Paul Ryan threatens to block Trump’s tariffs in US congress

Republicans are split over Trump’s tariff cuts amid fears of a damaging trade war.

From left, House Speaker Paul Ryan, Karen Pence, Vice President Mike Pence, Melania Trump (obscured) and Donald Trump in Washington. Picture: AP

Splits within the Republican Party over Donald Trump’s proposed tariffs on steel and aluminium widened yesterday as House Speaker Paul Ryan expressed his opposition and warned of a damaging trade war.

Mr Ryan and GOP colleagues are lobbying the US President to drop the tariffs — and are reportedly considering legislative action to stop him if he refuses — amid concerns the move will undermine the $US1.5 trillion ($1.93tn) in tax cuts and affect ­November’s midterm elections.

“We are extremely worried about the consequences of a trade war and are urging the White House to not advance with this plan,” Mr Ryan’s spokeswoman said. “The new tax reform law has boosted the economy and we certainly don’t want to jeopardise those gains.”

Members of the House Ways and Means Committee also drafted a letter to the President expressing concern about “the prospect of broad, global tariffs on aluminium and steel imports”.

Mr Trump on Friday said he would levy tariffs of 25 per cent and 10 per cent on steel and aluminium imports on the grounds of “national security”. He is expected to sign the new tariffs into law this week.

He dismissed fears of a “trade war” yesterday and said he was not “backing down” from plans to impose the sweeping tariffs, even as a new report by The Trade Partnership found the move would result in a net loss of 146,000 US jobs. More than five jobs would be lost for every one gained, according to the report.

Asked about Mr Ryan’s comments, Mr Trump said: “We’re not backing down”. He would exempt Mexico and Canada, the biggest importer of steel and aluminium, only if a “new and fair” North American Free Trade Agreement were signed.

“We are renegotiating NAFTA, as I said I would, and if we don’t make a deal I’ll terminate NAFTA. But if I do make a deal which is fair to the workers and to the American people, that would be, I would imagine, one of the points that we’ll negotiate — will be tariffs on steel for Canada and for Mexico,” he said.

“People have to understand our country on trade has been ripped off by virtually every country in the world, whether it’s friend or enemy, everybody. China, Russia, and take people that we think are wonderful — the European Union — we can’t do business in there. They don’t allow it. They have trade barriers that are worse than tariffs.

“If they want to do something we’ll just tax their cars that they send in here like water. We may have friends but remember this, we lost over the last number of years $US800 billion a year.”

Mr Trump said China was “the biggest problem” as he ramped up his rhetoric against the Asian superpower, the 11th-largest importer of steel to the US.

“The biggest problem is China. We lost $US500bn. How previous presidents allowed that to happen is disgraceful but we’re going to take care of it.”

But he added: “I don’t think you’re going to have a trade war.”

Canada, the US’s largest trading partner, and the EU have warned of retaliatory measures while Australia is urgently seeking exemptions for the $US210m in steel and $US213m in aluminium imported annually to the US.

The White House has ruled out exemptions unless Mr Trump changes his mind, while the option of excluding individual firms from the tariffs has been left open.