Trump turbulence slows momentum for trade deal
WASHINGTON — The momentum that supporters have tried to build for a new North American trade deal has run into some Trump turbulence.
The Trump administration had taken steps in recent weeks to work with Democratic and Republican lawmakers to address concerns about the proposed United States-MexicoCanada agreement.
Then President Donald Trump made his threat this past week of a 5 percent tariff on Mexican imports unless America’s southern neighbor cracked down on Central American migrants trying to cross the U.S. border.
His recent decision to remove U.S. tariffs on steel and aluminum imports from Canada and Mexico had appeased mostly Republicans who were using their trade vote as leverage to do away with those penalties.
The administration also had committed to meeting with a group of House Democrats to allay their concerns. That gesture created good will, and as House Speaker Nancy Pelosi, D-Calif., described it, put Democrats “on a path to yes.”
Now it’s unclear where that path may lead.
Influential business groups fear that Trump’s threat against Mexico could derail the proposed trade agreement.
“The last thing we want to do is put that landmark deal — and the 2 million manufacturing jobs that depend on North American trade — in jeopardy,” said Jay Timmons, president and CEO of the National Association of Manufacturers.
The U.S. Chamber of Commerce said it was considering legal action to block the tariffs from going into effect.
Congressional aides from both parties said it’s too soon to say whether Trump’s proposal will derail the agreement. But it does make it harder for lawmakers to assess how the agreement would improve the economic landscape if the tariffs on Mexico go into place.
Democrats seem mostly concerned with other breaking developments.
Hours before Trump announced his tariff plan, his administration tried to set up the agreement for a possible congressional vote before the August recess. The administration completed the formal steps necessary to start the clock for submitting legislation to Congress.
Pelosi said that was “not a positive step” and “indicates a lack of knowledge on the part of the administration on the policy and process to pass a trade agreement.”
Trump said he had the authority to impose a 5 percent levy on all goods imported from Mexico and pledged to increase those duties to as high as 25 percent if Mexico did not dramatically to reduce the number of migrants crossing the border.
Investors have responded negatively, with the Dow Jones industrial average closing Friday down roughly 355 points, or 1.4 percent.
Still, Conway told reporters that “tariffs are a good way to get a trading partner’s attention, and apparently it did.”