Trumps Trade Agenda Could Benefit Friends and Punish Rivals
The sweeping tariffs that President-elect Donald J.Trump imposed in his first term on foreign metals, machinery, clothing and other products were intended to have maximum impact around the world.
They sought to shutter foreign factories, rework international supply chains and force companies to make big investments in the United States.But for many businesses, the most important consequences of the tariffs, enacted in 2018 and 2019, unfolded just a few blocks from the White House.In the face of pushback from companies reliant on foreign products, the Trump administration set up a process that allowed them to apply for special exemptions.The stakes were high: An exemption could relieve a company of tariffs as high as 25 percent, potentially giving it a big advantage over competitors.That ignited a swift and often successful lobbying effort, especially from Washington’s high-priced K Street law firms, which ended up applying for hundreds of thousands of tariff exemptions.
The Office of the United States Trade Representative, which handled exclusions for the China tariffs, fielded more than 50,000 requests, while the Commerce Department received nearly 500,000 exclusion requests for the tariffs on steel and aluminum.As Mr.Trump dangles new and potentially more expensive tariffs, many companies are already angling to obtain relief.
Lawyers and lobbyists in Washington say they are receiving an influx of requests from companies that want to hire their services, even before the full extent of the president-elect’s tariff plans becomes clear.In his first term, Mr.Trump imposed tariffs of as much as 25 percent on more than $300 billion in Chinese goods, and 10 percent to 25 percent on steel and aluminum from a variety of countries, including Canada, Mexico and Japan.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access.
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