McCarthy cool to Trump threat of 35% tariffs on foreign goods
House Majority Leader Kevin McCarthy on Monday refused to back President-elect Donald Trump’s push for a 35-percent tariff on companies that move operations abroad and then sell their goods back in the U.S., saying corporate tax reform is the key to retaining American jobs.
“I think that’s a better way to solve the problem than getting in a trade war over a 35-percent tariff,” the California Republican told reporters.
Mr. Trump pitched his get-tough
approach in a tweet Sunday, saying companies that move jobs offshore will be “making a very expensive mistake” and would face a 35-percent tax. That raised eyebrows among Republicans such as Sen. Ben Sasse of Nebraska, who said it could lead to higher prices for families.
Yet Mr. McCarthy downplayed apparent rifts between Mr. Trump and congressional Republicans, who’ve also struggled to defend tax breaks that were doled out to Carrier, an Indiana-based manufacturer,
through sitting governor and Vice President-elect Mike Pence.