GOP Senate Finance Committee chair warns Trump's Mexico tariffs imperil his 'big victory' on the NAFTA reboot


Financial markets were not pleased with President Trump's announcement Thursday that he will impose new, gradually increasing tariffs on all Mexican imports "until such time as illegal migrants coming through Mexico, and into our country, STOP." Plenty of conservatives were unhappy, too. The Heritage Foundation's James Carafano and Jack Spencer, for example, said the tariffs are "the wrong policy" to address the border "crisis" and would "punish our citizens." Phillip Klein at The Washington Examiner called it "mindbogglingly stupid on so many levels."
White House Chief of Staff Mick Mulvaney said Trump is imposing the tariffs, starting at 5 percent and rising to 25 percent, under the International Emergency Economic Powers Act, which gives presidents authority to regulate commerce during a national emergency. Republican leaders in the House and Senate were largely supportive of the tariffs, he added.
Senate Finance Committee Chairman Chuck Grassley (R-Iowa) was not supportive. "Trade policy and border security are separate issues," he said in a statement. "This is a misuse of presidential tariff authority and counter to congressional intent. Following through on this threat would seriously jeopardize passage of USMCA, a central campaign pledge of President Trump's and what could be a big victory for the country."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The White House has just started the process toward possible ratification of the U.S.-Mexico-Canada Agreement (USMCA), an update to NAFTA, earlier Thursday, and ratification is uncertain in the House. At the Examiner, Klein agreed that slapping tariffs on Mexican goods will "surely disrupt" the USMCA ratification process, and he listed four other objections, including that the tariffs amount to "a tax increase of up to 25 percent on American families and businesses purchasing any products from Mexico, one of the U.S.'s leading trade partners."
"Congress should immediately intercede to block this reckless policy by reclaiming its traditional power over tariffs," Klein concludes. "House Democrats should pass something and force Senate Republicans to either rebuke Trump's policy, or answer for their cowardice." Grassley?
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
Samsung to make Tesla chips in $16.5B deal
Speed Read Tesla has signed a deal to get its next-generation chips from Samsung
-
FCC greenlights $8B Paramount-Skydance merger
Speed Read The Federal Communications Commission will allow Paramount to merge with the Hollywood studio Skydance
-
Tesla reports plummeting profits
Speed Read The company may soon face more problems with the expiration of federal electric vehicle tax credits
-
Dollar faces historic slump as stocks hit new high
Speed Read While stocks have recovered post-Trump tariffs, the dollar has weakened more than 10% this year
-
Economists fear US inflation data less reliable
speed read The Labor Department is collecting less data for its consumer price index due to staffing shortages
-
Trump is trying to jump-start US manufacturing. Is it worth it?
Today's Big Question The jobs are good. The workers may not be there.
-
What is the dollar's future after Moody's downgrade?
Today's Big Question Trump trade wars and growing debt have investors looking elsewhere
-
Crypto firm Coinbase hacked, faces SEC scrutiny
Speed Read The Securities and Exchange Commission has also been investigating whether Coinbase misstated its user numbers in past disclosures