The Consumer Electronics Association is publicly urging members of the United States Senate to vote "no" on legislation proposed by Senators Chuck Schumer (D-NY) and Lindsay Graham (R-SC) that seeks to address China's currency policy by imposing a 27.5 percent tariff on imports from China.
According to the CEA, the Schumer/Graham approach is tantamount to a tax on American consumers and businesses, since the cost of the tariff would likely be passed on to those purchasing Chinese imports. For example, today's average price of a flat panel television is $1,295 but would increase to $1,651 with the proposed tariff; an MP3 player's average price today is $218 but would increase to $277; and, a digital camera's average price today is $299 but would increase to $381.
The tariff would actually be counter-productive to a more meaningful reform, CEA Vice President International Elizabeth Hyman argues. "CEA agrees that ideally the market should determine the exchange rate, but facilitating progress through sector reform, rather than external tariffs, would help strengthen China's financial infrastructure, a step required before its currency can float freely.
For more information, visit www.ce.org.
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