Washington—Senator Dianne Feinstein (D-Calif.) today called on President Biden to begin the process of unwinding the harmful effects that President Trump’s trade wars have caused, noting the cost of the previous administration’s tariffs have fallen overwhelmingly on U.S. families and businesses.

“I ask that you make tariffs a last resort to address trade disputes,” Senator Feinstein wrote. “As you know, the overwhelming share of U.S. tariffs are paid by American families and businesses. U.S. businesses are already struggling too much with the pandemic and a sluggish economic recovery without having to also cope with the burden of tariffs.”

Senator Feinstein continued: “I also applaud your commitment to a multilateral approach to addressing trade matters. The U.S. must stand against unfair trade practices that are a real problem, but it is wiser to stand with our allies who often share our concerns than to go it alone. Wherever possible, I ask that you seek agreements that mutually lower trade barriers while protecting critical priorities such as the environment, workers’ rights, and national security.”

Full text of the letter follows:

February 26, 2021

The Honorable Joseph R. Biden
President of the United States
The White House
1600 Pennsylvania Ave., NW
Washington, D.C. 20500

Dear Mr. President,As your administration conducts its review of U.S. trade policy, I ask that you focus on a new approach to step back from the ruinous trade wars of the past few years and also include key principles that will help American families and U.S. competitiveness.

First, I ask that you make tariffs a last resort to address trade disputes. As you know, the overwhelming share of U.S. tariffs are paid by American families and businesses. U.S. businesses are already struggling too much with the pandemic and a sluggish economic recovery without having to also cope with the burden of tariffs. This includes California’s wine industry, which is suffering from the impact of widespread and frequent wildfires as well.

The Congressional Budget Office estimated that the tariffs imposed in 2018 and 2019 would reduce real GDP by 0.5%, raise consumer prices by 0.5%, and reduce average real household income by $1,277. At a time when 10 million Americans who lost their jobs in 2020 remain unemployed, we cannot afford such a drag on the economy and families’ incomes. The proposals you made in your “Made in All of America” to invest in research, education, and infrastructure, as well as providing incentives to bring jobs back to America, are a better approach to boosting U.S. manufacturing than are tariffs.

I also applaud your commitment to a multilateral approach to addressing trade matters. The U.S. must stand against unfair trade practices that are a real problem, but it is wiser to stand with our allies who often share our concerns than to go it alone. Wherever possible, I ask that you seek agreements that mutually lower trade barriers while protecting critical priorities such as the environment, workers’ rights, and national security.

It is time to end the trade wars that have so harmed U.S. families and businesses and take a strategic, long-term approach to improving U.S. competitiveness in international markets. I look forward to working with your administration on trade policy and ask that you feel free to call on me anytime I can be helpful.

Sincerely,

Dianne Feinstein
United States Senator