Tariffs move forward, but exemptions for allies may soften blow
WASHINGTON — More than 100 Republican lawmakers implored President Donald Trump to drop plans for stiff and sweeping steel and aluminum tariffs as the White House prepared to formalize the measures Thursday. But officials signaled that they would look for ways to exempt certain countries.
Any announcement could be altered or delayed given the chaotic and hasty process surrounding the decision, people familiar with the deliberations cautioned. Yet Trump remains committed to moving forward with broad tariffs against the wishes of Republican lawmakers and his top economic adviser, Gary Cohn, who had argued against the move and said on Tuesday that he would resign.
But while the substantive debate over whether to impose tariffs has been resolved, the White House appeared to open the door Wednesday to making the policy less draconian, saying close allies, including Canada and Mexico, could be exempted.
“We expect that the president will sign something by the end of the week,” Sarah Huckabee Sanders, the White House press secretary said Wednesday. “And there are potential
carve-outs for Mexico and Canada based on national security, and possibly other countries, as well, based on that process.”
Trump has said the tariffs would apply to all countries across the board and that any exemptions could open a Pandora’s box of requests for special treatment. That has prompted stiff blowback from trading partners, Republicans and the financial markets, which sank over fears that across-the-board tariffs would trigger retaliatory action that stunts America’s economic growth.
On Wednesday, 107 Republican members of the House of Representatives sent a letter to the president expressing concern about broad tariffs and calling for him to focus any action on unfair trading partners, like China.
“We are committed to acting with you and our trading partners on meaningful and effective action,” the letter said. “But we urge you to reconsider the idea of broad tariffs to avoid unintended negative consequences.”
The administration on Wednesday began talking more openly about possible exemptions for countries that satisfy certain conditions, backing away from the bazooka-like approach Trump announced last Thursday in a hastily arranged meeting with steel and aluminum executives.
In an interview with Fox Business on Wednesday, Wilbur Ross, the secretary of commerce, said countries would be exempted if it served U.S. national security interests, which he defined broadly. “It’s defined to include effect on employment. It’s defined to include effect on individual industries. It’s not the conventional definition of national security,” he said.
The tariffs may not go into effect immediately. Under the statute that gives Trump authority to impose the measure, he has up to 15 days to take action. That period could give countries or companies a chance to submit input and try to sway the administration’s plan, according to the people familiar with the deliberations.
Still, Trump appears to be taking advantage of the vacuum created by the resignation of Cohn, the plan’s loudest opponent, to push the tariffs through. Cohn found himself overshadowed by a group of more protectionist-minded advisers who have urged the president to follow through with the pledges he made during his campaign.
The prospect of approaching tariffs has sparked furious lobbying from governments around the world, with offers of friendship and threats of retaliation.
On Wednesday, the European Union released a list of U.S.-made goods it would penalize if the tariffs went through.