- - Thursday, June 6, 2019

President Trump’s threats to impose a barrage of escalating trade tariffs on Mexican imports has triggered severe warnings from U.S. manufacturers and our nation’s larger business community.

The National Association of Manufacturers (NAM) and the American Automotive Policy Council (AAPC), a major lobbying group for the nation’s biggest automakers, said Mr. Trump’s tariffs could have a “devastating” impact on our economy.

“These proposed tariffs would have devastating consequences on manufacturers in America and on American consumers,” NAM president and CEO Jay Timmons said in a statement.

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“We have taken our concerns to the highest levels of the administration and strongly urge them to consider carefully the impact of this action on working families across this country,” Mr. Timmons added.

Mr. Trump warned Mexico last month that if it did not take swift action to reduce the flow of illegal migrants from Central America into the United States before June 10, he would slap a 5 percent tariff on all of its goods coming into the United States.

If Mexico refuses to meet his demands, the president said he will raise his tariffs to 10 percent on July 1, and by an additional 5 percent, 10 percent, 20 percent and 25 percent after that over succeeding months.

But Republican senators, meeting in a closed-door luncheon Tuesday, warned Mr. Trump that they were ready to block his plan by organizing a veto-proof majority opposed to the tariffs against one of our largest trading partners, according to news reports.

“There is not much support in my conference for tariffs — that’s for sure,” said Senate Majority leader Mitch McConnell, Kentucky Republican, adding that he hoped negotiations with Mexico would be “fruitful” and that tariffs would be avoided.

At least half a dozen Republican senators spoke out against the tariffs at the GOP meeting, and many more have been sharply critical of the president’s trade policies.

The legal process under which the Republicans would block Mr. Trump’s action remains murky, but he could declare an emergency at the border to justify his action.

“But the law that provides for presidential emergency declarations also allows Congress to vote to overturn them” The Washington Post reported.
When Mr. Trump declared an emergency on the border earlier this year, Congress moved to overturn it, but failed to muster the two-thirds vote to override his veto.

This time, however, Mr. McConnell and other lawmakers say he has the two-thirds to reject the president’s likely veto.

Sen. Kevin Cramer, North Dakota Republican, among others, says there are as many as 20 Republican votes to turn back Mr. Trump’s tariffs, with the help of widespread Democratic opposition.

Meantime, U.S. business organizations have decided that this time they are going to play hardball with Mr. Trump on his aggressive tariff actions.
“The U.S. Chamber of Commerce is weighing a lawsuit against the White House over President Trump’s latest round of tariffs,” reports USA Today’s Nathan Bomey.

The influential lobbying group confirmed that “we are exploring all options, including legal action,” he reported.

“Imposing tariffs on goods from Mexico is exactly the wrong move,” says U.S. Chamber Chief Policy Officer Neil Bradley. “These tariffs will be paid by American families and businesses without doing a thing to solve the very real problems at the border.”

According to an analysis from Deutsche Bank, “some 35 percent of all U.S. auto parts consist of components manufactured abroad — and Mexico is one of the U.S.’s largest trading partners, with a bilateral relationship worth $671 billion last year, according to the U.S. Trade Representative’s office,” Bradley says.

That impressive figure isn’t lost on the NAM or the AAPC, raising fears, in the end, that the cost of Mr. Trump’s tariffs will be passed along to consumers who will foot the bills in higher auto costs.

Meantime, factory goods orders dropped in April by 0.8 percent, the most in two years, shipments of manufactured goods fell 0.5 percent, the largest decline since April, 2017, the Commerce Department reported Tuesday.

Fasten your seat belts. We may be in for a bumpy ride.

Donald Lambro is a syndicated columnist and contributor to The Washington Times.

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