Trump continues to back aluminum and steel tariffs despite Republican fears of a trade war

David Jackson | USA TODAY

Show Caption Hide Caption Trump tariff plan is for 'forgotten' Americans White House press secretary Sarah Huckabee Sanders says President Donald Trump's decision to impose tariffs on imports of steel and aluminum "shouldn't come as a surprise to anyone." (March 1)

WASHINGTON — President Trump said Monday he is moving ahead with tariffs on imported aluminum and steel despite calls from House Speaker Paul Ryan to avoid creating what Ryan called an unnecessary trade war.

“We are extremely worried about the consequences of a trade war and are urging the White House to not advance with this plan," said AshLee Strong, Ryan's spokeswoman. "The new tax reform law has boosted the economy, and we certainly don't want to jeopardize those gains.”

"We're not backing down" on tariffs, Trump said in remarks before a meeting with Israeli Prime Minister Benjamin Netanyahu. "We had a very bad deal with Mexico, we had a very bad deal with NAFTA," the North American Free Trade Agreement with Mexico and Canada.

Trump started his week with tweets that said he may end the tariffs on Mexico and Canada in exchange for better terms in the talks to renew NAFTA.

Trump did not provide many details in a pair of tweets, except to say that Canada "must treat our farmers much better," while Mexico "must do much more on stopping drugs from pouring into" the United States.

"NAFTA, which is under renegotiation right now, has been a bad deal for U.S.A.," Trump tweeted. "Massive relocation of companies & jobs. Tariffs on Steel and Aluminum will only come off if new & fair NAFTA agreement is signed."

We have large trade deficits with Mexico and Canada. NAFTA, which is under renegotiation right now, has been a bad deal for U.S.A. Massive relocation of companies & jobs. Tariffs on Steel and Aluminum will only come off if new & fair NAFTA agreement is signed. Also, Canada must.. — Donald J. Trump (@realDonaldTrump) March 5, 2018

...treat our farmers much better. Highly restrictive. Mexico must do much more on stopping drugs from pouring into the U.S. They have not done what needs to be done. Millions of people addicted and dying. — Donald J. Trump (@realDonaldTrump) March 5, 2018

More: 5 ways U.S. tariffs on steel and aluminum could affect American consumers

More: U.S. Republican lawmakers warn Trump on tariffs

More: Trump administration downplays effect of a trade war on American consumers

Contrary to Trump's claims, the United States has a trade surplus with Canada.

Canada is also the top exporter of steel and aluminum to the United States, and the biggest importer of American steel and aluminum.

Trump's tweets kicked off a week in which he plans to sign new tariffs of 25% on steel imports and 10% on aluminum imports, a move that has drawn criticism from economists who say it will spark a trade war and higher prices for consumers worldwide.

While the tariffs are targeted more at China, other countries may be affected. Officials in Canada, Mexico and other nations have attacked Trump's plan, and some say they may authorize counter-tariffs targeting American products from bourbon to blue jeans.

Aides said there are no plans for exemptions but that Trump could always decide otherwise.

"He has made a decision at this point, 25 and 10," said Commerce Secretary Wilbur Ross, speaking Sunday on NBC's Meet The Press. "If he for some reason should change his mind, then it'll change."

The president also left his plans unclear, tweeting later in the day: "To protect our Country we must protect American Steel! #AMERICA FIRST."

To protect our Country we must protect American Steel! #AMERICA FIRST — Donald J. Trump (@realDonaldTrump) March 5, 2018

Trump made trade a major focus of his 2016 presidential campaign, claiming other countries were taking advantage of the United States.

He pledged to place tariffs on foreign products and threatened to end the North American Free Trade Agreement with Canada and Mexico unless they signed off on changes to NAFTA, the subjects of ongoing negotiations.

Many Republican allies of Trump oppose the tariff plan. In addition to concern about higher prices, they said American jobs could be lost in industries that rely on steel and aluminum.

"For every steel worker job that might be saved because of a tariff, our country will lose even more American jobs in auto plants, construction and so many other industries," said David McIntosh, president of the anti-regulation Club for Growth.

Citing political as well as economic impacts, McIntosh said that "tariffs will also harm the pro-growth effects of the tax cuts, stall the economy, incite a trade war and help hand the (2018 congressional) election to the Democrats."