Commerce Secretary Nominee Avoids Making Promises on Section 232 Tariffs, Seasonality
Two Senate Finance Committee members pressed commerce secretary nominee Gina Raimondo to study the cost of Section 232 tariffs on downstream companies, but she did not agree to do so in her written replies to their questions. “If confirmed as Secretary, I plan to review any work the Department of Commerce has already done on the impact of the tariffs and will ensure that any review is up to date,” she replied.
She also said, “It is my understanding that Biden Administration will review the steel and aluminum Section 232 tariffs and that the President has the authority to make revisions to the tariffs. While it would be the President’s prerogative, if confirmed as Secretary of Commerce, I would expect that the Department of Commerce will provide advice and technical assistance in that review and decision.”
When asked repeatedly about the exclusion process for those tariffs, she said they've already increased efficiency. She was also asked about the future use of Section 232. She committed to following the law on publicly releasing the investigation -- the Trump administration did not, on the automotive report -- but would not commit to doing an analysis of the economic effects on downstream industries of proposed tariffs or quotas. Instead, she said all investigations would follow the statutory requirements.
Sen. Ted Cruz, R-Texas, asked whether the new administration might use existing trade law to impose carbon tariffs on imports, and suggested that he might be thinking of using Section 232. “Do you believe that there is existing authority to impose duties using the rationale of combating climate change? If so, please specify which statutes and regulations provide that authority,” he wrote.
Raimondo did not directly answer. “If confirmed as Secretary of Commerce, I intend to work closely with Congress on the issue of climate change and can commit to use the tools available under the law and work with our interagency partners and other stakeholders to implement the Administration’s environmental policies, as appropriate,” she wrote.
Raimondo fielded questions from both sides of the seasonality issue, and gave the same bland answer each time. In response to questions from both Sen. Rick Scott, R-Fla., and Sen. Kyrsten Sinema, D-Ariz., Raimondo replied, “If confirmed as Secretary, Commerce will continue its outreach with growers of seasonal and perishable fruits and vegetables on unfair trade practices to enhance their understanding of applicable trade remedy laws and processes and will continue to monitor foreign subsidy practices that have a direct impact on U.S. producers of seasonal and perishable fruits and vegetables.”
Many senators pressed Raimondo on China and trade. “Chinese economic policies have encouraged excess capacity in several industry sectors and have subsidized a number of critical industries in its pursuit of economic growth to the detriment of U.S. and global interests,” she said, but merely said she would use the World Trade Organization and trade remedy laws to fight those problems.
On Huawei imports, she said she would continue the policy of restricting their use in telecom networks. Sen. Roy Blunt, R-Mo., expressed concern about the shortage of imported semiconductor chips, which has affected auto manufacturing production. “Will the Department of Commerce work with our trading partners to help alleviate the shortage of semiconductor chips?” She replied, “The Department of Commerce will play an active role in President Biden’s whole-of-government approach to semiconductors. In the short term, we should work with trading partners to explore options for alleviating this shortage. In the long term, we must take steps to ensure a resilient and secure supply chain for semiconductor chips, including continued assistance to firms expanding their semiconductor manufacturing investments in the United States.”