March 07, 2018

New Democrat Coalition Members Urge Congressional Action on Trump’s Tariffs

Today, New Democrat Coalition (NDC) Trade Task Force Co-Chairs Rick Larsen and Gregory W. Meeks and NDC Chair Emeritus Ron Kind, called on the Ways and Means, Armed Services, and Foreign Affairs Committees to immediately hold a series of hearings on the potential impacts of President Trump’s recently announced steel and aluminum tariffs. In addition to their roles as trade leaders within the New Democrat Coalition, Reps. Rick Larsen, Gregory W. Meeks, and Ron Kind are senior NDC Members on the Armed Services, and Foreign Affairs, and Ways & Means Committees, respectively.

Following an investigation by Commerce Secretary Wilbur Ross, President Trump stated his intention last week to impose 25 percent tariffs on steel imports, and 10 percent tariffs on aluminum imports into the United States. The investigation was made under Section 232 of the Trade Expansion Act of 1962, which allows the President to impose restrictions on imports that Commerce determines threaten national security.

“The tariffs President Trump is threatening could damage our economy, lead to net job loss, drive up prices for U.S. manufacturers and consumers, and drive a wedge between the U.S. and key allies, including Canada, South Korea, and the European Union.

“There are certainly serious concerns with Chinese overcapacity in steel and aluminum production that America and its allies need to address, but the administration is taking the wrong approach with these broadly applicable tariffs that are already causing chaos and confusion for our nation’s economy, national security, and trade relations with our allies.

“This could jeopardize our nation’s security and lead to retaliation from other countries against American made goods and services. We must conduct oversight of the Administration’s decision and hold hearings on the potential domestic and foreign implications to provide certainty for American families and workers.

 “Trade wars are bad for consumers, workers, farmers, and businesses. We urge Congress to review the potential implications of these tariffs to promote our nation’s national security in the wake of this potential trade war. New Democrats look forward to working with Congressional Committees in our effort to fight for a pro-growth, pro-worker trade agenda in Congress that expands opportunity and keeps our nation safe and secure.”

Read the full letter here or below.

 

March 07, 2018

The Honorable Kevin Brady                                      The Honorable Mac Thornberry

Chairman                                                                     Chairman

House Ways and Means Committee                           House Armed Services Committee

1102 Longworth House Office Building                    2216 Rayburn House Office Building

Washington, DC 20515                                              Washington, DC 20515

 

The Honorable Ed Royce

Chairman

House Foreign Affairs Committee

2170 Rayburn House Office Building

Washington, DC 20515

 

Dear Chairmen,

On behalf of the New Democrat Coalition Trade Task Force, we request that the Ways and Means, Armed Services, and Foreign Affairs Committees immediately hold a series of hearings on the potential impacts of the recently announced steel and aluminum tariffs on U.S. companies, workers and consumers, global trade and diplomatic relations, the economy, national security, military readiness, and other impacted industries and communities. Additional hearings should be held to determine the repercussions of Chinese trade practices and appropriate, effective measures for targeted enforcement.

As you know, following an investigation by Commerce Secretary Wilbur Ross, the President stated his intention last week to impose 25 percent tariffs on steel imports and 10 percent tariffs on aluminum imports to the United States. The investigation was made under Section 232 of the Trade Expansion Act of 1962, which provides the President with the ability to impose restrictions on imports that Commerce determines threaten national security.

We agree that domestic steel production is important for national security, and there are certainly serious concerns with Chinese overcapacity in steel and aluminum production that America and its allies need to address. We support strong enforcement to respond to unfair trade practices that threaten American jobs and industries. However, the process by which the President’s policy was announced raises serious questions about how it was chosen from the alternatives presented by the Commerce Department and whether its implications were carefully thought through, including the dangerous precedent being created within the WTO. Many of America’s allies, including Canada, South Korea, and the European Union, are America’s largest sources for steel and aluminum. Furthermore, the U.S. currently has restricted trade of steel and aluminum with China, meaning that these tariffs will likely have little effect on the Chinese steel and aluminum markets. As a result, we are concerned that the proposed remedy of broadly applicable tariffs could harm our allies rather than address the underlying problems caused by China’s conduct.

Further, President Trump’s announcement contradicts the position of the Department of Defense (DoD) in several ways. Secretary Mattis wrote to Secretary Ross that imposition of tariffs would have a negative impact on key allies. And Secretary Mattis further wrote that “targeted tariffs are more preferable than a global quota or global tariff.” As President Trump is disregarding the position of the DoD on how best to promote national security, it is essential that Congress conduct oversight into the DoD role in the interagency process that led to the imposition of these tariffs.

There are also potentially broad reaching domestic implications. We believe that these tariffs could drive up steel and aluminum prices for U.S. consumers and manufacturers, creating far reaching U.S. supply chain ramifications and potentially driving companies to move manufacturing operations and jobs overseas. This decision could also cause other countries to take similar protectionist actions in retaliation, imposing tariffs on U.S. goods, hurting our economy and workers in a broad range of industries.

 

Sincerely,



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