Tariffs hurting Floridians Trump is trying to help

The 2020 presidential election is more than 16 months away, but campaign season is already in full swing, especially here in Florida. Earlier this week, President Trump officially kicked off his reelection campaign in Orlando and 20 Democratic candidates are getting set to take the stage for the party’s first debate in Miami next week.

The reason for this level of campaign activity in our state at such an early stage is simple: Florida is one of the most important states to win for candidates seeking to be reelected or elected President of the United States.

As we wait for the Democratic presidential hopefuls to make their cases on June 26-27, it’s clear that the economy will be a core message of the Trump campaign, and rightfully so. Since Trump took office, the economy has grown stronger and unemployment has declined to historic levels — trends that are being aided by his administration’s pro-business policies.

Despite this momentum, I remain concerned that the president’s continued use of tariffs as a tool to address trade deficits and hold our trading partners accountable will undermine all the economic progress achieved during his tenure. Tariffs — ranging from taxes on components and materials to subsequent retaliatory measures — and the global trade conflict are top concerns among one of Florida’s largest industries, recreational boating.

In Florida alone, businesses have faced a whopping $178 million in retaliatory taxes on our exports — including marine manufacturers like our company, Correct Craft — making the goods produced in our state less globally competitive, which threatens nearly 6,000 Floridian businesses and 100,000 jobs supported by our industry. When you factor in the added manufacturing costs from tariffs on parts and raw materials, the problem is only exacerbated.

Tariffs are nothing more than an import tax — an additional fee that American businesses pay to the federal government in order to import certain goods. That means these tariffs are hurting American businesses by raising the cost to do business and penalizing American families by simultaneously driving up the cost of countless consumer products.

Last fall, I was at the White House and told by staff that tariffs are meant to be a short-term negotiating tool to bring our more reluctant trading partners to the table and position the U.S. for a better deal. However, those of us dealing with them, know tariffs can have a long-term impact on supply chains. It takes months — sometimes years — to develop a trustworthy supply chain and is even more complex when you are dealing with international vendors. Even short-term disruptions in supply chains can take years to recover from. In some instances, businesses may lose a much-needed supplier to a competitor for good.

Some aspects of the trade war are starting to take a positive turn for our industry. In May, the U.S. lifted aluminum and steel tariffs on Canada and Mexico, and in turn, Mexico ended retaliatory tariffs on U.S. boats — following the same action from Canada just two weeks prior. However, the European Union’s (EU) retaliatory tariffs remain in place, which have been particularly devastating for boat builders, considering the EU is our second-largest export market.

Unfortunately, striking a deal with China that addresses long running concerns and deescalates the tit-for-tat tariff volley has proven elusive. But there is an opportunity for both sides to reach an agreement when Trump and President Xi of China meet on the sidelines of the G-20 summit in Japan next week.

As a previous co-chair of a committee that advised the U.S. Secretary of Commerce on tax and trade, I understand that China has engaged in unfair trade practices for years, such as flooding the market with cheap steel and aluminum, stealing U.S. intellectual property, and manipulating its currency.

We need our leaders in Washington to address China’s behavior head on, but it’s now time to “close the deal.” Now that we have used a tariff heavy strategy to bring everyone to the table, lets forge a comprehensive agreement and get back to a more predictable business environment.

Most will acknowledge that the economy has improved during the Trump administration. On the other hand, the president’s unwavering use of tariffs is jeopardizing the pro-business momentum he’s achieved and could have a lasting impact on Florida’s economy, hurting the same people his policies are intended to help. And Floridians will be closely monitoring the issue of tariffs as the 2020 campaign continues.

Bill Yeargin is the president and CEO of Correct Craft