U.S. Rep. Jackie Walorski (R-IN) has expressed serious concerns about the negative impacts on industry in her home state and on the overall national economy that could result from President Donald Trump’s extensive tariffs plan for steel and aluminum imports.
“Early feedback from manufacturers in my district has me worried that immediate, blanket tariffs could reverse the economic recovery and return of manufacturing jobs to northern Indiana,” Rep. Walorski wrote in a March 2 letter to Trump.
The congresswoman noted that one manufacturer in her district already had canceled plans for a new plant after hearing the tariffs announcement while another said his steel coil suppliers told him to expect less supply and higher prices, consequently forcing the owner to start laying off workers rather than passing on the cost increases to customers.
“The economy of Indiana’s 2nd District is driven by RV, trailer, boat, and other heavy manufacturers and their suppliers. 23.1 percent of the jobs in Indiana’s 2nd District are manufacturing jobs, the second-highest percentage in the country,” Walorski wrote. “Business is booming for them right now.”
Rep. Walorski also pointed out that immediate, blanket tariffs are likely to start a trade war that would further hurt her district — parts of which have among the nation’s highest export intensity, according to the Brookings Institution.
Trump announced his tariffs plan on March 1 during ongoing trade talks with Canada and Mexico as a way to balance competition for American companies. He plans to institute tariffs of 25 percent for steel imports and 10 percent for aluminum imports. Trump said this week that the planned import tariffs are imminent unless an acceptable North American Free Trade Agreement (NAFTA) is signed.
“We have large trade deficits with Mexico and Canada. NAFTA, which is under renegotiation right now, has been a bad deal for U.S.A. Massive relocation of companies & jobs. Tariffs on Steel and Aluminum will only come off if new & fair NAFTA agreement is signed,” Trump tweeted on March 5.
Such a plan, Rep. Walorski wrote to the president, “will upset ongoing negotiations on the North American Free Trade Agreement (NAFTA) and the U.S.-Korea Trade Agreement (KORUS) and imperil any potential future negotiations.”
In turn, she wrote, this also could harm America’s international leadership by negatively affecting the U.S. economy, its military, its military supply chains, and the nation’s allies. “I implore you to approach these tariffs with balance,” the representative wrote.