August 2, 2018
Speaker of the House Paul D. Ryan Senate Majority Leader Mitch McConnell
The House of Representatives U.S. Senate
Washington, D.C. 20515 Washington, D.C. 20510
House Democratic Leader Nancy Pelosi Senate Democratic Leader Charles Schumer
The House of Representatives U.S. Senate
Washington, D.C. 20515 Washington, D.C. 20510
Dear Speaker Ryan, Minority Leader Pelosi, Majority Leader McConnell and Minority Leader Schumer:
On behalf of the Computing Technology Industry Association (CompTIA), the Technology Councils of North America (TECNA) and our State Tech Council Alliance Partners (the undersigned technology organizations around the country), we urge Congress to act now to roll back the ill-conceived tariffs. We also urge the U.S. to continue negotiations with China to advance our shared goal of changing China’s harmful trade practices.
There is no doubt that tariffs and the continued gamesmanship over trade will create irreparable harm to America’s tech companies, the 11.5 million Americans that work in tech occupations, and the millions of consumers who rely on affordable technology in their daily lives. Tariffs on imported goods from China will result in higher costs for American manufacturers and suppliers, decrease the overall global competitiveness of U.S.-based tech firms and create real harm to the overall U.S. economy.
Tech companies are a key driver of the United States’ current economic growth, with the industry accounting for about 7.2 percent of the overall U.S. economy and tech exports directly supporting more than 800,000 American jobs, according to our research. In the Asia and Pacific region, China is the largest market for U.S. tech exports, and U.S. tech exports to China reached an estimated $19 billion in 2016, an increase of approximately 3.9 percent year-over-year since 2007.
Yet, the Administration’s tariff lists include technology products such as integrated circuits, semiconductor devices, thermometers, motion sensors, electronic testing tools, printer parts, connected devices, networking equipment, hard disk drives, among others. Many of these products are designed, developed, and manufactured in the United States by innovative U.S. companies, and are being used in innovative ways by U.S. consumers to enhance their security, productivity and health. Imposing duties on these U.S. manufactured products will be counterproductive to consumers and companies. The U.S. government should not punish American companies with a tax. This is a misguided and ineffective attempt to change China’s policies.
The harm these tariffs represent is no longer theoretical. Already, our companies and U.S. consumers are facing higher costs, and we fear that continued threats to levy additional duties are likely to become a reality. There is a better way to achieve the results the Administration is seeking.
As representatives of thousands of technology companies of all sizes who are impacted by the Administration’s use of tariffs in its trade dispute with China, we urge you to find a solution that reverses these tariffs before they cause any more harm to our economy and U.S. competitiveness around the world.
There is no doubt our trade agreements need to be updated, and China needs to be held accountable for its unfair and illegal practices. But rather than imposing tariffs that punish American companies, workers, and consumers, the U.S. should develop a sensible negotiating strategy that can more effectively address the longstanding trade challenges with China and that includes collaboration with our allies who face the same challenges in China.
Sincerely,
Elizabeth Hyman Brooks Raiford
Executive Vice President, Public Advocacy Chairman, Public Policy Committee
CompTIA TECNA
Alabama
Tech Birmingham
Arizona
Arizona Technology Council (AZTC)
California
California Technology Council (CTC)
CONNECT
Tech San Diego
Colorado
Colorado Technology Association
Connecticut
Connecticut Technology Council (CTC)
Idaho
Idaho Tech Council (ITC)
Illinois
Illinois Technology Association (ITA)
Iowa
Technology Association of Iowa (TAI)
Kentucky
Technology Association of Louisville Kentucky (TALK)
Maryland
Maryland Tech Council
Massachusetts
Massachusetts Technology Leadership Council (MassTLC)
Missouri
KC Tech Council
Minnesota
Minnesota High Tech Association (MHTA)
Montana
Montana High Tech Business Alliance
New Hampshire
New Hampshire High Tech Council (NHHTC)
New Jersey
New Jersey Tech Council (NJTC)
New Mexico
New Mexico Technology Council
New York
NY Tech Alliance
North Carolina
North Carolina Technology Association (NCTA)
North Dakota
Technology Council of North Dakota
Ohio
OHTech
Oregon
Technology Association of Oregon (TAO)
Pennsylvania
Philadelphia Alliance for Capital & Technologies
Pittsburgh Technology Council
Tennessee
Chattanooga Technology Council
Nashville Technology Council
Texas
Austin Technology Council (ATC)
Tech Titans
Utah
Utah Technology Council
Washington
Washington Technology Industry Association (WTIA)
Wisconsin
Wisconsin Technology Council
Cc: Ways and Means Chairman Kevin Brady
Senate Finance Chairman Orrin Hatch
Ways and Means Ranking Member Richard Neal
Senate Finance Ranking Member Ron Wyden
