Transcript for President Trump signs tariff proclamations amid pushback

I am Ron Claiborne ABC news world headquarters in New York reduced leaving a spell to report a George Stephanopoulos reporting to the president president from. As officially announce the imposition of those tariffs that he first disclosed. Last week 25%. On imported steel 10%. On imported aluminum president announcing got along with some steel aluminum workers and cabinet members at the White House distant few moments ago. Joining us now from Washington DC Archie political director our chief political director at recline. And Bryant Riley from the National Taxpayers Union want to turn to Rick first Rick very quickly politically. And separately economically. Who's winning who loses from this I'm both sides. This is a tectonic policy shift and it ships the politics as well. Both parties have had kind of the mainstream consensus for generations now the free trade. Is a good thing and that's been the movement we've seen that break down and now dramatically the president. Reversing course imposing this Tara. If you believe the economists and there's a lot of them out there this is going to have massive repercussions throughout the American economy. It is going to mean higher costs on everything from your soda can Alter the cars that you purchased in the airplanes that the government purchases to that trickles throughout the economy so it does have an undeniable impact on the steel industry you'd expect that do very well and maybe some politics there president tropical city of Pittsburgh just a couple of days the campaign for congressional race. That's happening next week. But in terms of the the broader policy here a lot of economists are extremely skeptical about this and I've never seen anything like. It's up attempt by Republicans try to get the president to change his mind they think it's bad politics bad policy in just a bad idea. Let me bring him very quickly seek went of correspondent Jonathan Karl the ABC news bureau who I was just on that special report John. Why did the president do this as we know he has been a life long a supporter of trade issue this side of trade issues why this why now. All this has been something that he has been a true believer and he he believes that America has been getting bad trade deals forever this is something he's written about in his books something he campaigned about it's not surprising that he would go forward with this what. Is surprising though is the process because he does. Have an economic team and a national security team. It was deeply divided on this on his top economic advisor Gary Kohn announced his leaving the White House yesterday. And he's leaving the White House largely if not entirely because the president failed to exit bites on this and again Gary Cohn. Did not just oppose this has a policy disagreement but warned it would have disastrous repercussions for the American economy he's the chief economic advisor. When you're the chief economic advisor to the president does something that you think is going to do series to hammers the American economy. It's time to leave and this is our national security thing you know I'll rock and the reason the president you heard the president talk but the he is raising these tariffs under a provision that allows him to do this for national security reasons. What's interesting is the key players on his national security team I'm told. Including the Defense Secretary Mattis including his national security advisor HR McMaster were opposed to this move as well. So this was a deeply controversial move with in the White House and he org rec talk about how it's obviously deeply controversial within the Republican Party. And Chinese cited national security a number of times. In that announcement today essentially as a requirement there what is as Lisa stay possibly even after mr. security. Argument. And if you're going to exempt if you do exempt met Canada and Mexico how is that consistent. Welded -- security argument is essentially that it if you do not have an effective steel industry. It in your country. You don't have the ability to ramp up steel production in the case the national security and emergency for your military so that's the Altima an argument but. When you are sanctioning our allies. It makes it harder to make that argument and when your top national security advisors. Are opposed to it it's hard to make that argument for the exemptions. Four. For for Canada and Mexico. Are largely tied to NAFTA and and those are not permanent exemptions. The Prez is basically using that as a negotiating tools he renegotiate NAFTA to get concessions perhaps elsewhere. From Mexico and Canada in return for not allowing these terrorists take place a case of you know imports from Canada Max. Are interrupted Jon Karl thanks for joining us look like track and we're out of busy evening ahead go back to work that you. OKV and backed recline in Washington very very quickly where is this likely at least temporarily to play well. And not well in this country. Well the steel industries happy today in the box pick up that you've seen announcements the president reference that there's going to be some additional investments in steel and aluminum production. And I mention Pittsburgh the president will be there just a couple of days in. I've got to think that's going to be a good applause line when he is at that rally on Saturday. It might need to talk a lot of political folks who say maybe that is the difference maker in this very close brush election. I'd say look if your if your if you're risking a trade war based on one house race in the middle of march in Pennsylvania that's quite a risk indeed. But that might needed that the parts of the base and I I can go back with the Paris what he's at after the Paris the climate accord he pulled out from that he said look I'm the president of Pittsburgh not Paris this is the ultimate example that in my mind. But gave Bryant Riley is via director of the national. Taxpayer union let me turn to you very very quickly here mr. mr. Reilly the president has said. Trade wars are good in effect bring it ought what do you think. Was up president Herbert Hoover that's what felt like I was listening to correct it's just shocking that this is not you know as President Reagan was not on his list of presidents he was. Fighting isn't as background for his policy the other thing I noticed you know who wasn't on the stage car workers manufacturing workers. Farmers ranchers all the people are gonna pay the price for this isn't just the president picking winners and losers we need a president is more like Reagan. That's like who I really don't know what happened that he was bamboozled by his trade advisor because this is something that know we'll compliments. Rick police and it's ludicrous it's going to be bad for the United States hopefully we think it's him. How do you see this playing out do you expect me this is the first volley in what will be a trade war. Well the problem is these can lead to unintended consequences we know for sure it's gonna raise the price of manufacturing the United States higher aluminum prices higher steel prices. That means it's cheaper to produce in other countries overseas instead of here in the United States. And we also know that other countries are likely to retaliate and the idea that we're gonna use this as some later. Blackmail Canada and Mexico to drill on NAFTA negotiations that's no way to conduct negotiations maybe it is in business I don't know but not an international trade. It's something that's gonna backfire on us and even without getting due to retaliation we know this is a tax we know what's gonna drive up costs for Americans. We really need to rethink this and again we need to go and Reagan free trade free market position. Not have the president picking winners and losers. He's not cause he's not quoting President Reagan but he did quote and this is unusual nowadays a president William McKinley. With the president more than a hundred years ago who beat commerce secretary who strongly support of this Wilbur Ross has made the point and over the past few days. Holding up a a can of beer or citing a hypothetical cannon Beers saying hey this can't appears made of aluminum and it's only gonna go up a fraction of the penny. I find that outrageous I called the office space argument we will skim half cent year on a penny there are in the soccer's won't notice that they're paying more. And will funnel it tore political supporters that's no way to conduct economic policy Rick. An abrupt turning to erect a got 100 more than a hundred Republican. House members in effect. Pleaded with the president don't do this. Yet on I haven't yet he like it's and you think about all of the things that the president has done over the last year plots and office. You think about Charlottesville you think about the insults you think about. That'll that the political battles the wars all of the controversies and scandals of the last year plus heat in stormy Daniels in the news this week. The thing is got Republicans look. Drawing that Linus and I think this is not acceptable. It is this issue of Paris. And any cuts to the heart of what it means to be conservative what it means to be Republican it cuts very close to home for people like Paul Ryan we heard the reference few moments but the Harley-Davidson. Right there in Wisconsin a Kentucky urban in Mitch McConnell told state of Kentucky so all of these issues kind of crash together to make this. Of the big V one that Republicans really can't thought they feel like this is a betrayal of conservative principles particulate plays that politically and it on a policy level. It is going to wipe out some of the gains they soften the tax cuts. Ultimately costing American jobs costing American workers because it will be passed on to American workers as they go about the normal lives and it does as as we just heard a moment ago from Bryant does choose winners than losers that favors one industry steel over other industries that a couple of pennies here in the area adds up over time and it really is redistributed is there's not another way around in the White House. Is minimizing the impact in the thank you see it Wilbur Ross example maybe a penny and after the six fact that's all well and good but it does add up over time and it's undeniable. Rick and aside from there the substance of the policy here. Talk a little bit about. The process but for starting with the president announcing. Almost in a closely held secret that is top economic deprived that you know about. That is going to impose these these air that was last week in saying it would apply to every country. And it would not apply to Mexico and and in Canada possibly Australia. Gary Cohn leaving. Do these sort of bizarre whip lash today about whether there would be announcement it would that will be an announcement that turned out to be an announcement what does this say about the and by Hughes were alleged but alleged chaos in the White House at least as far as this. You know the president crack a joke over the weekend he says I like chaos in my mind told the joke really is all the White House because chaos is what they've gotten. And to my mind all of the the staff turmoil in the churn that they scene with people heading for the exit it has been wrapped up with policy and specifically this policy. Because it it's this one that drove Gary Cohen over the edge and it's this one that was created really ought to fly by the president we go he decided to announce that surprising even his. It used Tonys and advisors. Our colleagues is that you bagel is reporting at the White House today that she was hearing conflicting things from senior White House aides. As to whether today's announcement was going to go forward. And as you mention Ron today's announcement already looks different than the one week ago the president has bought this promising more flexibility at the same time saying he's going to be very firm in this so. A lot of the arguments that we've seen economic and political arguments have already collapsed on to themselves as the president. Has forced the policy apparatus to adjusted. What are essentially his wins. Rick it sure seems like a lot of acquitted to put it nice there diplomatically. Lot of improvisation. Going on here over a very big deal. I think that's right and I think I it's hard says it's hard look at this setback since they've anything other than improvisation and I think. The president is a disruptive and he's in a prop player herta a former White House he told me that correctly that look. You guys cover it as if it's a scripted drama over there he plays and prop. And he's used to that his idea here is to disrupted a major way. Force other people who negotiating table forced people in his direction you can to a lot of that as president we just haven't seen it before even William McKinley packed adventure can play it quite like this rob. Okay recline are political director joining us from Washington seat along with Brian Reilly. From the national taxpayer union Brian thank you for joining us the gift wrap up very quickly thank you. President drop. After yet promised a week ago announcing those tariffs on. Imported steel 25%. Imported aluminum 10% bills will go in effect in fifteen days width. At least for now an exemption for our neighbor to the north Canada our neighbor to the south. Mexico I'm Ron Claiborne reporting from ABC news headquarters in New York thanks for joining us.

This transcript has been automatically generated and may not be 100% accurate.