilateral US protectionism at any cost."
