Grassley: Trump’s new tariff threats are just ‘negotiating tool’ — for now

Sen. Chuck Grassley (R-Iowa) on Tuesday downplayed President-elect Donald Trump’s threats of broad tariffs against major U.S. trading partners as a “negotiating tool” — though he acknowledged he was concerned about the “potential” for another trade war.

Trump threatened a wave of blanket tariffs against Canada, Mexico and China Monday evening via a social media post, unless the countries stop the flow of drugs and immigrants into the U.S.

“I think you got to see it as a negotiating tool,” Grassley told reporters Tuesday morning.

Farm state Republican lawmakers like Grassley have been wary of how Trump’s threat for broad tariffs on the campaign trail could roil the U.S. agriculture sector again, just as American farmers are still recovering from Trump’s 2018 trade war against China.

Beijing slapped crippling retaliatory tariffs on U.S. farm products, which devastated farmers and rural communities, where Trump has strong electoral support. His administration used $28 billion in federal funding from the Agriculture Department to support farmers affected by his trade war.

Canada, Mexico and China are the U.S.'s largest agricultural trading partners.

“I'm concerned about the potential of it,” Grassley told reporters Tuesday morning, when asked if he was worried about another trade war on the horizon.

“But right now, I see everything that Trump's doing on tariffs as a negotiating tool,” he reiterated. “And we'll have to wait and see how successful he is about that.”

Grassley, who historically has been skeptical of tariffs, added that “we got enough wrong coming from other countries, taking advantage of the United States” that tariffs, or “other tools as well” could help. Though, he did acknowledge that China never purchased even half of the $200 billion in farm products it agreed to under Trump’s Phase One trade deal during his first term.

The Iowa Republican also painted the current issue as more of a trade imbalance, than Trump seeking to spur Mexico, China and Canada’s efforts to stem the flow of illegal drugs and immigrants into the U.S.

“You expect the United States government to fight for the interests of the United States and to stop other countries from subsidizing their products coming into the United States,” Grassley said. “That's a violation of the rules of trade, international rules of trade.”