Heitkamp: Escalating Trade War with EU Threatens ND Manufacturers

Press Release

U.S. Senator Heidi Heitkamp released the following statement after the European Union (EU) responded to the administration's escalation of its trade war by imposing retaliatory tariffs on $3.4 billion in U.S. goods -- including agriculture machinery, which accounts for 50 percent of North Dakota's exports to the EU.

"Starting a trade war with our closest allies is like playing with fire, and it's North Dakota manufacturers who stand to get burned," Heitkamp said. "Manufacturers of agricultural and construction equipment are an important part of North Dakota's economy, and they've already seen their input costs spike because of the administration's trade war with our closest trading partners like the EU, Canada, and Mexico. Now that the EU has predictably responded, our manufacturers could start to feel even more pain as American-made equipment gets more expensive for foreign buyers and loses its competitive edge. This isn't a good negotiating tactic -- it's giving up hard-earned market share for North Dakota companies. The hardworking employees of our manufactures deserve smarter trade policies that open new markets to sell their goods -- not tearing down the trade relationships that keep our rural economy strong."

North Dakota manufacturers are already feeling the negative consequences of the trade war. Prices for raw materials have gone up, and uncertainty has clouded their business prospects.

The tariffs on American goods imposed by the EU come after the administration imposed tariffs on EU steel and aluminum, saying they were necessary for national security reasons. Heitkamp recently joined U.S. Senator Bob Corker (R-TN) leading a bipartisan group of eight other senators in introducing legislation to require congressional approval of tariffs designated for national security reasons. Heitkamp also cosponsored bipartisan legislation introduced by Republican U.S. Senator Jeff Flake from Arizona to nullify the aluminum and steel tariffs.

Background:

Heitkamp has continued to press for smart trade policies that support North Dakota's farmers, ranchers, and manufacturers by:

Pressing top officials since the beginning of this administration to protect and expand markets for North Dakota goods. Heitkamp has met with the U.S. Agriculture Secretary (USDA), U.S. Trade Representative (USTR), U.S Commerce Secretary, the Canadian ambassador to the U.S., and many other top U.S. administration officials -- many of them several times -- to explain that the U.S. needs smart trade policies to allow our farmers, ranchers, and manufacturers to reach new markets -- not tariffs, uncertainty with NAFTA, or hostility toward our top trading partners. In February 2017, when she first met with USDA Secretary Sonny Perdue, when he was a nominee for the position, the bulk of their conversation focused on trade.

Supporting bipartisan legislation to stop the tariffs. Heitkamp recently joined U.S. Senator Bob Corker (R-TN) leading a bipartisan group of eight other senators in introducing legislation to require congressional approval of tariffs designated for national security reasons. Heitkamp also cosponsored bipartisan legislation introduced by Republican U.S. Senator Jeff Flake from Arizona to nullify the aluminum and steel tariffs.

Outlining her agenda to strengthen and protect North Dakota's agriculture and energy industries. During a meeting with USTR Robert Lighthizer earlier this year, Heitkamp laid out her top four priorities to support North Dakota workers, farmers, and businesses by enabling them to export their products abroad, and recently spoke out against the administration's escalating trade war with China, which also threatens North Dakota's main industries -- energy, agriculture, and manufacturing.

Raising concerns about impacts of retaliatory tariffs on industries vital to North Dakota's economy like agriculture and manufacturing. Heitkamp recently toured WCCO Belting, Inc. in Wahpeton and heard firsthand the concerns the North Dakota manufacturer has about trade wars and its ability to export its goods. Over half of WCCO's sales are to international customers, making trade an essential part of its business model.

Speaking out against tariffs and uncertainty regarding NAFTA that would put the state's economy at risk. Heitkamp has met with farmers, ranchers, and manufacturers across North Dakota to talk about the need for smart trade policies that support North Dakota. She penned op-eds in March 2017 and again in April 2018 making the case. In February, she also did an episode on her podcast, The Hotdish, about NAFTA and the importance of trade for agriculture. For the episode, she interviewed the former U.S. agricultural trade negotiator and a North Dakota barley farmer.

Pressing for analysis about the impact of the administration's trade policies on small businesses. Heitkamp recently called on the U.S. Small Business Administration's (SBA) Office of Advocacy to analyze the impact of the administration's tariff policies on American small businesses. Small businesses represent nearly 99 percent of all businesses in North Dakota, and support nearly 60 percent of all jobs in the state, according to SBA.

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