WASHINGTON, Jan 31 (Reuters) - Concerns are growing among Congressional Republicans about President Trump's 2024 campaign promise to impose tariffs on imports, even from close U.S. allies, fearing potential negative impacts on their states' economies.
Facing a self-imposed Saturday deadline, Trump may place 25% tariffs on imports from Canada, Mexico, and elevate tariffs on Chinese goods. This move could raise prices of imported goods and incite retaliatory tariffs affecting exports.
Several Congressional Republicans cautiously expressed unease about the risks posed without openly criticizing Trump's decisions.
Expressing his concerns, Republican Senate Majority Leader John Thune from South Dakota, known for its agricultural significance, mentioned, I’m not a big fan of across-the-board, universal uniform tariffs...because of the impact on the ag community. He stressed the uncertainty of the tariffs Trump might implement.
South Dakota is among 39 states heavily reliant on Canada and Mexico as top export markets. Of these, Trump won 26 in 2024, with 16 having exports exceeding $500 million annually to Canada or Mexico, valued at over $354 billion and $322 billion, respectively, according to Reuters' analysis of U.S. Census Bureau data.
Senator Thom Tillis advocated using tariffs as leverage on Mexico to address issues related to fentanyl and migration, and on Canada to boost its defense spending within NATO. However, Tillis, whose state exports over $700 million to Canada yearly, warned of potential price hikes, emphasizing caution.
Senator Chuck Grassley of Iowa, a proponent of free trade, maintained a cautious stance, stating, Normally I'd be stronger in my comments... but now I am in the minority.
The prospect of new Trump tariffs stirred varied responses among constituents, with concerns about potential repercussions in sectors like agriculture. The experience of increased Chinese tariffs in the previous administration has left some less apprehensive about Trump's latest tariff proposals.
Trump's agriculture secretary nominee, Brooke Rollins, indicated that additional spending might be necessary if tariffs are initiated, possibly complicating the president's plans to offset the 2017 tax cuts.
Republican Senator Rand Paul defended free trade principles, amid concerns raised by the impact of retaliatory tariffs on U.S. exports during Trump's first term.
While some senators supported Trump's tariff strategy, others, like Alberta Premier Danielle Smith from Canada, sought to engage diplomatically with U.S. senators to emphasize the interconnectedness of their economies.