June 26, 2018 TO THE MEMBERS OF THE UNITED STATES SENATE: On behalf of the undersigned business and agriculture organizations, we are writing to support legislation (S. 3013) by Senator Corker and a bipartisan group of senators to require the President to submit to Congress any proposal to raise tariffs in the interest of national security under Section 232 of the Trade Expansion Act of 1962. The U.S. business and agriculture communities are
deeply concerned that the President’s
unrestricted use of section 232 to impose tariffs may not be in the national interest. It is now also increasingly clear that the way the steel and aluminum tariffs have been used will result in retaliatory tariffs from our largest trading partners and closest allies, and that retaliation will have serious negative economic impacts on the United States. The tariffs are also undermining U.S. efforts to build an international coalition of like-minded countries to join the United States in combating the use of unfair trade and investment policies. In addition, a new threat to levy a 25% tariff on all imported automobiles and auto parts would inflict enormous harm on the U.S. economy. Approximately $350 billion of imports would be affected, and retaliation on the same order would be expected. The U.S. auto industry
—
the nation’s largest manufacturing sector —
and many downstream industries would be profoundly harmed by this action, as would sectors such as agriculture and chemical manufacturing that would be targeted in retaliation. The economic impact of this action would be approximately 10 times larger than that of the tariffs on imported metals. As you know, Article I of the Constitution assigns the Congress exclusive authority to regulate foreign trade and levy taxes, including tariffs. The Congress used this power to delegate to the President the authority to impose tariffs, without Congressional oversight, to safeguard national security in the Trade Expansion Act of 1962. While the President should still have this type of authority, the current circumstances highlight the need for Congress to ensure that the authority will be used, as intended by the Congress, in the overall national interest. The legislation offered by Senator Corker and his colleagues is designed to accomplish this limited objective. The President will retain the power to impose tariffs to protect the national security subject only to confirmation by the Congress that the power is being properly used. This change is appropriate and overdue, and we urge you to support it when it is brought forward for a vote in the Senate. Sincerely,
National Associations
Alliance of Automobile Manufacturers American Apparel & Footwear Association American Association of Exporters and Importers
American Bakers Association American Chemistry Council American Feed Industry Association American Forest & Paper Association American Gear Manufacturers Association American International Automobile Dealers Association American Petroleum Institute American Trucking Associations Associated General Contractors of America Association of American Railroads Association of Equipment Manufacturers Association of Global Automakers Auto Care Association Business Roundtable Coalition for GSP Coalition of American Metal Manufacturers and Users Computer & Communications Industry Association Council for Responsible Nutrition Electronic Transactions Association Energy Equipment and Infrastructure Alliance Federation of American Hospitals Footwear Distributors & Retailers of America Global Cold Chain Alliance Household & Commercial Products Association Independent Lubricant Manufacturers Association International Wood Products Association Internet Association Motor & Equipment Manufacturers Association National Association of Chemical Distributors National Beer Wholesalers Association National Confectioners Association National Foreign Trade Council National Marine Manufacturers Association National Retail Federation Organization for International Investment Personal Care Products Council Pet Food Institute Plastics Industry Association Retail Industry Leaders Association SEMI Software & Information Industry Association
The Hardwood Federation The Toy Association Transportation Intermediaries Association U.S. Chamber of Commerce U.S. Fashion Industry Association U.S. Hide, Skin and Leather Association Vinyl Institute WineAmerica
State & Local Groups
Alaska Chamber Alhambra Chamber of Commerce Alpena Area Chamber of Commerce Ames Chamber of Commerce Archbold Area Chamber of Commerce Arizona Chamber of Commerce and Industry Arkansas State Chamber of Commerce/Associated Industries of Arkansas Associated Equipment Distributors Association of Washington Business Aurora Regional Chamber of Commerce Baton Rouge Area Chamber Battle Creek Area Chamber of Commerce Billings Chamber of Commerce Blackstone Valley Chamber of Commerce Blackwell Industrial Authority Boise Metro Chamber Bolingbrook Area Chamber of Commerce Border Trade Alliance Brooklyn Chamber of Commerce Buckeye Valley Chamber of Commerce Buffalo Niagara Partnership Bunn Properties Business & Industry Association of New Hampshire Business Council of Alabama Caldwell Chamber of Commerce Camarillo Chamber of Commerce Campbell County Chamber of Commerce Capital Region Chamber Carson Valley Chamber of Commerce Cedar Rapids Metro Economic Alliance
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