Tariffs, most economists would agree, act to restrict imports of the item targeted by the border tax. A US tariff on Chinese-made port cranes will be indiscriminate — hurting exports as well as imports, and boosting costs for the government, companies and consumers.
Source: US Ports Warn White House of ‘Grave’ Economic Risks With China Crane Tariff
fta; highlights mine.
In letters to the US Trade Representative Katherine Tai last week, ports in California, Florida, South Carolina, Texas and Virginia said there are no viable alternatives to Chinese cranes.
The association said that it knows of seven domestic ports that are under contract to buy at least 35 Chinese ship-to-shore cranes. Using an average price per crane of $15 million, the tariff will create additional costs to the port operators totaling $131.3 million, the association said. That means the tariffs will either discourage expansion plans or force cuts to existing projects, it said.
