The head of the U.S. Chamber of Commerce suggested Wednesday that export controls are a better method than tariffs for the White House to pressure China on a trade deal.
The business community has, by and large, opposed President Trump’s decision to levy tariffs on steel and aluminum imports and billions of dollars in Chinese goods, arguing they will hurt companies and consumers alike. The Chamber, waging an aggressive opposition campaign that highlights the state-by-state impact of the tariffs, says export controls are an alternative that would protect Americans’ pocketbooks while still influencing China.
“There are a lot of things they make they want to send here,” Chief Executive Officer Tom Donohue told reporters at a breakfast hosted by The Christian Science Monitor. “You could just as easily say, ‘You can’t import that into the U.S. right now.’ And that gets people’s attention.”
[Related: Majority of manufacturers say tariffs have boosted their costs and will mean higher prices]
Despite the Chamber’s opposition, the White House announced earlier this week it would add tariffs on almost $200 billion in products from China in addition to a previous $50 billion. Combined, the amount is nearly half of all the goods the communist nation ships to the U.S., and Trump has threatened to add duties to the rest.
U.S. businesses say they support the administration’s goal of ending China’s exploitative practices such as intellectual property theft, but don’t like the methods the White House is using.
“If what you’ve decided to do is make it expensive for people to sell things here, it shouldn’t be the U.S. consumer that’s paying for it,” Donohue said.
Trump has kept alive the option of continued negotiations with Chinese President Xi Jinping, telling reporters that “China wants to come over and talk.” Donohue said despite the lack of discussions between the two leaders, negotiations continue at other levels of the administration.
Outside of the trade skirmishes, Donohue touted the achievements of the Republican-led Congress over the past two years, including the tax overhaul and regulatory rollbacks. He warned that Democratic control of the House or Senate, with an agenda including free healthcare for everyone, could threaten those accomplishments.
Democratic lawmakers, meanwhile, seized on comments earlier this week from top Trump economic adviser Larry Kudlow that the administration would “probably” address entitlements such as Medicare, Medicaid and Social Security in 2019, urging voters to support Democratic candidates in the upcoming midterm elections to counter that.
The party has long argued that Republicans would attempt to trim a deficit widened with last year’s sweeping tax cuts by cutting such benefits. In a twist, several Republican candidates have cited the damage that could be done to Medicare should Democrats pursue a single-payer healthcare plan.
When asked about the Chamber’s political contributions this cycle, Donohue said the group would “spend plenty of money.” He indicated it would press Congress next year to pursue a reform of entitlement programs, like Medicare, Medicaid and Social Security.
