WARWICK – The Rhode Island congressional delegation told an audience of business representatives Monday that tariff policies enacted by the administration of President Donald Trump could have unintended consequences, including higher supply costs for United States manufacturers.
The delegation, speaking at the Greater Providence Chamber of Commerce annual Congressional Breakfast, had an audience of about 400 business people.
Audience members also included the presidents of several Rhode Island colleges and universities, specifically University of Rhode Island, Roger Williams University, Rhode Island College and the Community College of Rhode Island.
All members of the Rhode Island delegation attended.
When asked to address the issue of tariffs and international trade, U.S. Sen. Jack F. Reed said it didn’t appear Trump has a cohesive plan.
Several months ago, the administration announced it would place a 25 percent tariff on imported steel, and 10 percent on aluminum, but later held back when it learned Canada supplied the most imported steel to the U.S.
“One of the things that’s unsettling, is there doesn’t seem to be a plan,” Senator Reed said. “I have not yet sensed a focused, well-directed strategy on trade that will advance our interests without (impacting) our companies.”
It is now common to hear of manufacturers whose suppliers are charging increased prices as a result, he said.
Laurie White, the chamber president, observed that one Rhode Island manufacturer, Bradford Soap Works Inc., uses an ingredient, tallow oil, which rises and falls with the price of soybeans.
The manufacturer presented a question for the delegation, through White, asking the representatives whether they thought a tariff on U.S. soybeans would be included as potential Chinese response to the new tariffs.
“This is a real live example of something that might seem a bit obtuse, but is very real,” White said.
Sen. Sheldon Whitehouse said this is the problem with “getting into these trade contests, these trade wars. You are provoking counter-reactions from other countries.”
“It is very hard to anticipate what those counter-reactions might be. And it sets off a chain of consequences that is very, very difficult to anticipate. And businesses care a lot about certainty.”
It does look as though the Chinese are going to hit soybeans hard, Whitehouse said, which is concerning members of Congress, particularly those in agricultural states.
The chamber breakfast was held in Warwick at the Crowne Plaza Providence-Warwick.
Mary MacDonald is a staff writer for the PBN. Contact her at macdonald@pbn.com.
