Senators Bob Corker (R-Tn.), Heidi Heitkamp (D-N.D.), Pat Toomey (R-Pa.), Mark Warner (D-Va.), Lamar Alexander (R-Tn.), Brian Schatz (D-Hi.), Ron Johnson (R-Wi.), Chris Van Hollen (D-Md.), Mike Lee (R-Ut.), and Jeff Flake (R-Az.) on Wednesday introduced legislation to require congressional approval of tariffs designated under Section 232 of the Trade Expansion Act of 1962.
The bill requires the president to submit to Congress any proposal to adjust imports in the interest of national security under Section 232.
For a 60-day period following submission, legislation to approve the proposal will qualify for expedited consideration, guaranteeing the opportunity for debate and a vote. The requirement would apply to all Section 232 actions moving forward, as well as those taken within the past two years.
“While we all agree on the need to ensure the international trade system is fair for American workers, companies and consumers, unfortunately, the administration is abusing the Section 232 authority delegated to the president by Congress,” said Senator Corker, chairman of the Senate Foreign Relations Committee. “Making claims regarding national security to justify what is inherently an economic question not only harms the very people we all want to help and impairs relations with our allies but also could invite our competitors to retaliate. If the president truly believes invoking Section 232 is necessary to protect the United States from a genuine threat, he should make the case to Congress and to the American people and do the hard work necessary to secure congressional approval.”
“For North Dakota farmers, ranchers, and manufacturers, exporting is critical, but the administration’s wrongheaded trade policies are putting their livelihoods in jeopardy,” said Senator Heitkamp. “Our bipartisan bill would make sure Congress has a key oversight role if a president imposes tariffs under the claim of national security reasons. Right now, the president is implementing tariffs on our allies, like Canada, Mexico, and the EU – countries that don’t pose national security threats but which are critical trading partners for North Dakota. The implications of these tariffs are significant – on our own producers and businesses because of retaliatory tariffs we’re now seeing and on our relationships with our allies who could use the same claims of national security to impose tariffs on us. Huge economic policy decisions like tariffs shouldn’t be taken lightly, and Congress should serve as a needed check to make sure we aren’t losing out in the end.”
“Tariffs are taxes on American consumers. They hurt American workers, families, and employers. Imposing them under the false pretense of ‘national security’ weakens our economy, our credibility with other nations, and invites retaliation,” said Senator Toomey. “The decision to use these taxes should not be taken lightly or unilaterally. By passing this legislation, Congress can reassert its constitutional responsibility (Article 1, Section 8, Clauses 1 and 3) on trade and ensure Americans can keep buying affordable products and keep selling our goods abroad. I hope my Democratic and Republican colleagues join this common-sense effort.”
“While I believe that we should hold China accountable for unfair trade practices and I strongly support strong trade enforcement rules that protect American workers, the President should not be relying on an obscure provision of a trade law intended to uphold national security in order to impose tariffs on our allies. Instead, he should focus on building international coalitions to hold bad actors accountable and protect American workers,” said Senator Warner.
“Tariffs are the constitutional responsibility of Congress. If the president thinks that tariffs are necessary for national security reasons, our bill requires Congress to approve that decision within 60 days,” said Senator Alexander. “In general, these kinds of tariffs are a big mistake, and using national security as an excuse is a bigger mistake. There is no state that is likely to be more damaged by tariffs on aluminum and steel than Tennessee, because in many ways we are the nation’s number one auto state. I have urged President Trump instead to focus on reciprocity—do for our country what our country does for you—instead of imposing tariffs, which are basically higher taxes on American consumers.”
“For too long Congress has ceded important policymaking authority to the executive branch on a wide range of issues,” said Senator Johnson. “It’s time for Congress to reclaim its constitutional authorities on tariffs to ensure we don’t undermine the significant economic progress we have made over the last 18 months.”
“Ensuring American businesses, consumers, and workers get a fair deal when it comes to trade is crucial – there’s no doubt that we need to crack down on China for its efforts to prey on American technology. But misusing Section 232 to levy tariffs on our allies is risky and will hurt American consumers. This legislation makes it clear that to use Section 232, there must be a proven risk to our national security. I urge the Senate to take up this legislation immediately and maintain the longstanding Congressional oversight on trade negotiations,” said Senator Van Hollen.
“Congress has ceded far too much law making power to the Executive branch including the power to unilaterally raise tariffs,” said Senator Lee. “While our trade agreements do need reform, that reform should be accomplished with congressional approval, not through unilateral executive action that could harm the economy.”
“The staggering negative impact of the administration’s proposed tariffs is already being felt by workers and businesses across the country,” said Senator Flake. “Congress ought to assert leadership in this situation and take away the matches the president seems intent on using to ignite a dangerous trade war. I encourage my colleagues to promptly pass this legislation and push back against ill-conceived protectionist measures.”
Senator Corker said there was broad support for the bill.
Neil Bradley, executive vice president and chief policy officer, U.S. Chamber of Commerce: “The U.S. business and agriculture community is profoundly concerned about how newly imposed tariffs – and the inevitable foreign retaliation arriving in the next few weeks – will lead to lost American jobs. This emerging trade war endangers the remarkable economic progress we’ve seen in the past year. The constitutional authority of the Congress to ‘regulate foreign trade’ and its oversight of tariff policy is unambiguous. This modest proposal to clarify congressional prerogatives is welcome and long overdue.”
David French, senior vice president for government relations, National Retail Federation: “The Constitution is clear: Congress has the authority to regulate commerce and oversee trade. It’s time for Congress to exert its authority and play a leading role in mitigating escalating trade tensions with our strongest allies. There needs to be a more appropriate balance on trade policy between Congress and the executive branch, and we applaud Senators Corker and Toomey for working to achieve that. With the threat of a global trade war, Congress must step in before the U.S. economy suffers, American jobs are lost and families are forced to pay more for everyday products.”
Philip Ellender, president of government and public affairs, Koch Industries: “In many respects, America has never been as strong as today, in large part thanks to robust tax and regulatory reforms undertaken by Congress and the administration. To sustain the momentum, Koch supports this bipartisan legislation, which helps restore Congress’ constitutional authority on matters of trade, including any tariffs proposed on the grounds of national security. Equal to its role under the Trade Promotion Authority, it is imperative that lawmakers reassert their powers on these important trade decisions. The country is at its best when all can succeed through policies that enable rather than stifle the voluntary, free and fair exchange of goods and services. This happens when trade is expanded, new markets are opened, and costs are subsequently lowered for consumers. Koch champions policies that continue to advance the robust, pro-growth economic agenda championed by Congress and the administration, and we oppose those which impose barriers to trade, ultimately hurting individuals, businesses, and communities.”
Cal Dooley, president and CEO, American Chemistry Council: “ACC and our members applaud the swift action taken by Sen. Corker and fellow Senate leaders today to bring more oversight to tariff actions that have the potential to derail U.S. manufacturing and hurt our economy. Over the past decade, the U.S. chemicals sector has gone from one of the least competitive in the world to one of the world’s lowest-cost producers of chemicals, with more than $194 billion in announced new investments. The president’s unilateral decisions on trade over the past several weeks have inadvertently put our industry’s renaissance in jeopardy. According to new ACC analysis, retaliation caused by the Section 232 steel and aluminum tariffs alone would impact more than $3.2 billion of U.S. chemicals exports. Tariffs on autos and auto parts would invite more damaging retaliation and drive up the cost to make vehicles here in America, further eroding the competitiveness of the U.S. chemical manufacturing sector, one of the auto industry’s biggest suppliers. If done right, U.S. trade policy has the potential to create prosperity and economic growth for all. Levying tariffs and inciting retaliation from our most important trading partners is not the vision for prosperity that a majority of Americans and American businesses share. We encourage congress and the president to use this opportunity to work together to pursue a more constructive, multilateral approach to trade negotiations that representatives from all sides can support.”
Brent Gardner, chief government affairs officer, Americans for Prosperity; Nathan Nascimento, executive vice president, Freedom Partners; David Velazquez, executive director, The LIBRE Initiative: “Trade is an essential part of the U.S. economy. It leads to economic growth, job creation, higher wages, more consumer choice, and more affordable prices. Trade lifts people out of poverty and improves lives. By contrast, trade barriers like tariffs harm workers, consumers, and companies. Thus, as staunch advocates for U.S. economic prosperity and job creation, we are deeply concerned about recently implemented or announced tariffs on imported goods. These developments were quickly followed by announcements from our trade partners, including some of America’s closest allies, of retaliatory tariffs. Trade barriers make us poorer. Tariffs are a tax on American consumers, workers and businesses and undermine economic growth. They inflict the most pain on those who can afford it the least, by making everyday goods more expensive. They raise costs for U.S. exports which rely on imports in production, which makes them less competitive. And, of course, there are the costs from retaliatory tariffs imposed by our trade partners. Because there is so much at stake in our trade policies, it is vital for Congress to play a robust role to closely scrutinize new tariffs. Your legislation would help ensure an appropriate balance between the legislative and executive branches when considering new trade barriers. Specifically, the legislation would ensure that any new trade barriers, such as tariffs, under Section 232 of the Trade Expansion Act of 1962 are subject to an expedited up-or-down vote by Congress before they can take effect. It would also give Congress an opportunity to weigh in on any tariffs imposed over the last two years. We believe this is a common-sense approach to ensure a healthy balance between branches of the federal government, by reverting to Congress some of the authority it previously delegated to the executive branch. Trade between countries is voluntary and mutually beneficial to both parties. It is a win-win. Trade is vitally important for preserving – and improving – the standard of living for all Americans. We strongly support your efforts and encourage all Senators to support this legislation.”
Ann Wilson, senior vice president of government affairs, Motor & Equipment Manufacturers Association: “The Motor & Equipment Manufacturers Association (MEMA) supports the common-sense amendment to be introduced by Senators Corker and Toomey to require congressional approval before the president can adjust imports that are deemed to threaten our nation's security. This amendment does not limit the president's authority to initiate investigations or conduct free trade. If this amendment comes to a vote during the debate of the National Defense Authorization Act, MEMA urges a vote in favor of the amendment. MEMA represents the motor vehicle supplier industry, the largest sector of manufacturing jobs in the United States, directly employing over 871,000 Americans. Motor vehicle parts manufacturing employment in the U.S. is up 19 percent in the last five years. This growth in jobs has been possible because motor vehicle parts suppliers operate in an integrated, complex global supply chain. Access to worldwide markets is critical for the motor vehicle parts industry to remain competitive. Open and reciprocal trade is essential to the success of motor vehicle parts suppliers and the jobs we create in the United States. This industry has questioned and vocally opposed the imposition of tariffs on steel and aluminum imports and the initiation of an investigation into automobiles and motor vehicle parts under the guise of national security. This amendment does not impede our national security or the economic security of our country.”
A copy of the legislation is available online here.