The flag proposal is one of hundreds of tariff proposals that U.S. Trade Representative Jamieson Greer is considering when deciding whether to impose new tariffs.
President Trump threatens EU with higher auto tariffs amid trade tensions
President Donald Trump has threatened to raise tariffs on European Union cars to 25%, claiming the European Union is “not abiding by trade agreements.”
WASHINGTON – U.S. flag manufacturers say half of the American flags sold in this country are made in China and are calling on the Trump administration to impose huge new tariffs on imports rather than wave the white flag after the Supreme Court overturned emergency tariffs.
“The Star-Spangled Flag, one of America’s most recognized and sacred symbols, is being produced overseas and pushed into the U.S. market at prices that domestic manufacturers cannot match,” said Jen Christiansen of Flag Source, a Batavia, Illinois, manufacturer.
The flag is just one thread woven into last year’s $1.2 trillion trade deficit with other countries, which President Donald Trump is trying to close with tariffs to raise government money and encourage manufacturers to locate plants in the United States.
Public hearings on whether to impose additional tariffs resume this week
U.S. Trade Representative Jamison Greer is sorting through hundreds of proposals in a hearing on whether to impose new tariffs based on accusations of unfair trade practices abroad.
Mr. Greer heard from 60 witnesses last month about allegations that overseas manufacturers rely on forced labor to produce cheaper products. The investigation focused not only on adversaries such as China and Russia, but also on allies such as Australia, Canada, the European Union, the United Kingdom, Israel, India, Qatar, and Saudi Arabia.
A hearing will begin May 5 on accusations that other countries produce more products than they need to sell in the United States at lower prices than comparable domestic manufacturers.
For example, the U.S. Sugar Alliance said the industry is “threatened by a glut of low-cost foreign imports that the policy has flooded global markets with.” Countries such as Brazil, El Salvador, Argentina, Colombia and Costa Rica have dramatically increased sugar production since 2021, according to census data.
But Chicken of Sea International told the government to leave canned tuna alone. The company, a subsidiary of Thai Union Group, said the tariffs would jeopardize its $20 million processing facility in Lyons, Georgia, which prepares, cleans and packs 10% of all canned tuna in the United States.
Airlines also opposed tariffs on the airline industry. About 70 percent of the industry, including aircraft manufacturing, engines and other parts, is dominated by U.S. companies such as Boeing, and exports last year exceeded imports by $93 billion. But airlines don’t want to discourage competitors such as French aircraft maker Airbus.
“The United States does not need to adjust the 30%,” the industry group Airlines for America said.
President Trump lowers tariffs on Scottish whiskey during royal visit
The hearing comes at the same time that President Trump is threatening to increase tariffs on cars and trucks from the European Union to 25% from the 15% negotiated as part of the trade deal. President Trump claimed that European countries were breaking the agreement signed last July because it had not yet been finalized. European countries are scrambling to conclude agreements to avoid rising fees.
The Supreme Court invalidated President Trump’s emergency tariffs on countries around the world under the International Emergency Economic Powers Act of 1977. However, other statutes allow the president to temporarily impose tariffs under one section of the Trade Act of 1974, combat unfair trade practices under another section of the Trade Act, and respond to national security threats under the Trade Expansion Act of 1962.
President Trump told a meeting of small business leaders at the White House on May 4 that the Supreme Court’s decision was “unfortunate” and “terrible,” but the “good news” is that tariffs can be imposed “in other ways.”
Regarding raising tariffs on Chinese imports, President Trump said, “There are other ways to impose tariffs.” “It’s a little more complicated. I like to keep it as simple as possible. In many ways, it’s better that way.”
While considering these options, President Trump lifted tariffs on Scottish whiskey during a visit by King Charles III last week. President Trump had imposed a temporary 10% tariff in response to a Supreme Court ruling, but lifted the tariff on alcoholic beverages to encourage trade between Scotland and Kentucky.
President Trump’s decision comes after U.S. alcohol exporters reported sales fell by more than $90 million last year as Canadians pulled U.S. spirits from shelves and Europeans imported less, according to a March report from the Distilled Spirits Council of the United States, an industry group.
The American Distilled Spirits Alliance called on Greer to exclude alcoholic beverages from the new tariffs.
“Distilled spirits are artisanal products that are geographically distinct and governed by strict legal identity standards,” said Amanda Nguyen, CEO of the alliance. “They are not manufactured goods that are subject to overproduction concerns. Bourbon cannot be made in France, and cognac cannot be made in Kentucky.”
Manufacturers ask President Trump not to wave the white flag
Nearly all of the 6 million U.S. flags imported each year are manufactured in China, according to industry groups such as the American Flag Manufacturers Association and the National Association of Independent Flag Dealers.
Imported Old Glory flags typically sell for $8 to $20, compared with $30 to $48 for U.S.-made flags, according to industry groups. Manufacturers are encouraging the administration to impose tariffs of 300% to 500% to counter the flood of imports into the U.S. market.
The current tariff on Chinese flags is 24.5%. Christiansen said that without “decisive and aggressive action,” imports from China “will continue to hurt American manufacturers.” The manufacturer employs 5,000 workers and could see shifts cut or factories closed.
China’s Textile Export-Import Chamber of Commerce urged opposition to the tariff hike, arguing that it could raise costs for U.S. consumers and cause long-term harm to importers and distributors.
The chamber also said that despite condemnation from the U.S. Department of Labor and international human rights groups, China “consistently prohibits forced labor.”
“Trade-restrictive measures will not solve the domestic challenges facing the United States; they will only force American businesses and consumers to bear the costs of trade tensions,” the chamber said.
