Worried GOP views Trump trade war with angst

Worried GOP views Trump trade war with angst
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Republican lawmakers are returning to Washington this week with their eyes focused on an escalating trade war with China that has roiled the stock market and put them on edge over the economy and this fall’s midterms.

Congressional aides say Trump’s tariffs will be the hot topic of conversation at party caucus meetings this week, even as they wonder what leverage they can exert on a president who vowed to put his stamp on trade.

“I don’t know there’s much you can do there,” said one senior Senate GOP aide.

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Democrats and Republicans alike believe November’s elections will be about Trump’s presidency.

The White House and GOP have sought to make the contests as much about the economy as possible, believing strong economic growth and the Republican tax-cut law can overcome the ever-present controversies surrounding Trump’s tenure.

Trump’s trade actions are a threat to that narrative. They have already contributed to a sell-off on Wall Street, and they have raised fears that some economic gains from lower taxes could be lost to higher consumer prices triggered by tariffs.

An analysis by the right-leaning Tax Foundation said that in 2018, more than a quarter of the gains from the tax law could be lost because of the new tariffs.

Republican free-trade proponents hope they can persuade Trump to focus more on using existing enforcement mechanisms and less on tariffs that invite retaliation on U.S. goods.

Senate Majority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellPelosi: 'Thug' Putin not welcome in Congress GOP to White House: End summit mystery Sunk judicial pick spills over into Supreme Court fight MORE (R-Ky.) told a group of farmers in business leaders in Kentucky last week that Trump’s threats were making him “nervous” and warned that even modest tariffs could become a “slippery slope” to an all-out trade war.

Sen. Ben SasseBenjamin (Ben) Eric SasseChristine Todd Whitman: Trump should step down over Putin press conference GOP lambasts Trump over performance in Helsinki GOP senator: Senate should be 'disgusted' by Helsinki summit MORE (R-Neb.) was much more pointed.

“If he’s even half-serious, this is nuts,” Sasse said of the president’s actions. “This is the dumbest possible way to do this.”

Many other Republican lawmakers are leery about criticizing Trump, who is popular with the party’s base.

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.) has kept a low profile on the issue. Early last month, however, he came out strongly against Trump’s announced tariffs on steel and aluminum imports and warned of “unintended consequences.”

Senate Finance Committee Chairman Orrin HatchOrrin Grant HatchLighthizer to testify before Senate next week as trade war ramps up Senators introduce bipartisan bill to improve IRS Senate panel advances Trump IRS nominee MORE (R-Utah) on Friday took a relatively soft approach to Trump’s proposal to slap tariffs on an additional $100 billion worth of Chinese imports. Trump had already announced tariffs on $53 billon of Chinese imports.

Hatch blamed Beijing for instigating the trade battle by demanding that the U.S. transfer technologies and intellectual property to Chinese businesses as the price for doing business in China.

“It is China’s responsibility to end its technology transfer regime,” he said. “Until it does so, there will be a risk of a continuing cycle of retaliatory tariffs.”

 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), who also has jurisdiction on trade, has adopted a measured approach as well.

“In enforcing our trade laws, we should always take a targeted approach to address unfair practices while avoiding harm to U.S. workers and job creators,” he said in a statement Wednesday.

Brady’s panel will hold a hearing on April 12 to study how tariffs on steel and aluminum imports will affect the domestic economy. 

Sen. Steve DainesSteven (Steve) David DainesSenate Democrats block resolution supporting ICE Republican bill aims to deter NATO members from using Russian pipeline GOP senators introduce resolution endorsing ICE MORE (R-Mont.) will return Monday from a congressional delegation trip he led to China over the recess where he raised concerns with government officials over what he called the country’s “unfair trade practices.”

Yet, as a member of the Agriculture Committee who represents a state with millions of dollars in wheat and beef exports, Daines also urged the president to take a cautious approach.  

“We must take actions to level the playing field while also working to avoid or mitigate retaliation that would harm Montana’s farmers,” he said Friday.

Farm-state Republicans are some of the biggest GOP critics of Trump’s actions.

Senate Agriculture Committee Chairman Pat RobertsCharles (Pat) Patrick RobertsGOP senators introduce resolution endorsing ICE Senate passes mammoth farm bill Moderates need to hold firm against radical right on Farm Bill MORE (R-Kan.) warned the president against playing a high-stakes game of chicken with a major importer of U.S. agricultural commodities.

He said posturing on trade is playing havoc with people’s livelihoods.

“These are real people, real families. You don’t use them as a playing card,” Roberts told The Kansas City Star.

Sen. Chuck GrassleyCharles (Chuck) Ernest GrassleyKavanaugh returns questionnaire to Senate panel Sunk judicial pick spills over into Supreme Court fight Andrew Wheeler must reverse damage to American heartland MORE (R-Iowa), a member of the Agriculture and Finance Committees, complained earlier this week that farmers and ranchers were taking the brunt of retaliation from China.

Sen. John HoevenJohn Henry HoevenGOP senators visited Moscow on July 4, warned Russia against meddling in 2018 election: report GOP lawmakers plan official visit to Russia later this week GOP senators introduce bill to prevent family separations at border MORE (R-N.D.), another member of the Agriculture Committee, said he has stressed to Trump and Agriculture Secretary Sonny PerdueGeorge (Sonny) Ervin PerdueAndrew Wheeler must reverse damage to American heartland US puts business ahead of children’s health Western states brace for most severe wildfire outbreak since 2012 MORE that “changes to our trade policy need to result in better deals for the U.S., but also avoid retaliatory tariffs on our agriculture exports.”