Several leading US manufacturers, including Intel, Dell Technologies, Ford and Honeywell Aerospace, have urged the Office of the United States Trade Representative (USTR) to reconsider its call for an additional tariff imposition of up to 12.5 per cent on imports from around 60 countries, including India.
The companies argue that the proposed duties could raise production costs, weaken manufacturing competitiveness, eventually increasing prices for businesses and end-users.
The recently proposed tariff framework forms part of the US administration’s broader strategy to strengthen domestic manufacturing and reduce reliance on overseas supply chains. However, several companies contend that higher import costs on critical industrial inputs may have the opposite effect.
Intel believes that this measure would make domestic manufacturing much more expensive than encouraging local production.
“The practical effect would be to make it more expensive to build in America than to build elsewhere, which runs directly counter to the administration’s goal of expanding domestic manufacturing,” the company noted.
Dell Technologies echoed similar concerns, urging the implementation of regulations that would effectively reinforce industrial growth without causing supply chain disruptions.