News Releases

Thursday, June 7, 2018

Isakson Sponsors Legislation to Require Congressional Approval of New Taxes

Bill requires president to submit to Congress any proposal to increase tariffs on 'national security' grounds

WASHINGTON – U.S. Senator Johnny Isakson, R-Ga., this week cosponsored legislation that would require Congressional approval of any tariffs levied on imports in the name of national security under Section 232 of the Trade Expansion Act of 1962. This legal authority has been recently used by President Trump to impose tariffs on steel and aluminum imports and to launch an investigation into the national security implication of imports of automobiles and auto parts. 

The bill requires the president to submit to Congress any proposal to levy tariffs on imports based on national security concerns under Section 232.  The bill sets up a 60-day period to introduce legislation to approve the proposal, which would then receive expedited consideration, guaranteeing the opportunity for debate and an up-or-down vote. The requirement would apply to all future Section 232 actions and those taken within the past two years.

“I support President Trump’s efforts to confront the unfair trade practices of countries like China that threaten our economy and our national security,” said Isakson. “However, new taxes levied against our national security allies like Europe, Japan, and Canada deserve a full debate in Congress. American manufacturing is expanding at its fastest pace since 2004, but I’m hearing from too many Georgia manufacturers who fear that overly broad tariffs will slam the brakes on the pro-growth, pro-jobs agenda that Congress and the president have been fighting for. Trade wars do not solve the problems they are intended to address, but inevitably create more trouble. It is my hope that by passing this legislation, Congress will be able to work more closely with the administration to address unfair trade policies with a targeted approach that does not harm American workers and consumers.” 

The bipartisan legislation was introduced by Senator Bob Corker, R-Tenn., and in addition to Isakson is cosponsored by Senators Heidi Heitkamp, D-N.D., Pat Toomey, R-Pa., Mark Warner, D-Va., Lamar Alexander, R-Tenn., Brian Schatz, D-Hawaii, Ron Johnson, R-Wis., Chris Van Hollen, D-Md., Mike Lee, R-Utah, Jeff Flake, R-Ariz., Jeanne Shaheen, D-N.H., and Ben Sasse, R-Neb.

Background:
On May 31, the Trump administration announced a determination that steel and aluminum imports from Canada, Mexico and the European Union pose a national security threat to the United States, and that tariffs would be imposed on these critical allies and trading partners. Isakson has repeatedly voiced opposition to these tariffs on steel and aluminum, arguing that import restrictions and retaliation would negatively affect a number of industries and their employees. 

In Georgia alone, manufacturing and trade industries account for $54.46 billion in economic output. Many of Georgia’s leading manufacturers depend on access to aluminum and steel products, and there is not sufficient domestic supply for these materials to meet the needs of Georgia manufacturers. Additionally, multiple global automakers and auto parts suppliers have located factories and other operations in Georgia in recent years, and the Port of Brunswick ranks number one in the country for automobile imports. Over the last decade, international trade in Georgia has grown by 53 percent, making Georgia eighth in the United States for trade. Additionally, Georgia farmers, apparel manufacturers, and other producers who depend on access to overseas markets will now face the threat of retaliatory tariffs or trade barriers from other countries.

In June, Isakson wrote to U.S. Secretary of Commerce Wilbur Ross and U.S. Secretary of Defense James Mattis highlighting the need to protect consumers and Georgia jobs by tailoring an ongoing investigation into aluminum trade practices so that it does not unfairly target products that are not a threat to national security. 

Related:
Isakson: Newly Proposed Tax on Steel, Aluminum Would Harm Economy
Isakson: Administration’s New Steel, Aluminum Tariffs Will Hurt Georgia
Isakson, Perdue Aim to Protect Consumers, Georgia Jobs 

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