Hatch Threatens to Advance Legislation to Stop New Tariffs; Brady Says Anti-Tariff Momentum Could Build

Senate Finance Committee Chairman Orrin Hatch, R-Utah, called the White House's approach to tariffs "misguided and reckless," and said if the Trump administration "continues forward" with tariffs as a way to protect U.S. manufacturing, "I will work to advance trade legislation to curtail presidential trade authority." He said during a speech on the Senate floor July 17 that he is sympathetic to the effort (see 1807120023) from Sen. Bob Corker, R-Tenn., to rescind steel and aluminum tariffs and prevent tariffs on autos and auto parts, and he is discussing legislative options with his colleagues.

Still, even as Hatch said President Donald Trump has put the economy at risk, he said he'd rather work with him to advance a trade agenda that serves American interests, and he said he will support Trump negotiating with China to get that country to stop unfair trade practices. But while that effort is underway, he said, the administration should not impose any more tariffs on our allies.

House Ways and Means Committee Chairman Kevin Brady, R-Texas, had similar sentiments while speaking to reporters on July 16. He said as tariffs "continue to ramp up and escalate, there will be growing momentum for a legislative response or solution" unless the steel and aluminum exclusion process is fixed; countries that had temporary exemptions, such as Mexico and Canada, are spared from the tariffs; and the administration "lays out a clear time-table for resolving the China trade dispute, which the president's right to challenge them on."

However, he did not say he would hold a hearing on Rep. Mike Gallagher's bill that would roll back the Section 232 tariffs on steel and aluminum, and require approval from Congress for tariffs on autos and auto parts under the same national security grounds (see 1807120023). Gallagher, R-Wis., "reached out before filing it," Brady said. "He's going to work to make the case, this is restoring traditional trade powers that should be held by Congress, so we're going to watch that carefully." Brady also hinted he could develop his own bill.

If allies were not affected by the steel and aluminum tariffs, and if there was a more generous product exclusion process, "I'm confident that would take the pain off U.S. workers and farmers and focus where it rightly belongs, which is on the unfair trade practices," he said. He said he will continue to urge President Donald Trump to schedule a meeting with the leader of China to negotiate a solution to the trade conflict.

"I have a lot of confidence that the president, in face to face meetings with President Xi could develop the right fair trade and lasting trade framework going forward. I think we need new rules. Clearly this is a trade dispute, that if it is prolonged, could have serious economic consequences here, in America, and around the world. So I just think the sooner both of these leaders meet to work this out directly, I think it's best for the U.S. economy, certainly for our local farmers and manufacturers."