Democrats Try and Fail to Get All Senators to Agree to Stop Tariffs on Canada, Mexico or Allies
Sen. Chris Coons, D-Del., said that Senate Finance Committee Chairman Mike Crapo, R-Idaho, blocked his effort to pass a bill through the Senate unanimously that would require Congress to approve tariffs imposed on free-trade partners like Mexico and Canada, or on NATO and major non-NATO allies.
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He said he had sought to pass the Stopping Tariffs on Allies and Bolstering Legislative Exercise of (STABLE) Trade Policy Act through unanimous consent now because 25% tariffs on most Canadian and all Mexican goods are promised for March 4.
"These tariffs will be disastrous for our economy and our national security. These tariffs will cost the average American household about $1,200 a year. They'll raise costs for avocados and appliances, diesel fuel and dog toys, car parts and Christmas tree lights, tomatoes and tequila -- I could go on.
"Our economies are so closely integrated -- the United States, Canada and Mexico -- that it will increase the cost of a GM pickup truck about $10,000, and even if these tariffs at the last minute are delayed, businesses are hurt by the uncertainty, which continues to increase costs. President [Donald] Trump plans to follow those tariffs with reciprocal tariffs on the EU, which includes many of our critical NATO allies and closest partners. Imposing tariffs on our allies and partners diminishes our standing in the world and makes our neighbors less likely to help us in the future," Coons said on the Senate floor Feb. 27.
Crapo, in objecting, said that the U.S. "should ensure that the commitments in [free-trade] agreements are respected."
He said he agreed with Coons "that we should not undertake tariff actions lightly on our allies or free trade agreement partners."
"We should, however, take care before we say that such an option is completely off the table." Crapo said. "In fact, all of our free trade agreements provide exceptions for when parties can remove economic benefits, including on national security grounds.
"I do not recall anyone suggesting that the Biden Administration could not impose sanctions on Nicaragua last year because it was a CAFTA party.
"Instead, we recognized that legitimate national security grounds -- including Nicaragua’s human rights abuses -- warranted the economic pressure.
"The STABLE Trade Policy Act is accordingly too blunt an instrument when nuance is called for, including the option of tariffs in some instances," he said.
Coons said he hopes to work with Crapo in the future on "improving market access and on elevating the quality and the capabilities of U.S. trade engagement with our partners. But I really don't understand why President Trump seems so intent on harming one of his signature accomplishments -- the USMCA."