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Ivey says Trump Administration import tariffs would harm Alabama economy

Brandon Moseley

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(ADAM BRASHER/THE AUBURN PLAINSMAN)

Monday, Alabama Governor Kay Ivey (R) warned the Trump Administration that import tariffs could harm the Alabama economy.

“Import tariffs and any retaliatory tariffs on American made goods, will harm Alabama.” Ivey said in a statement critical of proposed new tariffs on foreign imports by the Trump Administration.

Donald J. Trump (R) was elected President of the United States vowing to fight what he called one sided trade deals.

“Alabama has a rich history as a leader in manufacturing, a legacy which continues in large part, through our five automotive original equipment manufacturers and our over 200 supporting suppliers that have helped establish “Made in Alabama” as an internationally-respected brand,” Ivey said. “Last year proved to be a banner year for auto industry growth in Alabama, with nearly $3 billion in automotive-related investments. Before the recent announcement of a new Mazda-Toyota plant, and other automotive-related growth, more than 57,000 Alabamians were already employed by our auto manufacturing sector, a number which is expected to increase. However, this growth could be stymied if tariffs are imposed on the goods we export around the world.”

“In 2017, Alabama reached a record high of $21.7 billion in exports, with our auto industry accounting for $10.9 billion of those exports,” Ivey continued. “The largest importers of Alabama made goods and services were Canada, China, Germany, Mexico and Japan – all countries which may be forced to reciprocate in response to any new import tariffs.”

“Import tariffs, and any retaliatory tariffs on American made goods, will harm Alabama, the companies that have invested billions of dollars in our state, and the thousands of households which are dependent upon those companies for a good-paying job,” Ivey wrote in her statement. “I strongly oppose any efforts that may harm those companies that employ thousands of Alabamians and contribute billions to our economy. I am committed to protecting Alabama jobs and consumers, the world over, who are proud to purchase products made in Alabama.”

Gov. Ivey was at the White House on Monday for a meeting of the National Space Council. President Donald J. Trump (R) addressed the group and announced the creation of his new Space Force.

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Trump said on the Whitehouse web site: “From now on, we expect trading relationships to be fair and to be reciprocal.”

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President Trump has imposed a number of tariffs on countries that the administration says do not have a fair trade relationship with the United States.  These nations include historic allies like France, Canada, and Mexico.  They also include China which the administration is threatening with strong trade penalties by the end of June.

The Trump Administration recently announced that the United States will implement specific investment restrictions and enhanced export controls for Chinese persons and entities related to the acquisition of industrially significant technology. The list of restrictions and controls will be announced by June 30, 2018.

The Administration wrote that: “China has consistently taken advantage of the American economy with practices that undermine fair and reciprocal trade. For many years, China has pursued industrial policies and unfair trade practices—including dumping, discriminatory non-tariff barriers, forced technology transfer, over capacity, and industrial subsidies—that champion Chinese firms and make it impossible for many United States firms to compete on a level playing field.”

“China’s industrial policies, such as its “Made in China 2025” plan, harm companies in the United States and around the world,” the Administration stated. “China imposes much higher tariffs on United States exports than the United States imposes on China. China’s average tariff rate is nearly three times higher than the average United States rate. Certain products are even more imbalanced, for instance the United States charges a 2.5 percent tariff on Chinese cars, while China currently maintains a 25 percent tariff on cars from the United States.”

“China has banned imports of United States agricultural products such as poultry, cutting off America’s ranchers and farmers from a major market for their goods.” the Trump Administration continued. “China has dumped and unfairly subsidized a range of goods for the United States market, undermining America’s domestic industry. In 2018 alone, the Trump Administration has found dumping or unfair subsidies on 13 different products, including steel wheels, cold-drawn mechanical tubing, tool chests and cabinets, forged steel fittings, aluminum foil, rubber bands, cast iron soil pipe and fittings, and large diameter welded pipe.

In January 2018, the Trump Administration ruled that China’s overproduction of steel and aluminum.
The head of the President’s Council of Economic Advisors, Lawrence Kudlow recently wrote an op-ed in the Washington Post and released on the Whitehouse website.

“Our friends and foes alike should recognize that President Trump has been remarkably faithful in keeping his campaign promises,” Kudlow stated. “From massive tax cuts to historic regulatory reduction to forcefully challenging one-sided international agreements, he has done exactly what he said he would do. There’s a simple lesson in President Trump’s record of achievement: Believe him.”

“Nowhere is this lesson clearer than when it comes to President Trump’s passion as a trade reformer,” Kudlow continued. “President Trump supports a vision of free trade that is fair and reciprocal. As a pro-growth reformer, the president understands that fair and reciprocal trade can knock down barriers, open up export markets and increase investment, which is the path to lasting economic growth. But this vision has been thwarted in recent decades by a lack of reciprocity, along with unfair and often illegal trading practices, including massive intellectual property theft. Country after country has been putting our global trading system at risk by raising tariffs and non-tariff barriers, protecting sectors from automobiles to agriculture. So do not blame President Trump for taking decisive actions that protect our American workers.”

“Past U.S. administrations — both Republican and Democrat — have paid only lip service to dealing with this breakdown,” Kudlow stated. “Not President Trump. He has shown courage and decisiveness to prevent harm to the American economy and its workforce.”

Some economists have expressed fears that Trump’s proposed tariffs could lead to retaliation and a trade war that could result in a global economic down turn.

The unemployment rate in Alabama is just 3.9 percent.

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