(WXYZ) — The escalating tension over President Donald Trump’s tariffs has even some of his supporters warning of an economic winter. Now, Congress is ready to step in.
Trump’s tariffs are impacting markets, set to drive up costs, and stoking recession fears.
“I just had a senior just collapse in my arms this weekend, crying about what she was going to do and what she was going to live on between what had happened to her retirement savings and what was going to happen with Social Security,” Rep. Debbie Dingell said.
Dingell says legislators in Washington are ready to intervene in the president’s trade war. She’s working on bipartisan bills.
“Do we need to see our jobs brought back to the United States? Was NAFTA a terrible, bad auto policy? Yes, it was. Which is why it was renegotiated, and we need to renegotiate the US-Mexican Canada trade agreement, but what we’re seeing is causing chaos, havoc, destroying people’s savings, and creating a lot of fear and anxiety,” Dingell said.
The White House says the goal of the president’s tariffs is to strengthen America’s economic position on the world stage and protect American workers.
“These are human beings we’re talking about, there is a way that we can execute the America First agenda and bring that long-term trade back,” Rep. John James said.
James, a Republican, says he’s acutely aware of the impact the tariffs are having, especially on the auto industry, and he’s working on a fix.
“What I’m doing in Congress, I’m working across the aisle to come up with ways that we can make three things happen: we can help support our automotive industry; we can help deliver an America First agenda: and we can also make sure we get something passed congress that cuts cost and reduces fraud,” James said.
Magna International spokesperson Dennis Niemiec provided a statement saying:
We are continuing to focus on what we can control, while working with our customers, partners, trade associations, and government stakeholders to find solutions that maintain industry stability and minimize supply chain disruptions. Our priority remains maintaining a stable work environment and ensuring our voice is heard in these critical discussions.
The tariffs may also impact innovators. Niles Heron, Senior Director of tech-based entrepreneurship at Tech Town, says their start-ups that use batteries or prefabricated engines from other countries are watching the trade war closely.
"When you look at established businesses, your major automotive suppliers – tier one or tier two, they’re going to pass the cost on largely to either consumers or to the buyer of the part they're making. Start-ups don’t have the opportunity to do that. A lot of them are pre-revenue, they’re developing prototypes; they’re building early units for test and market entry. There’s nowhere to pass that cost onto, it’s just going to be more expensive for them to innovate,” Heron said.
