Aimed at China, Donald Trump’s tariffs are hitting closer to home
President Donald Trump’s escalating dispute with China over trade and technology is threatening jobs and profits in working-class communities where his “America First” agenda hit home. The Commerce Department has received more than 2,400 applications from companies seeking waivers from the administration’s tariffs on steel and aluminum imports, which may result in duty payments of millions of dollars for larger businesses. The department has begun posting the requests online for public comment; several of the applications released so far suggest deep misgivings with Trump’s protectionist strategy, especially in areas where he won strong support during the 2016 election. The tariffs are aimed primarily at China for flooding the global market with cheap steel and aluminum. But they’ve also led to confusion and uncertainty, according to Associated Press interviews and a review of records. In Oklahoma, Texas and Wisconsin, for example, businesses operating in the furniture, energy and food sectors have outlined the financial difficulties they’d face if they’re not excused from the steel tariff. In Okmulgee, Oklahoma, dozens of jobs hang in the balance as office furniture giant Steelcase waits to hear back from the Commerce Department. A Steelcase subsidiary, PolyVision, operates a plant in Okmulgee that uses a special type of steel from Japan to manufacture a durable glass-like surface for whiteboards and architectural purposes. PolyVision “cannot and will not be able to procure” from U.S. companies the cold-rolled steel it requires “in a sufficient and reasonably available amount or of a satisfactory quality,” Steelcase said. Trump won most of the votes cast for president in Okmulgee County. Without a waiver, Steelcase warned, the “economic viability of PolyVision (and) the small town of Okmulgee” would be jeopardized. The waiver request also indicates that a $15 million plant expansion may be at risk. Steelcase and PolyVision are on the verge of making the investment, which would create new construction and manufacturing jobs, according to the request. Roger Ballenger, Okmulgee’s city manager, said he and other local officials are “very concerned about the situation with PolyVision.” The tariffs — 25 percent on imported steel and 10 percent on imported aluminum — are designed to protect and rebuild the U.S. companies that manufacture the metals. The U.S. temporarily exempted several major trading partners, including the European Union, Mexico and Canada. China, which was left on the target list, retaliated by imposing tariffs on $3 billion in U.S. products, including apples, pork and ginseng. Trump responded by adding more protectionist measures as punishment for Chinese theft of U.S. intellectual property. And Beijing punched back by proposing tariffs on $50 billion in U.S. products including small aircraft and soybeans — a direct threat to rural areas that were key to Trump’s victory. John Hritz, CEO of JSW Steel USA in Baytown, Texas, said his company is in lockstep with Trump’s approach. “We’re in favor of growing the steel industry in this country,” Hritz said. JSW Steel, owned by Indian conglomerate JSW Group, is embarking on a $500 million overhaul of the plant that it says will create hundreds of jobs. The growth would be welcomed in Baytown, where unemployment is 9.8 percent, more than double the national rate. Baytown is located partly in Harris County, which Democrat Hillary Clinton won, and partly in Chambers County, which Trump handily won. The future is much murkier for another Baytown steel business, Borusan Mannesmann Pipe. Without a waiver, Borusan may face tariffs of $25 million to $30 million annually if it imports steel tubing and casing from its parent company in Turkey, according to information the company provided to the AP. Borusan said the Baytown production line would no longer be competitive and “jobs would be threatened” if it cannot import 135,000 metric tons of steel annually over the next two years. The pipes Borusan produces are used primarily as casing for oil and natural gas wells. But if Commerce says yes, Borusan will be able to unlock a $25 million investment in the Baytown facility as it seeks to become a “100 percent domestic supplier,” according to the waiver request. An additional $50 million expansion in pipe fabrication capacity would follow, the company said, leading to as many as 170 new jobs. Seneca Foods Corporation, the nation’s largest vegetable canner, said in its waiver application that it’s unclear, at best, if U.S. suppliers have the ability or willingness to expand their production in the long term to meet the company’s annual demand for tinplated steel. But “clearly they cannot meet demand in the short term,” Seneca told Commerce officials. That means Seneca has to buy a portion of what it needs from overseas. A person with knowledge of Seneca’s situation said the company would face a $2.25 million duty if the Commerce Department doesn’t approve its waiver request for 11,000 metric tons of tinplate it already agreed to purchase from China. The material is to be delivered this year and next, according to the waiver request. The person was not authorized to speak publicly and spoke to the AP on condition of anonymity. Seneca said it employs more than 400 people at can-making facilities in Wisconsin and Idaho and near its headquarters in New York’s Wayne County, where Trump bested Clinton. The company doesn’t warn layoffs are imminent if the waiver isn’t approved. Instead, the tariffs would likely come out of Seneca’s bottom line, the person said. Republished with the permission of the Associated Press.
After close vote, panel sends Mike Pompeo nomination to Senate
Mike Pompeo, President Donald Trump’s choice for secretary of state, avoided a rare rebuke Monday as the Senate Foreign Relations Committee narrowly recommended him, but the vote served as a warning shot to the White House as nominees to lead the CIA and Veterans Affairs are hitting stiff resistance. Pompeo, who’s now CIA director, received the panel’s approval only after Trump’s last-minute overtures to Sen. Rand Paul, R-Ky. Pompeo’s nomination now goes to the full Senate, where votes are tallying in his favor and Senate Majority Leader Mitch McConnell said he looks forward to voting to confirm him later this week. Trump has been quick to fire his top cabinet secretaries, but Senate Democrats are not so fast to confirm replacements. A grilling is expected Wednesday of Ronny Jackson, the White House physician nominated to head the VA, and Pompeo’s potential replacement at the CIA, Gina Haspel, is also facing scrutiny. It’s also a reminder of how tough it could be to replace Deputy Attorney General Rod Rosenstein. Trump has publicly mused about firing Rosenstein, who is overseeing special counsel Robert Mueller’s investigation into Russian interference in the 2016 election. “Hard to believe,” Trump tweeted Monday about what he called “obstruction.” ″The Dems will not approve hundreds of good people… They are maxing out the time on approval process for all, never happened before. Need more Republicans!” Republicans hold just a slim Senate majority, 50-49, with the prolonged absence of Sen. John McCain, R-Ariz. Pompeo’s bid to become the nation’s top diplomat was in the hands of a few senators, but received a boost Monday when two Democrats, Sen. Joe Manchin of West Virginia and Sen. Joe of Indiana, announced their support. Pressure is mounting on senators from all sides. White House allies are unloading ad campaigns against Democrats from Trump-won states, but progressive groups are pounding senators’ offices in opposition. As soon as Sen. Heidi Heitkamp, D-N.D., announced her support for Pompeo, one group called on her to switch. Ahead of the Foreign Relations Committee’s vote, chairman Bob Corker, R-Tenn., said of the full Senate, “It does appear Mike Pompeo has the votes to be secretary of state.” Supporters point to Pompeo’s resume as a West Point and Harvard Law School graduate who has the president’s confidence, particularly on North Korea. Opponents are focusing on his hawkish foreign policy views and negative comments about gay marriage and Muslims. Paul’s earlier objections to Pompeo, along with overwhelming opposition from Democrats, had set the secretary of state nominee on track to be the first since 1925, when the committee started keeping records, not to receive a favorable recommendation. But Trump and Paul talked repeatedly, including a chat just moments before the vote. “I have changed my mind,” Paul said, explaining he received reassurances that Pompeo agrees with the president that the Iraq war was a “mistake” and that it is time for U.S. troops to leave Afghanistan. Paul’s office said he “got a win” — the promise that Pompeo sides with Trump on those issues — out of the situation, but declined to provide details. “I want Trump to be Trump,” Paul said. Asked about Paul’s change of heart, Trump said, “He’s a good man.” Senators are anxious to have Pompeo in place before international meetings scheduled for later this week and ahead of North Korea talks. Republicans blamed partisan politics for opposition, saying Pompeo is just as qualified as past secretaries of state nominees Hillary Clinton or John Kerry, both of whom received overwhelming support. “A majority of Democrats continue their pointless obstruction to score cheap political points with their base as a willful attempt to undermine American diplomacy,” said White House spokeswoman Sarah Huckabee Sanders. But Democrats resisted easy confirmation of the nation’s top diplomat, and support peeled. Sen. Maggie Hassan, D-N.H., who had been among more than a dozen Democrats who supported Pompeo for CIA director, announced her no vote Monday. “I am concerned that Mr. Pompeo has not demonstrated an understanding that the Secretary of State has an obligation to the American people to stand up for our core values,” she said. Sen. Chris Coons, D-Del., who was among the last Democrats on the foreign relations panel to announce his no vote, said he is concerned that Pompeo “will embolden, rather than moderate or restrain” Trump’s “most belligerent and dangerous instincts.” In a late setback Monday, the panel was short one Republican vote needed for a favorable recommendation because Sen. Johnny Isakson was delivering a eulogy in his home state of Georgia. Rather than postpone voting until his return very late Monday, Coons agreed to allowed his vote to be recorded as “present” so the committee could finish its work. Republished with the permission of the Associated Press.
Martha Roby: New Farm Bill gains momentum
I am proud to share some exciting news for Alabama’s farmers: The House Agriculture Committee has approved the Agriculture and Nutrition Act of 2018, more commonly known as the farm bill. I am very pleased by this important step to address the challenges facing farmers across our state and country, and I look forward to seeing the momentum continue as we eventually take the bill up on the House floor. As you know, agriculture is the largest employer in Alabama’s Second District, responsible for more than 93,000 jobs and $11 billion in economic impact. I know how important it is that we get the farm bill right on behalf of all the farmers in our state, so I’d like to share some key highlights of this critical legislation. One of the most consistent topics I hear from farmers in the Second District is about burdensome regulations. As you’re well aware, under the Obama Administration, our regulatory state grew by the minute, and the heightened government intrusion has been challenging for farmers and business owners alike. The new farm bill streamlines and reduces these regulatory burdens by reforming the Endangered Species Act (ESA) as it relates to pesticide registration to ensure that agricultural producers have access to the safest and most efficient crop protection tools. Overbearing rules implemented by federal agencies shouldn’t make farmers’ work harder than it needs to be, so I am proud these measures were included. Every time I sit down with farmers, regardless of the commodities they grow, I hear stories about troubles with feral hogs. I am glad to report that this farm bill creates a program and provides $100 million to address the destructive behavior of this invasive species. Under this farm bill proposal, the commodity protection programs in which all crops, like peanuts and cotton, participate gained flexibility to adjust to market prices while keeping the current overall structure in place. Additional protections strengthen the current crop insurance system that is vital to all in the industry. I know farmers, rural bankers, and rural businesses everywhere will be pleased by this. I’ve said several times that one of my top priorities for the remainder of the year is working with my colleagues in Congress and the Trump Administration to reinvigorate our country’s badly aging infrastructure. Roads and bridges are important, but another significant element is expanding access to broadband. Rural areas of our country should have the same access to broadband and infrastructure that urban areas do. The new farm bill authorizes substantial funding for rural broadband and requires the United States Department of Agriculture (USDA) to establish forward-looking broadband standards. You know as well as I do that many areas in Alabama’s Second District will benefit tremendously from increased access to broadband. Lastly, the new farm bill makes several needed improvements to USDA’s nutrition program, the Supplemental Nutrition Assistance Program (SNAP), or food stamps. This bill implements strict work requirements for SNAP recipients and closes categorical eligibility loopholes. This farm bill maintains nutrition assistance for our most vulnerable Americans when they truly need it while making a commitment to helping them improve their circumstances. I have always believed we should incentivize able-bodied adults to work instead of encouraging them to remain dependent on the government. I’m proud that the new farm bill reflects our conservative principles. There are many other positive elements of the new farm bill I could highlight, and I have been glad to be engaged in the process to this point. It is a true privilege to advocate for policy that helps the hardworking farmers in our state and district, and I am eager to see the momentum on this bill continue so we can move this important legislation over the finish line. At the end of the day, it is my job to ensure that our farmers are able to do what they do best: provide the food and fiber that sustains our country and the world. I will be sure to keep you informed as we move forward with the new farm bill. ••• Martha Roby represents Alabama’s Second Congressional District. She lives in Montgomery, Alabama with her husband Riley and their two children.
