Top Republicans urge Trump to sharpen focus on steel, aluminum tariffs

House Republicans are urging President Trump to use tariffs to target specific trade problems that are weighing on the domestic steel and aluminum industries.

House Ways and Means Committee Chairman Kevin Brady (Texas) and Ways and Means Subcommittee on Trade Chairman Dave Reichert (Wash.) argue that slapping sweeping tariffs on all imported steel and aluminum would undermine the potential economic gains generated by the tax-cuts law.

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“Because tariffs are taxes that make U.S. businesses less competitive and U.S. consumers poorer, any tariffs that are imposed should be designed to address specific distortions caused by unfair trade practices in a targeted way while minimizing negative consequences on American businesses and consumers,” they wrote in a letter to Trump obtained by The Hill.

Congressional Republicans have been ramping up pressure on the White House to rethink its approach to the tariffs. 

The lawmakers, who are seeking Republicans to sign onto the letter, outlined four ways that Trump could tailor the tariffs to sidestep broader harm to the overall economy.

A final plan should exclude all fairly traded products as well as products that aren’t a threat to national security, the lawmakers wrote. 

The lawmakers are pushing for a “robust exclusion process” that allows U.S. companies to receive duty-free access for imports that are unavailable from U.S. sources.

The administration should also allow existing contracts for purchases of aluminum or steel to go through duty-free to avoid project disruptions, they wrote.

Lastly, the administration should determine and review the short-term economic effects of the tariffs to determine if a different approach is warranted.

The president is expected this week to announce a final tariff plan.

Last week, Trump announced that he would impose tariffs of 25 percent on all imported steel and 10 percent on aluminum.

Under section 232 of the trade law, the president can impose tariffs or quotas on imported materials for national security purposes.

The move brought quick threats of retaliation from top U.S. allies and trading partners, including Canada, the United Kingdom and the European Union.

“We urge you to reconsider the idea of broad tariffs to avoid unintended negative consequences to the U.S. economy and its workers,” the lawmakers wrote.

“We are eager to work with you in pursuing a workable, targeted approach that achieves our shared goal.”