Commerce Secretary Nominee Mum on Future of Tariffs

At her confirmation hearing in the Senate, Rhode Island Gov. Gina Raimondo, President Joe Biden's nominee for commerce secretary, was asked about rolling back Section 232 tariffs on steel and aluminum, and ending Section 201 tariffs on solar panels, which will increase to 18% on Feb. 7 if no action is taken (see 2010130028) and if a court doesn't stop it (see 2012300045).

The questions came from both sides of the aisle, with Sen. Roy Blunt, R-Mo., telling Raimondo that his state's beer can, boat, airplane and pickup truck manufacturers are facing higher costs because of the tariffs, and Sen. Jacky Rosen, D-Nev., complaining that there are far more jobs in solar panel installation than in manufacturing, and that an increase in safeguard tariffs is counterproductive, because she feels federal policy should promote affordable solar installations.

Raimondo replied to Rosen by saying, “I look forward to learning more about it. I understand it’s time-sensitive and challenging and a lot of jobs at stake.” She was also noncommittal to Blunt, but her tone did not suggest openness to repealing the Section 232 tariffs on allies, as many have speculated the administration will do. “I hear you and I appreciate your advocacy,” she said Jan. 26. “Having said that, China has acted in ways that are clearly anti-competitive,” by dumping cheap steel and aluminum exports. “I plan to be very aggressive to help Americans compete against the unfair practices from China.”

She said she will engage stakeholders, and will make sure the “exclusions process is swift, fair, objective, and helps to balance the competing interests.” Blunt responded that if the administration rolled back the Section 232 tariffs, it “doesn’t take away from the tools you have on dumping. I hope you will look at it that way.”

Sen. Mike Braun, R-Ind., asked her about whether she agreed that it's important to underwrite domestic production of masks and prescription drugs, and she said she would make reshoring critical goods' production a priority. Sen. Gary Peters, D-Mich., asked Raimondo to support legislation he introduced that suggests Commerce should self-initiate more antidumping cases since they are expensive to litigate for producers (see 1903050025). The tart cherry industry did in fact bring a case against Turkish cherries, and while Commerce said dried cherry exports were subsidized, the International Trade Commission said there was no injury (see 2001140066).

Peters told Raimondo the unfair trade in tart cherries from Turkey is an existential threat to his growers. “I hear your passion,” she told him, and pledged the Commerce Department would “work to be more accessible to small producers.” She added, “On this one you had me at hello,” because she makes her husband a birthday cake with Michigan cherries every year.