House Co-Author of Bill to Constrain President on Section 232 Looking for Co-Sponsors

The House companion bill to Sen. Pat Toomey's attempt to roll back Section 232 tariffs (see 1901300022) was co-authored by two Democrats and two Republicans, and one of those Republicans, Rep. Mike Gallagher, R-Wis., said his near-term goal is to get 50 co-sponsors. So far, there are 17. One of the lead co-authors, Rep. Ron Kind, D-Wis., has been on the House Ways and Means Trade Subcommittee for years, and Gallagher is hoping he can get some traction in the committee. A spokesman for the new Trade Subcommittee chairman did not respond to a question about the bill by press time.

"I think we have a little bit of ways to go," Gallagher said. But he acknowledged that even if the bill gets a vote on the House floor, it may not have enough support to become law. "There are definitely Republicans that have a different view than I do on tariffs and trade, more aligned with the White House," he said in a phone interview with International Trade Today while back in his home district. Gallagher said it's also his sense -- though he can't point to any specific conversations he's had with colleagues -- that there are Republicans who are pro-free trade but "don't want to poke the president" by voting for a law that aims to take away his power to levy tariffs on a national security basis.

Gallagher said the new version of this bill, which exactly matches the Senate version, was inspired by hearing from constituents. He said his district is home to manufacturers that are steel consumers, to large farms that are steel consumers, and to cheese producers that have lost sales because of Mexican retaliatory tariffs on U.S. cheese. He said the longer the tariffs are in place, "the risk increases you don't get that customer back." Gallagher said his district is home to Oshkosh Truck, which builds joint light tactical vehicles, and Pierce Manufacturing, which builds fire trucks. Small companies, too, that buy steel, have complained. In some cases, they have told him that the additional cost of metal -- and canceled orders due to retaliation -- have canceled out the benefits they received from tax cuts. "I've heard so many anecdotes," he said.

Gallagher said that aside from his philosophical view that Congress gave away too much of its authority with the 1962 trade law, he also thinks the global approach of the Section 232 tariffs on steel and aluminum is counterproductive to tackling Chinese market distortions that have led to overcapacity. "I salute what the president's doing on 301 on China," he said. "On a practical matter, I don't think it makes sense to pick a fight with Canada and Europe" when they could help confront China.