Republicans open to targeted China tariffs despite steel flap

Republicans open to targeted China tariffs despite steel flap
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Republican lawmakers who broadly shunned President TrumpDonald John TrumpSchiff: Surveillance warrant docs show that Nunes memo 'misrepresented and distorted these applications' Chicago detention facility under investigation following allegations of abuse of migrant children Ex-Trump aide: Surveillance warrants are 'complete ignorance' and 'insanity' MORE's wide-ranging steel and aluminum tariffs are expressing more optimism about a potential new round of trade actions that specifically target China.

While some are urging caution out of fears of sparking a trade war with Beijing, others are signaling confidence in such an approach, characterizing China as the justified target of any punitive trade measures.

“Obviously there’s a huge difference,” said Rep. Tom RiceHugh (Tom) Thompson RiceHow Washington can tackle hearing loss related to diabetes Overnight Finance: Congress races to finish .2T funding bill | What to look for in omnibus | AT&T merger trial kicks off | Stocks fall on tech troubles | Trump targets Venezuelan cryptocurrency | Record SEC whistleblower payout Republicans open to targeted China tariffs despite steel flap MORE (R-S.C.), a member of the House Ways and Means Committee, which oversees trade.

“I think that the retaliatory tariffs are there for a reason, to deal with bad actors. I don’t think anybody argues that China hasn’t taken advantage of us, and that it hasn’t hurt the American middle class,” he added.

Trump is said to be considering imposing tariffs on up to $60 billion worth of Chinese imports following an investigation under “Section 301” of the trade act, which covers intellectual property. 

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China has frequently been accused of stealing intellectual property from U.S. companies, as well as subsidizing certain goods and dumping materials into the world market at the expense of other producers.

White House trade adviser Peter Navarro told CNBC this week that Trump would receive recommendations from U.S. Trade Representative Robert LighthizerRobert (Bob) Emmet LighthizerMcConnell urges GOP senators to call Trump about tariffs Companies brace for trade war MORE in the coming weeks on how to respond to “China’s theft and forced transfer of our intellectual property."

Lighthizer had originally suggested a $30 billion package of tariffs on imports from China, according to multiple reports, but the president wanted to double that figure, covering a range of more than 100 products.

Republicans are more optimistic about the administration taking targeted action against China after numerous GOP lawmakers, including Speaker Paul RyanPaul Davis RyanPelosi: 'Thug' Putin not welcome in Congress Interior fast tracks study of drilling's Arctic impact: report Dems unveil slate of measures to ratchet up pressure on Russia MORE (R-Wis.), opposed Trump's recent move to impose sweeping tariffs of 25 percent on steel and 10 percent on aluminum.

Trump excluded Canada and Mexico from those tariffs after heavy lobbying, and many members of his party continue to quietly push him to exempt additional U.S. allies from the import taxes.

House Ways and Means Committee Chairman Kevin BradyKevin Patrick BradySenate panel advances Trump IRS nominee GOP looks to blunt Dems’ attacks on rising premiums Meet the woman who is Trump's new emissary to Capitol Hill MORE (R-Texas) told Fox News on Friday that lawmakers would continue working with the White House and Commerce Secretary Wilbur RossWilbur Louis RossOn The Money: Commerce to review uranium imports | Lawmakers urge Trump not to impose auto tariffs | White House wants steeper cuts to EPA funding | Google hit with massive B fine Auto industry groups, lawmakers urge Trump administration to avoid tariffs on auto imports Census Bureau faces hiring woes amid low unemployment MORE on developing an exclusion process for products that would get trapped in the tariffs.

"It’s really important that the Commerce Department narrow those tariffs to make sure these fairly traded products aren’t swept in," Brady said.

Ross is scheduled to testify before the Ways and Means panel on Thursday, the day after Lighthizer appears before the committee. Lawmakers are expected to pepper the two officials with questions about their concerns surrounding the tariffs and the Trump administration's broader trade agenda.

“I think everybody approaches the tariff discussion sobered and concerned. That said, the issue of Chinese activity is where the scrutiny should lie,” said Rep. Peter Roskam Peter James RoskamGOP looks to blunt Dems’ attacks on rising premiums IRS reduces donor reporting rules for some tax-exempt groups The Hill's 12:30 Report — Sponsored by Delta Air Lines — Mueller indicts 12 Russian officials for DNC hack | Trump does damage control after bombshell interview MORE (R-Ill.), another Ways and Means member.

“The blanket tariffs on steel directly hurt my district. I represent small manufacturers that use a lot of steel, it’s imported, and this hurts them,” he said.

“Let me put it this way, nobody’s doing a candlelight vigil for the Chinese.”

Like many Republicans, Rep. David SchweikertDavid SchweikertThe Hill's Morning Report — Russia furor grips Washington Freedom Caucus members see openings in leadership Members of Congress demand new federal gender pay audit MORE (Ariz.), a staunch free-trader, said he approved of the overall policy thinking on targeted actions against China but said that details of the proposal would be critical.

“I’m a fan of, if you’ve documented someone cheating, deal with the bad act. If other countries are playing by the rules, respect that and understand that,” he said. Tariffs, he added, are only one tool in the box.

“Are we exhausting the levers that are available to us? Turns out, most of the time we go to the [World Trade Organization], we win,” he said.

Some Republicans remain concerned that that new tariffs would lead to a trade war with China.

“On the retaliatory side, obviously sorghum, soybean, those guys are generally concerned about the impact that that would have,” said Rep. Mike ConawayKenneth (Mike) Michael ConawayHuawei: FCC proposal would hurt poor, rural communities Senate panel upholds finding that Russia backed Trump, contradicting House Trump era ramps up tech worker revolt MORE (R-Texas), who heads the House Agriculture Committee.

But he remained open to giving the administration the benefit of the doubt.

“Mr. Trump has shown himself to be an adept negotiator, and so we’ll see where he goes,” he said.

Chinese foreign ministry spokesman Lu Kang told reporters this week that the U.S. should expect its own response to new tariffs.

“If the United States takes actions that harm China’s interests, China will have to take measures to firmly protect our legitimate rights,” he said, according to Reuters.

The business community, which has often seen the GOP as a steward of its interests, is also voicing concerns about Trump taking broad action against Beijing.

“The administration is right to focus on the negative economic impact of China’s industrial policies and unfair trade practices, but the U.S. Chamber would strongly disagree with a decision to impose sweeping tariffs,” said Thomas J. Donohue, CEO of the U.S. Chamber of Commerce.

Tariffs, he said, would “wipe out” a significant chunk of the benefits of the GOP tax law.

Democrats are more skeptical that Trump would be able to thread the needle with retaliatory measures.

“The president will propose tariffs, but what is not taken into consideration is how the cost of those tariffs are passed onto American consumers. So in the end, what is achieved other than the president getting his licks in?” asked Rep. Brian HigginsBrian HigginsPerez: 'Time will tell' if Ocasio-Cortez win signals need for new Dem leadership The Hill's Morning Report — 'Sobering' IG report damages FBI The Hill's 12:30 Report MORE (D-N.Y.), another Ways and Means member.

Rep. Richard NealRichard Edmund NealHouse votes to disavow carbon tax Top Dems urge Trump officials to reverse suspension of ObamaCare payments Overnight Health Care: Dem demands details on Trump-Pfizer pricing deal | Why both sides agree nominee could shift high court to right on abortion | DEA gets more powers to limit opioid production MORE (Mass.), the top Democrat on the committee, raised a similar concern.

“They seem to be making it up as they go along,” he said of the administration's trade policy.