7/19/2018

BUSINESS/TARIFFS/TRUMP AS PRESIDENT/UNION: “Richard Smallwood describes himself as a ‘pretty far right-wing conservative’ and a longtime supporter of President Trump. But like many in the auto industry, Mr. Smallwood, the president of the tire company Sumitomo Rubber North America, has been puzzled and dismayed by the president’s proposal to slap tariffs on foreign automobiles and their parts…On Thursday [7-19-18], Mr. Smallwood appeared at a government hearing on the sweeping tariffs the administration is now considering, along with other suppliers, and representatives from car companies and foreign countries. Unlike the previous hearing on the administration’s metals tariffs, which drew some support, the testimony of those who appeared on Thursday was almost uniformly negative and punctuated with concerns about how tariffs would raise their costs, stifle innovation and dampen their plans for expansion and hiring…Whether Mr. Trump listens will be a big test of whether his protectionist instincts will prevail over the concerns of an industry he has continually vowed to protect. Labor unions have been more supportive of the Trump administration’s efforts, though they have warned about the potential harm of disrupting global supply chains and urged Mr. Trump to proceed carefully.”

Ana Swanson, “On Trump’s Car Tariffs, Companies Are United in Dissent,” The New York Times online, July 19, 2018