Washington Insider: Coordinated Pushback on Tariffs

The New York Times is reporting that a new, coordinated effort by American businesses is attempting to do "what they could not do before" concerning U.S. tariff policies. Business officials have testified, tweeted, written and called the White House with their concerns — efforts that have largely failed, the Times says. Now they are mounting a last-ditch effort to convince the president that his trade policies are hurting his political base.In a multimillion-dollar campaign that includes television advertisements, rallies in targeted congressional districts and online persuasion efforts, companies and business groups led by the National Retail Federation and an agricultural group called Farmers for Free Trade are highlighting the damage the tariffs are bringing to companies and workers in states with large numbers of Trump supporters.The effort, called Tariffs Hurt the Heartland, focuses heavily on the economic pain that manufacturers claim is being inflicted upon industries that Mr. Trump champions and patches of the country that lifted him to the White House. It includes nearly 90 industry trade groups, like the Consumer Technology Association, the National Lumber and Building Material Dealers Association and the Toy Association."We're obviously trying to reach the White House," said David French, the retail federation's senior vice president for government relations, "and we're trying to deliver a narrative to the White House that is clear and unambiguous, about the breadth of communities where the consequences of these tariffs will be felt."But, there's a problem, NYT says. To persuade the president, companies must first win over the public, especially the most loyal supporters who continue to back his trade policies by a wide margin. "Eighty percent of Republicans support the steel and aluminum tariffs," the Times says.That tension between business groups, which have cheered Republicans over tax cuts and efforts to reduce federal regulation, and the Trump political base has proved difficult for many Republican members of Congress to navigate. Though many have spoken out against some or all of the tariffs, the Republican-held House and Senate have taken few concrete steps to push back against its policies.The most vocal opponents have been businesses, which have found their entreaties repeatedly rebuffed by a president who has continued to threaten an escalating series of tariffs on goods from China, Canada and the European Union.Apple, Ford and General Motors, along with hundreds of smaller businesses, have all publicly warned the administration that tariffs will hurt the very companies it wants to protect, at the expense of American jobs and economic growth. The administration's response: Make your stuff in the United States, the Times says.Mr. Trump imposed tariffs on imported steel and aluminum from several countries, and on $50 billion worth of goods from China, a country his administration says is violating the norms of international trade. The president appears set to complete a second round of tariffs on China, on as much as $200 billion in imports, and has said he is willing to move quickly to a third round that would encompass all Chinese imports — including many everyday household items like apparel, electronics and other consumer products. He has continued to threaten tariffs on cars imported from the European Union and Canada.That has raised the stakes for American businesses, which face higher costs to source material and products from abroad and retaliation from other nations that has made it harder to sell products into foreign markets.Business owners have found sympathetic ears among lawmakers and the White House, but little action. This has prompted a more coordinated effort to try to show how tariffs hurt American consumers and businesses by raising prices.Economic data have yet to show a surge of price increases related to tariffs. That fact, many business leaders acknowledge, is working against their pitch. Trade groups and executives say that could quickly change if Mr. Trump follows through with additional tariffs on Chinese products.The Federal Reserve's Beige Book, which collects anecdotes from business contacts across the country, noted increased warnings of price pressures from tariffs in its latest edition released on Wednesday — though Fed officials have said they have yet to see such warnings translate into increased inflation."Tariffs were reported to be contributing to rising input costs, mainly for manufacturers," the Beige Book said. "Businesses' input costs have generally been rising more rapidly than selling prices, though there have been increased efforts to pass along cost hikes to customers."It is clear that a number of key administration staff members, including Secretary of Commerce Ross, U.S. Trade Representative Lighthizer and trade advisor Navarro strongly support the "get tough" tariff approach, and do not believe it threatens domestic markets. The Times report emphasizes the political support for that view, in spite of growing business opposition.Thus, it seems that efforts to reverse the support for the administration's trade fight face an uphill battle. This is a fight producers are already supporting in many cases, and which should be watched closely as it intensifies, Washington Insider believes.