Trump Sounds Protectionist Tone in Speech to Joint Session of Congress
President Donald Trump struck a noticeably protectionist tone during his speech (here) before a joint session of Congress Feb. 28, citing a warning by former President Abraham Lincoln that abandoning the “protective policy” would devastate American society, while trumpeting free and fair trade. “It’s been a long time since we had fair trade,” Trump said. “The first Republican president, Abraham Lincoln, warned that the abandonment of the protective policy by the American government will produce want and ruin among our people. Lincoln was right, and it’s time we heeded his advice and his words.” Trump said several countries make exporting U.S. companies pay “very high tariffs and taxes,” but the U.S. charges foreign companies who ship products here “nothing or almost nothing.” For instance, Harley-Davidson executives and workers told Trump in a recent meeting that it’s difficult to do business overseas because of high taxes on U.S. goods, in one case, even taxing Harley motorcycles at 100 percent, Trump said. “They weren’t even asking for a change,” he said. “But I am.”
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Without mentioning border adjustability, Trump emphasized that his team is working on “historic tax reform” that will reduce the corporate rate so U.S. companies are encouraged to stay in the U.S. and can better compete with foreign firms. “It will be a big, big cut,” he said. “At the same time, we will provide massive tax relief for the middle class. We must create a level playing field for American companies and our workers -- have to do it.” Trump also tied the loss of one-quarter of U.S. jobs over the past 25 years to the approval of NAFTA and the loss of some 60,000 factories over the past 15 years to China’s 2001 accession to the World Trade Organization. Trump also cited a “nearly” $800 billion U.S. trade in goods deficit in 2016. The U.S. trade in goods deficit was $750 billion last year, according to Census Bureau data (here).
Reactions from top congressional trade voices were largely split along party lines. In statements, Senate Finance Committee Chairman Orrin Hatch (here), R-Utah, and House Ways and Means Committee Chairman Kevin Brady (here), R-Texas, both praised Trump’s words on “pro-growth tax reform.” Senate Finance ranking member Ron Wyden (here), D-Ore., and Rep. Rosa DeLauro, D-Conn., criticized Trump’s tax plan. Brady expressed encouragement that Trump’s call for tax reform would empower job creators and level the playing field for U.S. workers, while Hatch said Trump is charting a tax reform agenda that will make U.S. commerce more globally competitive.
Email ITTNews@warren-news.com for a copy of DeLauro's statement.