Joe Murphy is the senior vice president of government relations and public policy at the Greater Des Moines Partnership. He wrote this piece following news this morning that China had proposed countertariffs to the U.S. tariffs taking effect today. The Business Record sought responses from area leaders and other pieces may be published at a later time.

International trade and access to markets are critically important not only to Greater Des Moines, but to the entire state. As outlined in the Greater Des Moines Partnership’s 2018 Federal Policy Agenda, we must continue to push for pro-trade policies that benefit Iowa companies.

The recently announced tariffs imposed against China by the Trump administration will likely result in increased prices on many products and materials used across a wide variety of industries including agriculture, technology and manufacturing.  Retaliatory tariffs on U.S. products, which China has already announced, will additionally increase costs for businesses. In the short term, this action will likely result in cancelled orders and a loss of revenue for Iowa companies. Over the long term, the real possibility exists for jobs to be eliminated because of this new round of tariffs.

More than 450,000 Iowa jobs are supported by trade. The disruption of trade relationships across the world economy will no doubt have a major impact here at home. In a recent estimate by the U.S. Chamber of Commerce, total state exports threatened by new tariffs approach $1 billion of value.

Iowa’s economy depends on access to markets. In 2016, Iowa exported more than $12 billion in manufactured and value-added goods. Foreign markets represent 75 percent of the world’s purchasing power, 92 percent of its economic growth and 95 percent of its consumers representing a tremendous opportunity for Iowa businesses.

Certainly, there are issues that need to be brought to the forefront with respect to unfair trade practices, but we believe we can collectively find a better approach. At the most basic level, tariffs equate to tax increases on American businesses and consumers.  

The Greater Des Moines Partnership continues to work with our members, congressional delegation, administration officials and other stakeholders to draw attention to find common ground solutions to benefit Des Moines companies.