Crapo blocks tariff bill days before Trump imposes tariffs on Canada, Mexico

3 months ago 370

  Published at 6:59 pm, March 5, 2025

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Melissa Davlin, Idaho Reports

Mike CrapoU.S. Sen. Mike Crapo, R-Idaho | Publicity image

WASHINGTON (Idaho Reports) — On Thursday, U.S. Sen. Mike Crapo, R-Idaho, blocked a bill that would have prevented the president from imposing tariffs without Congressional consent on countries that are allies of the United States, calling the proposal “too blunt of an instrument when nuance is called for.”

The move came just days before President Donald Trump imposed 25% tariffs on nearly all products imported from Canada and Mexico, the United States’ biggest trading partners, prompting the two countries to say they would impose their own retaliatory tariffs on American products.

The Senate bill, sponsored by Sen. Chris Coons, D-Del, would have required Congress to sign off before a president could impose tariffs on free trade partners or allies. Coons asked for unanimous consent to pass the bill during a Feb. 27 floor session, but Crapo, chairman of the Senate Finance Committee, blocked the request.

During his remarks on the Senate floor, Crapo said he agrees with Coons on several trade issues, including the need for the United States to negotiate more free trade agreements like the US Mexico Canada Trade Agreement, or USMCA.

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“I also agree that we should not undertake tariff actions lightly, on our allies or on free trade agreement partners,” Crapo continued. “We should, however, take care before we say that all options are completely off the table. In fact, all of our free trade agreements provide exceptions for when parties can remove economic benefits, including on national security grounds.”

Trump has repeatedly cited the flow of fentanyl into the United States as the reason for imposing tariffs on Canada and Mexico. While authorities seized more than 21,000 pounds of fentanyl at the southern border during the 2024 fiscal year, they discovered just 43 pounds of fentanyl at the Canadian border, seizing less than a pound some months, according to US Customs and Border Patrol. As of the end of January, authorities have seized only 10 pounds of fentanyl for the 2025 federal fiscal year, which runs from October through September.

Idaho Reports has reached out to Crapo’s office for comment.

Crapo’s cautious approach

This isn’t the first time in recent months Idaho’s senior US senator has mentioned tariffs.

According to Politico, Crapo took a “cautious stance” on tariffs during a December Senate Finance Committee hearing, saying he wanted to hear more about Trump’s plans before attacking them.

“I think that we all agree that tariffs are appropriate tools if used in the right way, and we all agree that there is a wrong use of tariffs, and we’ll get into that as we move through the next three or four years,” Crapo said.

During a February nomination hearing for the now-confirmed United States Trade Representative Jamieson Greer, Crapo mentioned the importance of having someone in the USTR position who could report to congress on international trade issues, especially when the president imposes tariffs.

“The executive orders (on tariffs) rely on the International Emergency Economic Powers Act, or IEEPA, and concern drug policy and border security. The President, not USTR, invokes IEEPA, and the Department of Homeland Security, not USTR, is responsible for securing our borders,” Crapo said during the hearing.

“What the President has done that is different, though, is bringing tariffs into the discussions about border security,” Crapo said. “USTR is … America’s chief trade negotiator. Any time the U.S. government is considering tariffs or something that implicates trade policy, (the trade representative) should be part of those conversations, and report to us about those conversations and solicit our input.”

Also in February, Crapo published a column outlining trade policy priorities, including negotiating trade agreements that are fair to the United States and help Idaho producers.

“The United States must resume negotiating real, comprehensive trade deals that expand market access for Idaho producers, protect Idaho interests competing abroad and thoughtfully reduce those tariffs that help our manufacturers, businesses and consumers,” Crapo wrote.

Past tariff problems for Idaho

In 2018, during the first Trump administration, Idaho producers lost millions due to retaliatory tariffs from Mexico: An estimated $15.4 million in potato exports under a 20% tariff, $14.4 million in cheese and whey due to the 25% tariff, and $1.1 million in export revenue from pork and ham due to an added 20% tariff, said Fabiola McClellan, then-head of Idaho’s Mexico City-based foreign trade office, in a Feb. 2019 press release. Mexico put those tariffs in place in response to the United States placing tariffs on steel and aluminum from Canada and Mexico.

The same press release said overall exports from Idaho to Mexico stayed steady in 2018.

“We are very relieved to see that the numbers have somehow remained even,” McClellan said at the time. “And a lot of that is due to hardworking Idaho companies. … We need to protect our market down there very carefully.”

The United States reached a deal with both Canada and Mexico in May 2019 to remove retaliatory tariffs.

Currently, Canada is Idaho’s top export partner, with exports to the country totaling almost $1.5 billion in 2023, the most recent year for which data is available. Food and agriculture products accounted for one fourth of that total, at $383 million, according to the Idaho Department of Commerce.

Idaho also imports a number of goods from Canada, including $360 million worth of food and agriculture products in 2023, and $272 million in wood, pulp and paper products.

In 2023, Idaho imported nearly $169 million worth of goods from Mexico, with food and agriculture accounting for about $68 million of that total, as well as $61.5 million of transportation equipment, according to the Department of Commerce.

Mexico is Idaho’s third-largest export partner, with exports to Mexico totaling $284 million in 2023. Food and agriculture accounted for 88% of Idaho’s exports to the country.

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