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 McConnellDoug Jones to McConnell: Don't 'plow right through' with Kavanaugh Kavanaugh accuser agrees to testify next week GOP, Kavanaugh accuser struggle to reach deal 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 SasseMcConnell tamps down any talk of Kavanaugh withdrawal Senate approves 4B spending bill Grassley agrees to second Kavanaugh hearing after GOP members revolt 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 RyanHow does the 25th Amendment work? Sinema, Fitzpatrick call for long-term extension of Violence Against Women Act GOP super PAC drops .5 million on Nevada ad campaign 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 HatchKavanaugh accuser agrees to testify next week Judiciary Dems say GOP treating Kavanaugh accuser worse than Anita Hill Dem vows to probe 'why the FBI stood down' on Kavanaugh 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 BradyHouse GOP bill a mixed bag for retirement savers China imposes new tariffs on billion of US goods: report Trump announces tariffs on 0B in Chinese goods 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 DainesMontana lawmakers cheer recommendation to ban mining north of Yellowstone Congress passes bill to require Senate campaign filings to be made electronically Congress just failed our nation’s veterans when it comes to medical marijuana 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 RobertsPat Robertson asks followers to help cast 'shield of protection' ahead of hurricane Cruz gets help from Senate GOP in face of serious challenge from O’Rourke The farm bill gives Congress a chance to act on the Pet and Women Safety (PAWS) Act 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 GrassleySenate panel reaches tentative deal for Kavanaugh accuser to testify Thursday Kavanaugh accuser agrees to testify next week Aide for GOP involved in Kavanaugh nomination resigns after past sexual harassment allegation surfaces 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 HoevenOvernight Energy: Trump Cabinet officials head west | Zinke says California fires are not 'a debate about climate change' | Perry tours North Dakota coal mine | EPA chief meets industry leaders in Iowa to discuss ethanol mandate 74 protesters charged at Capitol in protest of Kavanaugh Big Oil’s carbon capture tax credit betrayal MORE (R-N.D.), another member of the Agriculture Committee, said he has stressed to Trump and Agriculture Secretary Sonny PerdueGeorge (Sonny) Ervin PerdueAdministration announces plan to streamline oil and gas extraction in national forests The Hill's Morning Report — Sponsored by Better Medicare Alliance — How will Obama impact the midterms? Here are the administration officials who have denied they wrote the anonymous NYT op-ed 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.”