Canada, Mexico could be spared from tariffs
WASHINGTON — President Trump’s new tariff proclamation, set to be made at a White House ceremony this week with steel and aluminum workers looking on, could spare some major importers like Mexico and Canada.
Still, with details scarce and a president deeply wedded to the America-first economic agenda he campaigned on, GOP lawmakers and business groups are still openly worrying about the potential of a trade war they say will harm Americans and blot out Republicans’ political gains from the tax bill.
“We won’t drive the economy to over 3 percent growth or continue to create jobs if we go down this path,” said U.S. Chamber of Commerce President Thomas Donohue, who implored the president not to impose “new worldwide tariffs on steel and aluminum.”
Lawmakers including House Speaker Paul Ryan (R-Wis.) and Senate Majority Leader Mitch McConnell spent the week urging the White House to take a more surgical approach to tariffs rather than the flat 25 percent rate for steel and 10 percent on aluminum Trump proposed.
The White House responded yesterday.
“There are potential carve-outs for Mexico and Canada based on national security, and possibly other countries as well, based on that process,” White House spokeswoman Sarah Huckabee Sanders told reporters yesterday. Those carve-outs “would be a case-by-case and country-by-country basis,” Sanders said.
Even Commerce Secretary Wilbur Ross, who backs Trump’s plan, said yesterday that Trump’s plan would have “flexibility” — an effort to ease concerns from within his party.
But the lack of details on the plan and the speed with which it is being rolled out as officials hurriedly sort out which countries may be exempted has caused concerns on Capitol Hill, as has this week’s departure of Trump’s economic adviser Gary Cohn, who for months has advocated against imposing broad tariffs.
Meanwhile, the European Union threatened yesterday to retaliate with tariffs targeted on products that hit America where it hurts, from tobacco and orange juice to bluejeans and T-shirts.
The EU also threatened tariffs on Harley-Davidson motorcycles, produced in Ryan’s home state, as well as Kentucky bourbon to aim at McConnell.
In a tweet, Trump said his focus was China.
“China has been asked to develop a plan for the year of a One Billion Dollar reduction in their massive Trade Deficit with the United States,” Trump tweeted.
Asked if action by China to reduce its trade deficit could shape Trump’s policy before it’s announced, Sanders said, “We would take anything into consideration. But as of right now, we’re moving fully ahead.”