“My fear is the president’s going to walk back a lot of the progress that he’s made," he says.
House Financial Services Committee Chairman Jeb Hensarling warned President Donald Trump on Tuesday against pressing forward with a broad package of tariffs on foreign aluminum and steel, cautioning that such a move could undo the economic benefits of the tax cut package he signed late last year.
“The president has got to be very, very careful here. And if he follows through with it, and it appears that he is, I’ve encouraged him to be very, very surgical,” Hensarling (R-Texas) told CNN Tuesday morning. “I disagree with the president. I don’t know of any trade war that ends well. That’s not my reading of history.”
Trump announced last week his intention to impose a 25 percent tariff on steel imports and 10 percent on aluminum, a step he has said is intended to protect American workers. But the move has been met with opposition from many in the Republican Party, which has historically been a supporter of free trade.
The president’s announcement has also received a chilly reception from some of America’s largest trading partners, including Canada and the European Union, the latter of which has threatened to impose retaliatory tariffs against imports from the U. S.
Hensarling, who announced last October that he would not seek reelection in this year’s midterms, heaped praise upon the president for the package of tax cuts and reforms that he and Congressional Republicans shepherded into law late last year. The House Financial Services Committee chairman predicted consumers would bear the brunt of any tariffs and that Trump’s announced moves would cancel out the economic benefits of the tax legislation and regulatory rollback he has championed.
“My fear is the president’s going to walk back a lot of the progress that he’s made and I don’t see winners in trade wars,” Hensarling said. “We’ve got, you know, 300 million people who consume steel and aluminum. I mean, is this going to send up the price of a six-pack at a grocery store? Well, you know, it very well may. But we all consume this and I’m afraid this is going to hurt consumers. I think it’s going to lead to a net loss of jobs.”
