Heitkamp Presses Fed Chair Powell on Economic Impact of Trade War

Press Release

U.S. Senator Heidi Heitkamp today pushed Jerome Powell, Chairman of the Federal Reserve, on the impact of the administration's trade war on the U.S. economy.

Heitkamp, a member of the Senate Banking Committee, pointed to comments from former Fed Chair Ben Bernanke citing studies that show protectionist trade policies like tariffs "lead to lower productivity for U.S. firms and lower living standards for U.S. consumers."

Heitkamp pushed Powell on whether he has any reason to believe those conclusions are no longer valid, and he confirmed that he did not. Powell agreed that imposing tariffs over a sustained period time is the wrong thing to do for the economy.

Click here for video of the exchange.

"If you look at the history of economic policy and what's going on today, the evidence is clear that imposing trade barriers makes us less productive and less prosperous as a nation. We can't put our heads in the sand and ignore the facts," Heitkamp said. "North Dakota farmers, ranchers, and manufactures are feeling the harsh impacts of this administration's trade war, so it's important that the Fed Chair today acknowledged that tariffs can be harmful to our overall economy. For North Dakota farmers and ranchers, there's no such thing as "short term pain for long term gain' -- the more pain they endure now, the harder it will be to regain market share and recover from low commodity prices in the future. Rural America will not stand to be collateral damage in a misguided trade war -- we need to guide the administration's trade policies back from the brink and be smarter about opening markets for our agriculture, manufacturing, and energy sectors."

In recent weeks, Heitkamp has traveled the state and heard concerns about trade in Kindred, Grand Forks, Richardton, Dickinson, Mandan, Minot, Carrington, Wahpeton, and Langdon.

Yesterday, Heitkamp launched a new survey to gain feedback from North Dakotans about the impact of the administration's escalating trade war. She will use the responses and stories to help inform how she can best push back on the administration's actions on trade, and seek solutions that will help maintain markets for North Dakota's farmers, ranchers, and manufacturers.

The U.S. Chamber of Commerce recently released a report this week showing how the ongoing, escalating trade war threatens over $60 million in North Dakota exports. The report estimates that over 111,000 jobs in North Dakota are supported by trade.

The National Farmers Union estimates that corn, soybean and wheat farmers across the U.S. have already lost $13 billion due to market disruptions caused by the administration's trade war.

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.
Gaining input from North Dakotans. Heitkamp has regularly met with folks from North Dakota impacted by trade, including recent meetings in Washington with North Dakota growers of soybeans, corn, barley, and other commodities, as well as manufacturers and small business owners. She has held a series of meetings across the state to gain input from North Dakotans in agriculture, energy, and manufacturing.
Outlining her agenda to strengthen and protect North Dakota's economy. 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 the manufacturing industry. 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. Heitkamp recently brought a group of North Dakota agriculture leaders to the Mexican Embassy in Washington to talk about the importance of NAFTA and reinforce their commitment to a strong relationship with their customers in Mexico.
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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