Trade war: Trump faces lastditch push by aides, allies to thwart tariffs
EU threat Harley-Davidson Inc., the motorcycle maker based in Wisconsin, Ryan’s home state, is facing threats of retaliation from Europe over the steel and aluminium tariffs. European Commission President Jean-Claude Juncker said the European Union (EU) may target imports of the company’s motorcycles as well as Kentucky bourbon and Levi Strauss jeans. Harley-Davidson already is being hit by a deepening slump in American motorcycle demand, which has spurred job cuts and the closing of a plant in Kansas City, Missouri.
Republicans in Congress are walking a fine line - criticising the President while offering him a way to back off his position and preserve his ability to say he imposed tough new tariffs. Lawmakers do not have much time to change his mind. Trump announced his plan last week, and an order could be signed within days. House Ways and Means Chairman Kevin Brady of Texas and other House Republicans are seeking to blunt the tariffs’ impact by adding an “exclusion process” allowing American companies to petition for duty-free access for imports that aren’t available from US sources. ‘Different approach’ The lawmakers want existing contracts for aluminium and steel to be exempted from tariffs. They also called for a review of the effects of tariffs on the economy “to determine if a different approach would better serve the interests of our American workers, job creators, and consumers.” Brady said he spoke with Trump twice last week but not since the Thursday meeting when the President unveiled his plans. “The President has not made a final decision yet,” Brady said. “I’m continuing to reach out to the White House and the trade team.” If Trump follows through with the tariffs he proposed, the Senate Finance Committee should consider holding hearings, said John Cornyn of Texas, the No. 2 Republican in the chamber. “The part that concerns me the most is the potential for retaliatory tariffs and a so-called trade war and other areas that would affect some of the more vulnerable sectors of our economy, like agriculture, for example,” Cornyn said.
ARTICLE SOURCE- BUSINESS STANDARD.