Grassley Finding Middle Ground on Section 232 Tariff Bills
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, is finding a way to bridge the gap between an approach that would roll back existing Section 232 tariffs and prevent any new ones without congressional assent and an approach that would leave metals tariffs in place and give Congress the opportunity to rein in Section 232 authority only by disapproving tariffs that have been levied. The latter tack would require a veto-proof majority (see 1902120033).
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Grassley is recommending that tariffs or quotas initiated by the president under Section 232 "would be limited to a defined period of time unless extended by an Act of Congress." When asked by International Trade Today about whether senators were coalescing around a 90-day period or a longer period, he said he would not negotiate in the press. Grassley said he expects to introduce his bill in coming weeks. In it, after Section 232 tariffs are imposed, the executive branch would have to report to Congress "on the achievement of any national security objectives as well as the economic impact of the president’s action." The legislation would also "require a product exclusion process that is transparent and accountable to Congress," he said in a news release.
"Negotiations are going along very well. It's going to come together when we work out differences between [bills introduced by Sen. Rob] Portman and [Sen. Pat] Toomey and get broad bipartisan support," Grassley said March 27 at a press conference at his office. Toomey, R-Pa., issued a statement after Grassley's broad description of his bill, commending the chairman "for his commitment to reasserting Congress’s constitutional responsibilities over trade. I agree with the broad objectives that Chairman Grassley has put forth." He said he's working with Grassley to create a substantive Section 232 reform.
Grassley also addressed China tariffs, and how long they might stay after a deal is reached, if one is reached. He said the U.S. is seeking an enforcement structure that begins with dialogue at various levels, but ultimately, if the U.S. is not satisfied, it wants to be able to impose "unilateral tariffs that can't be counteracted by tariffs from China." He said he doesn't know if it's reasonable to think China would agree to that. "If we would get what we want, I don't know why we would be leaving the tariffs on," he said. But he also suggested it might make sense to gradually step down the tariffs as we see whether China is acting in good faith.