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Business groups support legislation introduced to slow Trump tariffs

The retail and business community on June 6 lauded bipartisan legislation introduced in the Senate that would require President Donald Trump to gain congressional approval before imposing tariffs on global trading partners.

The legislation comes as companies are caught in the crossfire of tit-for-tat steel and aluminum tariffs between the U.S. and Mexico, Canada and the European Union.

The legislation, co-sponsored by Tennessee Republican Bob Corker, chairman of the Senate Foreign Relations Committee, would require the president to submit to Congress tariff proposals under Section 232 of the Trade Expansion Act of 1962, which Trump used as the basis for his controversial tariffs on steel and aluminum imports imposed in March. The bill would apply to all tariff actions made under Section 232 going forward as well as all those taken during the past two years.

The tariffs, which Trump has justified on grounds of national security due to a reliance on imported steel and aluminum for military operations, have sparked fears of increased consumer prices, job losses and a disruption of longstanding supply chains due to pending and already-imposed retaliatory measures on American exports by trading partners.

Corker, who plans to retire at the end of his current term this fall and told CNN he had a tense call with Trump on June 6 regarding his pending legislation, said in a news release that Congress has the authority to approve trade measures such as tariffs.

“Making claims regarding national security to justify what is inherently an economic question, not only harms the very people we all want to help and impairs relations with our allies but also could invite our competitors to retaliate," Corker said. "If the president truly believes invoking Section 232 is necessary to protect the United States from a genuine threat, he should make the case to Congress and to the American people and do the hard work necessary to secure congressional approval.”

Trump imposed tariffs of 25% on steel and 10% on aluminum imports, moves that have already invited retaliatory measures from Canada, Mexico and the European Union after their exemptions were not made permanent at the start of June.

The Trump administration is also considering tariffs on imported automobiles and automobile parts under Section 232. The Commerce Department is currently investigating those imports to see if they pose a national security threat and qualify for similar tariff treatment.

Business groups came out in support of the legislation and restrictions on the president's authority.

“It’s time for Congress to exert its authority and play a leading role in mitigating escalating trade tensions with our strongest allies," David French, senior vice president for government relations for the National Retail Federation, said in a statement. "With the threat of a global trade war, Congress must step in before the U.S. economy suffers, American jobs are lost and families are forced to pay more for everyday products.”

The U.S. Chamber of Commerce also said that it fully supports the bill.

"The constitutional authority of the Congress is to 'regulate foreign trade' and its oversight of tariff policy is unambiguous," Chamber Executive Vice President and Chief Policy Officer Neil Bradley said in a statement. "This modest proposal to clarify congressional prerogatives is welcome and long overdue."

The bill is sponsored by Republican Sens. Pat Toomey of Pennsylvania; Lamar Alexander of Tennessee; Ron Johnson of Wisconsin; Mike Lee of Utah; and outspoken Trump critic Jeff Flake of Arizona, who also plans to retire at the end of his current term. Democrat Sens. Heidi Heitkamp of North Dakota, Brian Schatz of Hawaii and Chris Van Hollen of Maryland also sponsored the legislation.