Lawmakers press Trump trade rep on tariff effect

US Trade Representative Robert Lighthizer faced an outcry from some lawmakers on Wednesday, one of whom said the Trump administration's planned tariffs on Chinese goods could elicit a "devastating" retaliatory response by China.

US news media, quoting unnamed White House sources, reported that US President Donald Trump plans to announce on Thursday broad tariffs of up to $60 billion a year on China to punish it over its intellectual property policies and practices.

The White House schedule said Trump will sign a presidential memorandum at 12:30 pm targeting China's so-called economic aggression.

"The president is going to make a decision on that, I believe in the very near future on this issue of 301," Lighthizer told the House Ways and Means Committee hearing.

Section 301 of the US Trade Act of 1974 gives the president wide latitude to respond to foreign trade actions perceived as detrimental to US commerce.

When lawmakers raised concerns about the adverse effect of the tariffs and retaliation on state and local economies, jobs and consumers, Lighthizer indicated that the administration is fully aware of that and will take actions that maximize pressure on China and minimize pressure on US consumers.

"If the president makes a decision to do this, and he hasn't made that decision yet it's imminent that he will come to the decision. That's the way we are going to approach it," he said.

Erik Paulsen, a Republican congressman from Minnesota, expressed concerns about the steel tariff and Section 301 tariffs on the local economy. He cited a study that shows the US will lose five jobs for each steel and aluminum job saved, and it will be a net loss of 18 jobs for a job gain if foreign retaliation is considered.

"So let's not shoot ourselves in the foot," he said, adding that most of the jobs to be lost are exactly the type of blue-collar jobs that Lighthizer and Trump intend to protect.

"I hope we won't be seeing tariffs imposed on products that a lot of American families, consumers and small businesses purchase every day," Paulsen said.

Earl Blumenauer, a Democratic congressman from Oregon, questioned the rationale of Trump's tariff plan.

"Tariffs are not just magically imposed on somebody else; it's a cost of doing business, it affects what happens with American manufacturers, and in retail, and they are ultimately paid by the consumer," he said.

He described it as "outrageous" that low-income Americans are already spending a large percentage of their money on clothing and footwear. "And I am hopeful that we don't rush into something with China that ends up actually making it worse," he said.

In a letter to Trump last week, 25 major US retailers, including Walmart, Target, Costco and Best Buy, pleaded that the US president consider the negative impact brought about by broad tariffs under Section 301. "It would hurt American households with higher prices and exacerbate a US tariff system that is already stacked against working families," the letter said.

"Applying any additional broad-based tariff as part of a Section 301 action would worsen this inequity and punish American working families with higher prices on household basics like clothing, shoes, electronics and home goods."

Jackie Walorski, a GOP congresswoman from Northern Indiana, voiced concern over the soybeans grown in her state that are mainly exported to China, and for the Honeywell factories that supply components to Boeing planes exported to China, which could be targets of Chinese retaliation.

She said the anxiety about tariffs and retaliation is shared regardless of the industry - manufacturers, suppliers and farmers will be affected.

"Are you considering the devastating effect of retaliatory measures that could have, especially on small businesses, family farms that absolutely do not have the resources to absorb big losses," she asked.

Jim Renacci, a Republican congressman from Ohio, echoed those concerns, citing examples of two soybean farmers in his state and saying that US soybean farmers are concerned that they could be the target of Chinese retaliation.

Foreign Ministry spokeswoman Hua Chunying said in Beijing on Wednesday that "we want no trade war with anyone, but if our hands are forced, we will not quail nor recoil from it".

"Therefore, if the day did come when the US took measures to hurt our interests, we will definitely take firm and necessary countermeasures to safeguard our legitimate interests," she said.

China-US bilateral trade exceeded $600 billion last year.

chenweihua@chinadailyusa.com