Under the Dome: Tariffs divide North Carolina's delegation in Congress. And silence some.
Happy Monday! Welcome to Under the Dome. It's Danielle Battaglia.
Last week, President Donald Trump fulfilled his campaign promise for reciprocal tariffs across the world. As a base, Trump placed 10% tariffs on all trade partners, with higher tariffs targeting countries like China, Vietnam and the members of the European Union.
Economists warned that this would set off a trade war. Already China and Canada have retaliated with higher tariffs of their own. And the stock market plunged.
The tariffs are expected to cost Americans anywhere from $2,700 to $3,400 yearly, according to a Yale Budget Lab study.
But Trump said it will all pay off within two years, when he expects to be rewarded with a manufacturing boom in the United States.
The White House was out quick, the morning after Trump's tariff announcement, with a list of statements from various lawmakers supporting Trump. Reps. Chuck Edwards, Pat Harrigan, Tim Moore and Addison McDowell made it into the news release.
'Many countries are taking advantage of the United States by imposing tariffs against us while we don't have reciprocal tariffs against them,' Edwards' statement, taken from social media, said in the news release. '(Trump) has used tariffs to produce successful trade deals for us in his first term, and I support his plan to use them again to create a more level playing field and secure fairer trade deals for America. The quicker other countries agree to fairer trade deals, the quicker the tariffs can end.'
Rep. Mark Harris, a Republican from Charlotte, has also been supportive.
Sen. Ted Budd and Reps. Richard Hudson, Virginia Foxx, David Rouzer, Greg Murphy and Brad Knott have been silent on the issue. House Speaker Mike Johnson sent members home before Trump's announcement — for unrelated reasons — leaving his members free from running into reporters roaming the halls of the Capitol.
Budd, a Republican from Davie County, is a staunch Trump supporter, but also comes from a family who turned a small and failing janitorial company into a successful, multi-state business with over 5,000 employees.
Hudson, a Republican from Southern Pines, leads the National Republican Congressional Committee, which is trying to hold onto the GOP majority in the House.
And Foxx, a Republican from Banner Elk, holds many stocks, including several of the ones that fell last week.
Sen. Thom Tillis, a Republican from Huntersville, has given conflicting views on the tariffs.
He warned about how they could bankrupt farmers, while voting against legislation to revoke tariffs on Canada.
He said he plans to support a bill that gives back control to Congress over tariffs, but told Punchbowl News that 'it's less about reducing Trump's power and more about clawing back Article I authority that's been eroded over a number of decades.'
North Carolina Democrats were not supportive.
'Yesterday was not 'Liberation Day,' it was Recession Day,' Rep. Valerie Foushee, of Chapel Hill, wrote on social media. 'Trump's reckless actions are raising costs for families, increasing inflation, and devastating the stock market. Democrats will keep fighting to reverse these tariffs and deliver an economy that works for all Americans, not just for the rich.'
Rep. Deborah Ross, of Raleigh, also spoke out against the tariffs, saying they will 'drive up costs, make inflation worse, stifle the growth of jobs and businesses in North Carolina and threaten a recession.'
'Trump has proven time and time again that he only cares about profits for the wealthiest Americans,' Ross said. 'While he escalates a costly trade war that is causing chaos in our markets, it is ultimately working families who will pay the price with higher taxes on everyday items, including groceries, gas, electronics, cars and homes.'
She added the North Carolina agriculture and manufacturing industries will feel significant pain from the tariffs.
Our Renee Umstead wrote more about how the tariffs are affecting North Carolina's small businesses.
But to leave you all on a high note, a jobs report came out Friday saying 228,000 jobs were added to the U.S. economy in March, which was much stronger than expected.
Tired of hearing about tariffs? Here are other stories from the week:
North Carolina Superintendent of Public Instruction Mo Green said the immediate impact is uncertain after Trump's executive order to close the U.S. Department of Education and give control back to the states. The Charlotte Observer's Rebecca Noel did a Q&A with Green.
More on Green: Keung Hui covered the Trump administration's decision to claw back COVID-19 relief funding from schools. Green says it will cost Halifax, Lenoir, Richmond and Robeson counties $17 million. The state school board is urging officials to reverse this decision.
On Thursday, the United States began tariffs on foreign vehicles. Brian Gordon and Renee Umstead write about why this could add $5,000 to $15,000 to the ticket price of new vehicles. Some Triangle auto dealerships saw an influx in customers ahead of the tariffs going into effect.
On Thursday, The Charlotte Observer and The News & Observer will hold a joint virtual roundtable called: 'A Long Way to Go: Conversations on North Carolina's Helene Recovery.' Nora O'Neill and Richard Stradling will moderate a panel discussion on transportation and housing issues still facing victims of Helene. RSVP here.
Korie Dean writes about two students attending N.C. State whose student visas were revoked by the Trump administration without warning. Both students chose to self-deport and are being allowed to continue their studies online. Secretary of State Marco Rubio announced more than a week ago that he had signed letters to revoke student visas for more than 300 students.
That's it for now. Be kind to each other. And check back tomorrow for the Under the Dome podcast newsletter.
And if you have any feedback or tips for this new edition of the newsletter feel free to reach out to me directly at dbattaglia@mcclatchydc.com.
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