This week, the Consumer Technology Association (CTA)® hosted Americans for Free Trade, a coalition of American businesses, trade organizations and workers for a discussion on how tariffs on imports impact the U.S. economy, industries, workers and consumers. The discussion, moderated by Politico Senior Trade Reporter Doug Palmer, brought together experts from four leading think tanks, including:

• Ed Gresser, vice president and director for trade and global markets at the Progressive Policy Institute
• Christine McDaniel, senior research fellow at the Mercatus Center at George Mason University
• Tori Smith, director of international economic policy for the American Action Forum
• Zach Moller, director of the economic program for Third Way

The speakers shared their perspectives on the trade war, the impact of tariffs on the U.S. economy, and the potential path forward for the Biden administration as it conducts its four-year review of the Section 301 tariffs the previous administration imposed on imports from China.

Although the tariffs were supposed to address China’s unfair trading practices with respect to forced technology transfer and theft of U.S. intellectual property, the experts agree that the tariffs are not changing China’s behavior and are instead hurting American businesses and consumers.

"The wide consensus of economists is that consumers eventually pay the tariff," Gresser said.

And, when asked who would benefit the most by removing and eliminating tariffs, McDaniel said, "Definitely the U.S. worker, the U.S. business, the U.S. consumer, the U.S. economy. That's a no-brainer."

Given the significant impact of rising costs to consumers, businesses and the economy, inflation was a central part of the discussion. Recent CTA research shows that inflation is top of mind for consumers, with 68% saying inflation is the most important issue facing them and their households. Speakers referenced recent research from the Peterson Institute for International Economics that shows the ways lifting the tariffs could help reduce inflation.

“We cannot talk about tariffs today without talking about their impact on inflation," Moller said. “We need to be fighting inflation literally every way we can.” He added that lowering tariffs is one way the Biden administration could act on inflation, saying, “I'm frankly surprised we haven't seen more action on it."

Tariffs contribute to inflation and rising costs on a range of inputs that are used to make consumer technology products, vehicles, clothing and many other goods. This is especially felt by the technology industry and consumers who depend on technology in their daily lives.

Although the speakers have different perspectives on the best path forward, there was consensus on one point: the tariffs are unsustainable.

“I think it's obvious to say that it's time for these tariffs to go,” Smith said. “We know that tariffs are taxes on you and me.”

Whether it is through full elimination, a renewed exclusions process, broader collaboration with our allies or other means, speakers agreed that the tariffs are ineffective at giving the U.S. a competitive advantage with China, and that they have long overstayed their welcome.

While the future is unclear for the tariffs that are still in place, businesses in the technology industry and other sectors across the U.S. economy will be closely watching to see what comes of the Biden administration’s four-year review.

View video of the discussion.