Trump held a freewheeling White House meeting on trade — and it sounds like some of economists' worst fears could come true

pulse

February 13, 2018 8:56 PM

Lawmakers repeatedly attempted to urge caution on the use of tariffs, while Trump complained about unfair trade praticies by foreign countries.

President Donald Trump held a discussion with senators from both parties on trade, specifically possible action on steel and aluminum imports.
Lawmakers repeatedly attempted to urge caution on the use of tariffs, while Trump complained about unfair trade practices by foreign countries.

President Donald Trump held a meeting on trade at the White House on Tuesday and raised the spectre of possible protectionist policies while pushing back on senators suggestions that new tariffs could be bad for the US economy.

The meeting was to discuss possible upcoming action on steel and aluminum imports after a review by the Department of Commerce. Trump told the assembled group of bipartisan senators that the administration is considering "substantial tariffs" on these imports — particularly focused on China.

In the following discussion, lawmakers attempted to being up concerns over certain protectionist policies, but Trump mostly brushed off the concerns, saying the US is "

Trump complained that the US was like a "piggy bank to China," has defended Saudi Arabia and South Korea without getting anything in return, no longer makes TVs in the US, and that there were no American cars in Germany.

Economists have long worried that Trump's more protectionist trade positions could manifest in higher barriers to trade or tariffs. This in turn could cause countries to retaliate against the US and trigger a trade war in which other countries retaliate and increase tariffs of their own.

In the event of a trade war or serious retaliatory efforts, economists warned that in the worst-case scenario, the US would be pushed into a recession.

The president already set off alarm bells on the trade front by suggesting the US impose a "reciprocal tax" on imports during another meeting on Monday.

Similar concerns were raised by lawmakers from both sides of the aisle in the meeting. GOP Sen. Pat Toomey warned Trump of "retaliation" to any new steel tariff and said it could cause price increases for consumers.

esident George W. Bush in 2002 — which prompted a serious response from foreign countries — were brought up by GOP Sen. Lamar Alexander, Trump also downplayed concerns and implied the current administration could do it better than Bush.

"It didn't work for Bush, but it worked for others," Trump said.

Trump has until April 11 to make a determination on the steel and aluminum trade actions.

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