Velázquez Remarks at Press Conference on Trade and Small Business

Press Release

Today House Small Business Committee Chairwoman Nydia M. Velázquez (D-NY) spoke outside the Capitol alongside small business owners and her fellow committee members to draw attention to the consequences of the President's trade war with China on America's small businesses. Below are her remarks, as prepared for delivery:

"We are here today because America's small business are hurting. And as Members of the House Small Business Committee, it is our job to make sure that our small farmers, manufactures and other Main Street businesses are heard in the halls of Congress.

"Last week, China announced plans to retaliate against President Trump's erratic trade war by placing tariffs on $60 billion in U.S. goods. What was the President's response? He boldly proclaimed, "there is no reason for the U.S. consumer to pay the tariffs.' Well, it seems our President has a fundamental misunderstanding of how tariffs actually work.

"He believes China will pay for the trade war. But in fact, it's our small businesses that are now paying an unnecessary tax on the products they rely on to serve communities across this country. And if we continue on this Administration's path, things will only get worse.

"Mr. President, look at our family farmers who are seeing the value of their products drop. Look at the small manufacturing business that is facing the heart wrenching decision between having to raise prices or lay off workers. Because of this trade war, they are not better off. They are the ones paying the price.

"In fact, there are currently over 280,000 small businesses exporting their goods, with many of those exports going to China and other key trading partners. In turn, countless small businesses rely on products from overseas to manage their supply chain and manufacture their products.

"That is why today, I'm announcing that I, along with several of my colleagues on the Small Business Committee, have just sent a letter to the Administration to tell them that by escalating tensions with one of our top trade partners, they are creating needless uncertainty and instability for our small businesses and our economy.

"And it is why I am proud to be standing here alongside small businesses owners like Clifton, Bill and Adam, who are here to share their stories of how this trade war is hurting their business and livelihoods.

"When we look at the numbers, we see that one estimate by Oxford Economics, shows Trump's latest increase of 25% tariffs on half of U.S. imports from China, will cost the average American household nearly $500 dollars. If the President's plan to expand tariffs on all U.S. China trade becomes a reality, that number will grow to $800 per household.

"This could also deliver a serious blow to our job market. Economists are predicting 200,000 fewer jobs and economic growth declining below 2% in early 2020 under the President's current tariffs on China. This is not even considering the undeniable harm that China's proposed $60 billion in retaliatory tariffs will cause.

"Here we see the real costs of the President's trade war, with a dramatic rise in just the past year showing how businesses are being asked to foot the bill. In the span of just one month, from September to October of 2018, prices on U.S. companies grew from $4.4 billion to $6.2 billion due to the Administration's tariffs.

"So in all the coverage of this trade war, let us not forget that this is a small business issue. It is a matter of basic survival for too many small firms, and the games have got to stop.

"The President must end his feud with China and come to the table to provide our Main Streets with the stability and prosperity they deserve. After all, they are the bedrock of our economy and we owe them better than this."

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