Why GOP Senate leader hopefuls might want to avoid talk of new Trump tariffs
11/12/2024 16:11The contest to be the face of Senate Republicans is coming to a head this week. One issue contenders might want to avoid during the final stretch is Trump's ambitious tariff plan.
The contest to be the new face of Senate Republicans is coming to a head this week, with three contenders all positioning themselves as the most acceptable choice to their colleagues and President-elect Donald Trump.
There is one issue none may want to dwell on during the final stretch: tariffs.
That's because all three men — Sens. John Thune of South Dakota, John Cornyn of Texas, and Rick Scott of Florida — have offered measured words in the past on Trump's unilateral authority to impose tariffs as well as whether they think tariffs are even a good idea.
Whoever wins will have to confront the issue in the months ahead as the next Senate Majority Leader replacing Mitch McConnell of Kentucky.
Trump has pledged to make tariffs a centerpiece of his second term agenda and ams to enact possible 60% duties on China in addition to 10% or higher tariffs for other US trading allies.
And the now president-elect also laid down a marker of sorts during the campaign, saying "I don't need Congress, but they'll approve it. I'll have the right to impose them myself, if they don't."
Just this weekend, Scott suggested he might differ, at least in terms of the process.
The US senator from Florida said a tariff action is "most likely is going to require 60" Senate votes to be enacted. "You have to get everyone together," he added in the Sunday interview on Fox.
Experts differ, but many say Trump could largely be right on this issue after recent decades where lawmakers have ceded much of Capitol Hill's tariff power to the Oval Office.
The president is now often allowed, after varying internal processes, to move unilaterally and keep lawmakers out of the loop if he wants.
Whether Scott, Thune or Cornyn will want to test the president's unilateral tariff authority remains to be seen, but the latter two candidates have offered critiques in the past.
In fact, when Axios looked this summer at Republicans breaking with then-candidate Trump on the issue, Thune and Cornyn were the top examples.
A particular concern is Trump's often-discussed "across the board" tariffs of 10% or higher on a wide array of goods, even from US allies.
"There are ways that you can selectively use [tariffs] as a tool to achieve economic policy outcomes, but just uniform, across-the-board tariffs is not something I have been for in the past," Thune told the outlet, with Cornyn adding that across-the-board tariffs could be potentially "problematic."
Thune, in particular, has long been critical of tariffs especially because of their negative impact on his agriculture-depending home state of South Dakota.
"They're a big problem for American agriculture and they're a big problem for South Dakota agriculture," he reportedly told a local television station in 2018 in the middle of Trump's previous tariff efforts.
Cornyn has also been wary of Trump's past efforts, telling reporters in 2018 of Trump's then proposed tariffs on steel and aluminum: "I do worry that once started, they're hard to end...and there can also be unintended consequences."
Sen. Scott is running as the favorite of Trump's most fervent allies (including Elon Musk) and doesn't appear to have ever criticized Trump's tariff plans.
But he was running for office himself in 2018 during the height of Trump's last trade war and has clearly heard the business-world worries.
"I have heard directly from Florida companies who are worried that the administration's proposal regarding tariffs is not fair and consistent between countries and this is an issue I will continue discussing with the administration," he said in a 2018 statement to the Tampa Bay Times.
And Scott made sure to underline just this weekend what he saw a role for the Senate in that upcoming debate.
"You're going to have to sit down with people and explain to them that workers in their state are better off if we hold China accountable," he said even as he called for complete overhaul of the Senate in other areas to "get Trump's agenda done."
Senate Republicans are set to gather this Wednesday and, in a secret ballot, elect a new leader among the three choices.
As for Trump, the question between now and then is how deeply he might wade into the race in the coming days.
This weekend, Trump did wade into the race on the issue of whether the next leader would allow recess appointments for his appointments.
All three of the candidates quickly responded that they consider confirmation of Trump's nominees a top priority, including pledges to look at the recess appointments issue.
Ben Werschkul is Washington correspondent for Yahoo Finance.
Every Friday, Yahoo Finance's Rachelle Akuffo, Rick Newman, and Ben Werschkul bring you a unique look at how US policy and government affect your bottom line on Capitol Gains. Watch or listen to Capitol Gains on Apple Podcasts, Spotify, or wherever you find your favorite podcasts.
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