Trump Steel, Aluminum Tariff Impacts Surface in Senate Infrastructure Hearing

Questions regarding the impact of new steel and aluminum tariffs on various sectors of the economy were fielded to Commerce Secretary Wilbur Ross during testimony at a Senate Commerce Committee hearing on infrastructure March 14.Ross was questioned about what the Trump administration's thinks are likely trade retaliatory moves by U.S. trading partners following the imposition of tariffs on metal imports. He responded that there had been “very lively discussion of the potential for retaliatory tactics” that “went on for hours.” Still, he acknowledged there are challenges when trying to model what the impact of retaliatory tariffs applied to certain goods would on the overall U.S. economy.Ross singled out the proposal made by the European Commission that could affect $3.5 billion worth of U.S. exports. That amount, he observed, is “two-tenths of one percent” of U.S. gross domestic product (GDP). Even so, sales of the affected products in the EU is not likely “go to zero in any event," he added.“So, the problem is using retaliatory tactics in the broad-brush sense doesn't really get you anywhere,” Ross said. “We have to see—we'll be hearing soon enough, as the thing evolves, what kinds of retaliation people might have in mind, and whether or not they have the authority to do it.”