Issuing ultimatum on trade

Grassley to meet with Trump after issuing ultimatum on trade

By MARIANNE LEVINE

Senate Finance Committee Chairman Chuck Grassley will meet with Donald Trump at the White House Thursday to discuss trade policy, days after effectively issuing an ultimatum to the president.

Grassley wrote an op-ed in the Wall Street Journal Sunday that criticized the Trump administration’s tariffs and called them a “significant roadblock” to passing the new NAFTA trade deal known as the U.S.-Mexico-Canada Agreement.

“If these tariffs aren’t lifted, USMCA is dead,” the Iowa Republican wrote. “There is no appetite in Congress to debate USMCA with these tariffs in place.”

The meeting was confirmed by Grassley’s spokesperson. In addition to Grassley, Sen. Rob Portman (R-Ohio) and other members of the Senate Finance Committee will meet with the president, according to sources familiar with the meeting.

The meeting comes as Senate Republicans have reiterated their concerns about Trump‘s tariffs and as the White House prepares to negotiate with House Democrats on the U.S.-Mexico-Canada agreement. Earlier this month, House Speaker Nancy Pelosi said that she will not consider the trade agreement until after Mexico passes and implements major labor law reform.

The tariffs are of particular concern to farmers in Iowa. A study from Iowa State University projected that the tariffs could cost the state’s farmers up to $2.2 billion in revenue.

Grassley’s Iowa colleague, Republican Sen. Joni Ernst, also reiterated her concern about the tariffs’ effect on the state at a press conference Tuesday.

“Right now the tariffs that we have on those products are overwhelming and it is hurting our farm and agricultural income,” she said. “I continue to visit with the president about these issues and encouraging him not only to get the trade deals as soon as possible…. but also to remove those tariffs so that we can move forward.”

Portman has also introduced bipartisan legislation to potentially curb Trump’s tariffs.

Under the Ohio Republican’s legislation introduced earlier this year, the Department of Defense would have to justify the national security basis for imposing tariffs under Section 232 of the Trade Expansion Act, which the administration has cited to issue its steel and aluminum tariffs.