If President Trump insists on imposing tariffs on steel and aluminum coming into America, Congressman Fred Upton wants to at least target the tariffs in a way that would avoid or minimize any negative impact on Michigan. In fact, he has told the President so in a letter that he and 107 other members of Congress have dispatched in an eleventh hour bid to ease those impacts.
Upton and 107 colleagues have delivered a letter to President Trump reinforcing the need to take action against China and other unfair trading partners while at the same time expressing concerns that broad tariffs could harm the Michigan economy.
Upton says, “We should have targeted tariffs to address specific unfair trading practices in a way that minimizes negative consequences for Michigan jobs, manufacturers, and consumers.” Today is the day that Trump has said he will enact the tariffs, potentially triggering a trade war.
Here is the full letter sent by Upton and fellow Congressional leaders to the President:
We are writing to express deep concern about the prospect of broad, global tariffs on aluminum and steel imports. Because tariffs are taxes that make U.S. businesses less competitive and U.S. consumers poorer, any tariffs that are imposed should be designed to address specific distortions caused by unfair trade practices in a targeted way while minimizing negative consequences on American businesses and consumers.
We were privileged to partner closely with you and your administration to develop and pass the Tax Cuts and Jobs Act. Your leadership on these tax cuts, in combination with your regulatory reforms, have done so much to increase the competitiveness of U.S. companies and restore the United States’ position as the best place in the world to do business. We are convinced that the benefits of these tax cuts are only beginning, and we look forward to building on this great success as the benefits continue to spread to U.S. workers and job creators. But adding new taxes in the form of broad tariffs would undermine this remarkable progress.
If you do impose tariffs, key elements are necessary to minimize negative consequences. First, any relief should be narrow, excluding all fairly traded products and all products that do not pose a national security threat. Second, a robust exclusion process should be announced at the outset that allows U.S. companies to petition for and promptly obtain duty-free access for imports that are unavailable from U.S. sources or otherwise present extenuating circumstances. Third, existing contracts to purchase aluminum or steel should be grandfathered to allow duty-free imports and avoid disrupting the operation and finances of projects that are already budgeted and underway. Fourth, the effects of this remedy on our economy should be reviewed and reconsidered on a short-term basis to determine if a different approach would better serve the interests of our American workers, job creators, and consumers.
We support your resolve to address distortions caused by China’s unfair practices, and we are committed to acting with you and our trading partners on meaningful and effective action. But we urge you to reconsider the idea of broad tariffs to avoid unintended negative consequences to the U.S. economy and its workers. We are eager to work with you in pursuing a workable, targeted approach that achieves our shared goal.
