A MARTÍNEZ, HOST:
President Trump has brought back 25% tariffs on all steel and aluminum imports. His decision on Monday also set new standards for steel and aluminum in North America to prevent countries such as China and Russia from dodging tariffs by first sending their steel to Mexico and Canada, where it might be relabeled before being brought into the United States. So what's the impact of this on a place known for manufacturing?
We've called up Democratic representative Debbie Dingell of Michigan - a state virtually synonymous with the auto industry. Dingell serves on the House Energy and Commerce Committee. So, congresswoman, what's your impression of the president's latest tariff move?
DEBBIE DINGELL: Well, good morning. Here is the issue that I have - I do believe, unlike many, I understand the importance of tariffs. And tariffs are a tool in the toolbox to level the playing field. We need, especially in the manufacturing sector - autos and steel - we need to make policies that are going to level that playing field, making sure that we're able to compete in the global marketplace. The problem with the way that this was done, again, is it's across the board on two countries. One is really more of a friend than people realize. The auto industry is intricately linked in the supply chain with autos. There's no time to consider it.
MARTÍNEZ: Which one is the friend that we don't seem to realize?
DINGELL: I think it's time that we start treating Canada and Mexico differently. The North America Free Trade Agreement called NAFTA - which many may have heard of but don't know about - I believe is one of the worst trade negotiations ever negotiated. But China is now still bringing steel into Mexico. It enters the U.S. market via Mexico. China, by the way, is trying to build auto plants in Mexico and then market their vehicles in North America as North American vehicles. We have to renegotiate USMCA as soon as we can. But Canada has really - it has former labor standards, environmental standards, quality standards, and it is intricately linked with the industries in both places.
MARTÍNEZ: I've heard you admit, congresswoman, that U.S. trade policy needs to be strengthened. So when President Trump explains tariffs, as he did this past weekend on Air Force One...
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PRESIDENT DONALD TRUMP: Very simply, it's if they charge us, we charge them.
MARTÍNEZ: So if they charge us, we charge them. Why isn't that a good, simple way to do it?
DINGELL: Because it's more complicated. I wish that it was that simple. But across-the-board tariffs without time for companies to adjust and understand what the unintended consequences are - it's going to end up hurting the American worker. It's going to disrupt supply chains. This could terribly - right now - disrupt supply chains, and it's going to raise the costs for consumers. But a well-thought-out trade strategy, doing it ahead of time - we need a steel industry in this country. It's a national security issue not just an economic security issue.
MARTÍNEZ: How long do you think before your constituents, say, notice these changes - notice when it starts to hurt them?
DINGELL: So again, this is complicated. You will remember that in 216, I said that Hillary Clinton was going to lose, and everybody thought I was crazy. I believe Donald Trump won the presidency in 216 because Democrats did a terrible job at trade policy. You want to go into my U.S. steel plant that's going to close. Those workers are demoralized. They want to see us do something, but they don't want to see us hurt the industry. They want to know somebody's fighting for their job.
But you also have to realize that we're competing in a global marketplace. Some of this new administration doesn't like EVs. The global marketplace wants EVs, and we can't have a strong domestic auto industry if we're not building what the global market wants as well.
MARTÍNEZ: Now, the Trump administration says this move will benefit steel and aluminum producers in the U.S. In the long run, do you think these benefits will eventually outweigh the immediate impact? So in other words, congresswoman, short-term pain for long-term benefit.
DINGELL: I think the way that they're being done so quickly and not giving people - not taking a little more measured approach could hurt. I think if they were to take a measured approach, it will reinforce and strengthen our manufacturing sector.
MARTÍNEZ: In what way?
DINGELL: It'll give us a strong steel industry here, but you just can't do it overnight. You have no idea how many times a part will come across the border - four or five times in the supplier industry - for different things to be done. We're building a bridge in Detroit, and they were very concerned because they bring supplies for that bridge, which is going to open in a few months, back and forth every day. How do you handle that?
MARTÍNEZ: Is there anything you can do to push back on this, or is this something that you're just going to have to deal with because Trump administration's in power right now?
DINGELL: I have said and made it clear that I will work with President Trump on trade policies because I think it's very important, and I think it's not only an economic security issue. We need to bring our supply chains back to this country. And while you and I are talking autos and steel, we need to bring our pharmaceutical production back to this country. Eighty to 90% of it is made offshore. That's a national security issue, too.
MARTÍNEZ: That's Democratic Congresswoman Debbie Dingell of Michigan. Representative, thank you.
DINGELL: Thank you. Transcript provided by NPR, Copyright NPR.
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