Trump seems unmoved on unpopular tariff plan
said of the tariffs, which have yet to be formally announced.
Ryan said that in multiple conversations, congressional Republicans have strongly urged Trump to go after “true abusers” in a way that avoided “unintended consequences and collateral damage.”
For years, Trump has complained that China has dumped low-priced steel on U.S. markets, undercutting domestic manufacturers. But administration officials made clear in recent days that his proposed tariffs could hit every nation, including neighboring Canada, a high-ranking steel exporter.
Legislative leaders were hopeful Tuesday that the White House was, at the very least, wobbling on the breadth of its tariff order. Trump made no promises either way in his remarks Tuesday.
But news Tuesday evening that Trump chief economic advisor Gary Cohn planned to resign was seen as a sign that tariffs were coming. Cohn has fought hard against imposing them.
Trump reiterated his Monday statement that he might consider exempting Canada and Mexico from tariffs if the three countries reach a new North American Free Trade Agreement that he finds acceptable.
But he turned his focus toward European nations.
“The European Union has been particularly tough on the United States. They make it almost impossible for us to do business with them, and yet, they send their cars and everything else back into the United States,” he said. “And they can do whatever they’d like, but if they do that, then we put a big tax of 25% on their cars, and believe me, they won’t be doing it very long.”
Even before Trump’s comments, tensions had grown between the United States and Canada. The president spoke Monday with Canadian Prime Minister Justin Trudeau, a conversation in which Trump “emphasized his commitment to a NAFTA agreement that was fair to all three countries,” according to the White House.
In Canada, the prime minister’s office released a more forceful statement, saying Trudeau had “registered his serious concern” about the proposed steel and aluminum tariffs. They “would not be helpful to reaching a deal on NAFTA,” the statement said.
Trudeau’s comments were in keeping with fears by tariff opponents that Trump’s action might prompt other nations to retaliate — raising prices for Americans. That was also the fear of congressional Republicans, who already face daunting prospects in November’s election.
The economy is a major argument for Republican incumbents’ reelection in November. Since Trump’s tariff announcement, concerns have risen that the effect of tariffs would wipe out other recent economic gains, which Republicans plan to link to the GOP tax reform plan.
Ryan on Tuesday referred elliptically to those fears.
“We think the economy is doing very well, and we want to make sure that every step we take helps the economy,” he said. “We want to be sure that abuses are held to account, especially China.”
But, he added, “we want to be sure that every step we take forward does not have unintended consequences.”
Asked whether he shared Ryan’s concerns, McConnell responded with mild frustration.
“I think we need to wait and see what the White House finally decides to do on this,” he said.
Several Republicans have gone public with their criticism of the president’s tariff proposal. Sen. Ben Sasse (R-Neb.) called the idea “kooky.”
On the Senate floor Monday night, Sen. Lamar Alexander (R-Tenn.) cited President George W. Bush’s 2002 effort to impose similar tariffs as an example Trump should take to heart. The Bush effort was halted after it caused the same consequences Ryan and McConnell warned about Tuesday,
“It’s a good goal by a wellintentioned president, but I’m afraid that it will backfire just like it did for President Bush,” Alexander said. “Tariffs are big taxes; they are big taxes that raise consumer prices.”
Alexander said he was particularly alarmed then by the effect on manufacturers in Tennessee, including those in the auto industry. He also reminded Trump that after the tariff announcement, European appliance manufacturer Electrolux put on hold a $250million expansion it had planned in Springfield, Tenn. The company, which uses U.S. steel, said tariffs such as those backed by Trump would set off a domino effect leading to higher costs.
In tweets and brief comments in recent days, Trump has dismissed the notion of a global trade war. But on Tuesday, he went back to an earlier suggestion that a trade war would not be a bad thing.
“You know, when we’re behind ... every single country, trade wars aren’t so bad,” he said. “When we’re down by $30 billion, $40 billion, $60 billion, $100 billion, the trade war hurts them. Doesn’t hurt us. So we’ll see what happens.”
If the United States chooses to go to battle economically, he said, “it’ll be a loving, loving way.”
“They’ll like us better,” he said, “and they will respect us much more.”
His guest Tuesday had a contrary idea. “Swedish prosperity is built on cooperation, competitiveness and free trade,” Lofven said. “And I am convinced that increased tariffs will hurt us all in the long run.”