Commerce Secretary Says Industrial Policy More Vital Than Tariffs
Commerce Secretary Gina Raimondo, speaking at a White House press conference April 7, argued that America's infrastructure needs are broader than roads, bridges and ports, and touted the president's proposal to invest $50 billion in semiconductor manufacturing and research, as well as spending to carry broadband to rural areas. She also argued that spending on elder care will prevent people from having to drop out of the workforce to care for relatives.
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Raimondo said President Joe Biden is open to compromise on how to pay for the investments, and over what time horizon -- his proposal would raise the corporate income tax to 28% from 21% and would be revenue neutral after 15 years. She asked the business community not to say that they are walking away from the plan because they don't like a 28% corporate income tax rate.
A reporter asked Raimondo about tariff policy, and she said, “My broad view is what we do on offense is more important than [what] we do on defense. To compete in the long run with China, we have to rebuild America in all the ways we’re talking about today. ... With respect to tariffs, there is a place for tariffs. The 232 tariffs on steel and aluminum have in fact helped save American jobs in steel and aluminum industries,” she said.
The Section 301 tariffs are under the Office of the U.S. Trade Representative, not Commerce, but she defended the use of tariffs to protect U.S. manufacturers from Chinese trade-distorting practices.
“The fact is China’s actions are uncompetitive, coercive, underhanded -- they’ve proven they’ll do whatever it takes,” she said. “I plan to use all the tools in my toolbox as aggressively as possible to protect American workers and businesses from unfair Chinese practices.”