Trade Agreements Over Tariffs Would Benefit US Manufacturers and Consumers

An expert says trade agreements, not tariffs, can bring economic benefits to U.S. producers and consumers. China recently raised its tariffs on U.S. goods from 84% to 125%, sparking concerns about a global economic slowdown.

Jason Oxman, president and CEO of the Information Technology Industry Council, believes that entering into actual trade agreements is crucial for the long-term success of American companies. He emphasized the importance of having access to global markets for U.S. manufacturing, innovation, and job creation.

"95% of the world's consumers live outside of the U.S. So for the economic success of American companies, having access to global markets is incredibly important," Oxman said. "If we can move forward to entering into trade deals with our partners around the world, that would be great for U.S. manufacturing. Great for U.S. innovation, great for U.S. job creation."

Oxman also noted that supply chains are global and that companies will have to make decisions on their pricing based on input costs. He prefers a more cooperative approach, stating that tariffs are no replacement for trade agreements.

"Tariffs are a tool and in some cases can be useful. But they are no replacement for trade agreement. So the ideal scenario, as you noted, is we get back to negotiating trade deals with our partners, so that the EU and other international partners around the world see the United States as an ally in economic relations and that U.S. companies have access to those international markets."