White House will fight congressional effort to rein in tariff powers

The Trump administration will fight any effort by Congress to rein in its tariff powers, White House economic adviser Larry Kudlow said Wednesday. That means that lawmakers seeking to limit those powers will likely need a veto-proof majority.

“The president is not in favor of that at the moment. Not in favor that,” Kudlow told the Washington Examiner. “He believes that as he conducts these trading relations that he needs the maximum leverage to bring home the deals.”

President Trump has used Section 232 of the Trade Expansion Act to unilaterally enact tariffs on steel and aluminum imports, alleging they were needed to protect domestic industries that supply the military. Lawmakers allege he simply wanted to circumvent Congress. Business groups have lobbied hard for the tariffs to be rolled back.

Senate Finance Committee Chairman Chuck Grassley, R-Iowa, has proposed putting an automatic sunset on those tariffs and requiring congressional approval to retain them after the period expires. Grassley is attempting to strike a compromise between two bipartisan reform bills.

The chairman’s approach would split the difference between the two main other proposals to limit 232 tariffs. One, by Sen. Pat Toomey, R-Pa., would require congressional approval in all cases. Another, by Sen. Rob Portman, R-Ohio, would add extra steps to the 232 process but still allow the president to issue the tariffs on his own.

Individuals with knowledge of congressional negotiations say Grassley appears to be leaning towards a more restrictive approach. Kudlow’s comments indicate that Trump would likely veto any such bill, meaning that a supermajority of 67 Senate votes would be required to override a veto and get it enacted.

A representative for Grassley could not be reached for comment.

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