Warren against tariff "loopholes" for big biz
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One economic unknown is whether President-elect Trump's tariffs will cover all imported goods, as previously threatened.
- But Sen. Elizabeth Warren (D-Mass.) wants to know the opposite: which companies will get exemptions and how that will be determined, Axios has learned.
Why it matters: Warren's demand is a preview of the tariff battle ahead. Questions are broadening from what shape Trump's trade agenda will take, to how such plans will ultimately be carried out — and what it all means for the economy.
Details: In a letter sent to Howard Lutnick and Jamieson Greer — Trump's picks for Commerce secretary and U.S. trade representative, respectively — Warren asks how the agencies charged with implementing the president-elect's trade agenda will avoid a repeat of 2018.
- Then, companies could make a case to administration officials for why their products should be excluded from a long list of goods set to be slapped with tariffs.
- But this exclusion process was opaque, with little clarity about why certain companies were granted exemptions and others were not.
What they're saying: "While President Trump talked tough on tariffs in his first term, his trade officials handed out exemptions in arbitrary, unfair, and opaque backroom deals," Warren writes in the letter, co-signed by Sen. Tina Smith (D-Minn.) and obtained by Axios.
- The lawmakers add that Trump has not made clear whether there is a "strategic plan in place to secure wins for American workers and businesses, and to stop evasion by big multinational corporations."
The intrigue: A less restrictive exclusionary process would, in theory, blunt some of the inflation economists warn will come with aggressive tariff plans.
- Warren, who acknowledges that tariffs are a "critical tool for promoting U.S. manufacturing," is advocating for a buttoned-up process that does not benefit large businesses.
- "Corporations are making crystal clear that they are ready to wheel and deal their way to tariff exclusions again," the letter says.
Yes, but: It's not clear that Trump will follow the same process to implement tariffs as his first White House stint. He could seek a speedier route that skips the period in which corporations could battle for carve-outs.
What to watch: Senate confirmation hearings for Lutnick and Greer are expected in the days ahead, though no dates have been confirmed. Warren's letter asks for response by next week, after Trump officially takes office.
- Expect questions about Trump's trade plans later today. Scott Bessent, nominated for Treasury secretary, will testify before the Senate Finance Committee.
