Trump promises a tariff announcement, but no one knows what it will be
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The last time a trade war happened in the U.S., things didn’t go well for the economy. Will history repeat itself as Trump puts a tariff on steel and aluminum? Here are the facts.
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WASHINGTON — As aides race to complete the necessary paperwork, President Trump said he will meet with industry executives Thursday afternoon to discuss formally imposing tariffs on steel and aluminum imports.
“Looking forward to 3:30 P.M. meeting today at the White House,” Trump tweeted in the morning. “We have to protect build our Steel and Aluminum Industries while at the same time showing great flexibility and cooperation toward those that are real friends and treat us fairly on both trade and the military.”
Looking forward to 3:30 P.M. meeting today at the White House. We have to protect build our Steel and Aluminum Industries while at the same time showing great flexibility and cooperation toward those that are real friends and treat us fairly on both trade and the military.
— Donald J. Trump (@realDonaldTrump) March 8, 2018
Trump did not say what he meant by “flexibility” with “real friends,” but aides said the tariffs could well include exemptions for Canada and Mexico, pending the outcome of other trade negotiations.
Late Wednesday, two administration officials said the event would take place Thursday afternoon, but it was not put on the official White House schedule released Wednesday night. There has been no official announcement other than the president’s tweet.
Despite rising opposition from global allies and some Republicans, aides said Trump plans to follow through on his pledge to impose the tariffs on certain steel and aluminum imports, though there is some question as to when they will become formalized.
Lawyers are still detailing the necessary legal paperwork, administration officials said, and aides are planning a signing ceremony.
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Peter Navarro, a Trump trade adviser who pushed the tariff plan, told Fox Business Network the president planned to sign paperwork at a Thursday afternoon meeting in the Oval Office with “a bunch of men and women from steel country and aluminum country” in attendance.
Navarro also said the plan would grant a temporary exclusion of Mexico and Canada; Trump has said those two countries could avoid tariffs if they grant concessions during ongoing negotiations to re-work the North American Free Trade Agreement.
“The proclamation will have a clause that does not impose these tariffs immediately on Canada and Mexico,” Navarro told Fox, giving the parties the “opportunity to negotiate a great deal for this country” in NAFTA.
“And if we get that, then all is good with Canada and Mexico,” he said.
Attorneys are going over the details of the tariff plan, officials said.
Trump announced his pledge in a surprise move a week ago, telling a group of executives he would impose 25% tariffs on steel imports and 10% on aluminum imports.
The tariff issue created major divisions within the White House itself, and led in part to this week’s resignation announcement by top economic adviser Gary Cohn.
As the White House makes preparations, a rising number of Republicans say the tariffs will invite retaliations from other countries that could slap tariffs on American products. The resulting trade war, they said, would raise prices worldwide.
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“I think the tariffs are a big mistake,” said Sen Pat Toomey, R-Pa., speaking on Philadelphia radio station WPHT. “I think the policy is very, very counter productive.”
In a letter released Wednesday, 107 House Republicans led by Ways and Means Chairman Kevin Brady – the Texas Republican Trump has praised often for his management of the tax overhaul last year – urged Trump to “tailor†the tariffs to punish “bad actors who trade unfairly and hurt America†such as China.
Broad tariffs, they said, could have “unintended negative consequences to the U.S. economy and its workers,†especially now that lower corporate tax rates are making American companies more competitive in global markets.
“Adding new taxes in the form of broad tariffs would undermine this remarkable progress,†they wrote.
Some economists defend Trump’s plan, saying trades have sucked the life out of American manufacturing.
Peter Morici, a business professor at the University of Maryland, tweeted that Trump “is not starting a trade war” because “we are already in one,” especially with China.
“The other side has bazookas we have been using water pistols,” Morici said. “China has targeted one U.S. industry after another, thrown millions of Americans out of work. Time to fight back.”
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