U.S. president turns trade into television reality show

WASHINGTON — On a day that epitomized a suspenseful era in American trade policy, the U.S. played down a presidential threat to impose a border tax, but raised the notion of upcoming Buy American provisions, slapped duties on Canadian pipes and invited the world to witness its internal tug-of-war over economic visions.

The star of this economic-reality show: U.S. President Donald Trump. The former TV host allowed cameras to record for nearly an hour as he went backand-forth with aides and federal lawmakers in a sparring match over the future of the global economy, of the sort normally held behind closed doors.

In Tuesday’s edition of “Survivor: U.S. trade policy,” one idea appeared to get voted off the island. A senior White House official played down Trump’s earlier talk about some ill-defined import tax that left veteran trade-watchers perplexed about how it could work — or even be legal.

“There is nothing formal in the works right now,” said the official, who was not authorized to discuss the matter publicly and spoke on condition of anonymity. “He was simply reiterating the same sentiments he’s been saying about reciprocal trade for years.”

Those sentiments were certainly on display Tuesday.

Wilbur Ross, Trump’s commerce secretary, boasted about the 81 per cent increase in trade retaliations since his inauguration — and did so as the U.S. launched an investigation that could lead to more than 50 per cent in duties on wide-diameter welded pipe from Canada, of the sort used in oil and gas pipelines.

That dispute will play out into the fall. It started with a request from the American pipe industry, following a similar procedure that has resulted in duties on softwood lumber, newsprint and Bombardier planes — although the plane duties have been overturned by a U.S. tribunal.

Trump repeatedly pressed for tough action. Again and again, members of Congress attempted to rein in his more protectionist impulses. They expressed support for the president’s get-tough attitude but raised different concerns about the impact tariffs might have on the economy, such as higher prices. The president was undeterred. “We’re like the stupid people [on trade],” Trump said.

He sounded unpersuaded by the argument that tariffs ultimately get passed down to consumers through higher prices, so people buy less, economic activity slows down, and ultimately the number of people hurt exceeds the number of workers helped in protected industries.

The U.S. is now contemplating a range of punitive actions on foreign-made steel, primarily from China. One thing it will also be weighing soon is the prospect of including a Buy American provision in a massive, $1.5-trillion US infrastructure bill Trump wants.