By Peter Nicholas
WASHINGTON -- President Trump said that his steel tariffs on
China and other countries are rescuing an iconic U.S. industry that
was in danger of closing and predicted that the competition U.S.
companies will face in the future will mostly be domestic due to
his actions.
In an impromptu, 20-minute Oval Office interview Wednesday, Mr.
Trump said some people may complain that in the short term steel
prices may be "a little more expensive," but that they ultimately
will drop and his moves will have preserved an industry important
to national security.
Competition will be "internal, like it used to be in the old
days when we actually had steel, and U.S. Steel was our greatest
company," he said.
Mr. Trump's remarks came on the same day the White House
announced he was revoking the security clearance of one of his most
vocal critics, former Central Intelligence Agency Director John
Brennan. The White House is also trying to contain any damage from
publicity surrounding the release of a tell-all book by Omarosa
Manigault Newman, a former senior White House official who was
fired in December.
In upbeat tones, the Republican president talked about the
strong domestic economy and his own political power as he said was
demonstrated in GOP primaries throughout the country. He reiterated
that he would like to see the investigation into alleged Russian
interference in the 2016 presidential race end, but said he is
considering giving an interview to the investigator, special
counsel Robert Mueller.
"We're looking at it," he said.
Mr. Trump pledged in March to impose global tariffs of 25% on
imported steel, and 10% on aluminum, moves he said were based on
national security concerns.
The announcement sparked worries of a looming global trade war
and prompted retaliation or threats of it across Asia, Europe and
elsewhere in North America, elevating tensions between the U.S. and
many if its longtime allies.
China, which has come to dominate the global steel market, has
responded to the steel tariffs and other trade measures with its
own retaliatory trade measures against the U.S.
In what he called a sign that the tariffs are working, Mr. Trump
said steel companies are opening new U.S. plants and "our steel
industry is one of the talks of the world. It's booming."
Many economists, business leaders, and members of Mr. Trump's
own party would take issue with his boasts, arguing that he is both
exaggerating the benefits of the policies while understating their
significant direct and indirect costs.
While some steelmakers have expanded U.S. production in the wake
of the tariffs, other U.S. manufacturers remain heavily dependent
on imported metals. Moreover, even the administration's own
estimates of the tariffs' impact project a reduction in imports,
not their elimination, still leaving significant foreign
competition for U.S. makers.
Foreign steel companies make large numbers of specialty products
that American ones don't produce, and, experts say, are unlikely to
jump into those segments, even with new protections.
Steel users around the country have blamed the tariffs for
higher costs, crimped profits and, in some cases, layoffs and
production cuts. A Missouri nail company received widespread
attention for claiming that higher input costs from the tariffs led
to a 70% drop in orders and a 25% cut in its workforce.
Critics also point to the bigger losses that have resulted from
retaliatory tariffs by trading partners. Harley-Davidson Inc. has
drawn Mr. Trump's ire by complaining publicly about the
double-whammy it has suffered. European tariffs on certain American
exports have prompted the motorcycle maker to shift production
outside the U.S., while it said higher steel and aluminum costs
would boost its cost of U.S. assembly by $55 million this year.
On the midterms, the president said his endorsements are making
a crucial difference, vaulting GOP candidates to victory in races
they were on track to lose had he stayed out.
He expects a strong Republican showing in November, maintaining
that the comparatively high percentage of voters who believe the
country is on the right track will prevent the sort of sweeping
opposition-party victories in past midterms.
Several times Mr. Trump interrupted the conversation to summon
aides to the Oval Office to share charts showing his endorsement
record and to discuss the size of his following on social
media.
"So what's my record?" he asked political director Bill Stepien,
who said the president had yet to lose a candidate he has backed in
Republican primary races.
Mr. Trump said he notched eight wins out of nine in special
elections.
In a special election in Alabama last fall, Mr. Trump endorsed
then-incumbent Sen. Luther Strange, who lost to Roy Moore in the
Republican primary. Moore went on to lose the general election to
Democrat Doug Jones.
Incumbent presidents typically suffer steep losses in their
first midterm elections, but Mr. Trump said he expects the party to
do "great."
"As long as I can get out and campaign, I think they're going to
win, I really do," he said. "It's a lot of work for me. I have to
make 50 stops, it's a lot. So, there aren't a lot of people that
can do that, physically. Fortunately, I have no problem with
that."
He and Mr. Stepien said they were buoyed by a Real Clear
Politics average of polling that shows more than 40% of Americans
believe the country is moving in the right direction.
Asked if his campaign appearances might also mobilize Democratic
voters, Mr. Trump said, "It may -- but it energizes my people much
more than it energizes them."
"I think the Democrats give up when I turn out," he said. "If
you want to know the truth, I don't think it energizes them. I
think it de-energizes them. I think they give up when I turn
out."
Asked about the White House decision to yank Mr. Brennan's
security clearance and to evaluate the clearances held by others,
Mr. Trump said was prepared to do it last week, but it was too
"hectic."
Mr. Trump, who was criticized for targeting for security
clearance only people who served in Democratic administrations,
said he "would put a Republican on, too, if I thought they were
incompetent or crazy."
Apart from Mr. Brennan, the president drew attention to former
FBI agent Peter Strzok, who had served on the Mueller investigation
and was found to have sent anti-Trump messages to his mistress; and
also FBI Deputy Director Andrew McCabe, whom Attorney General Jeff
Sessions fired in March, alleging he made an unauthorized
disclosure to the news media and "lacked candor" in speaking to an
internal watchdog -- allegations Mr. McCabe has strongly
disputed.
Mr. Brennan in a tweet called the move "part of a broader effort
by Mr. Trump to suppress freedom of speech & punish critics"
and said it "should gravely worry all Americans, including
intelligence professionals, about the cost of speaking out."
Mr. Trump said the Russia probe is unwarranted. "Of course they
say it's not an investigation. You know, in theory I'm not under
investigation...I'm not a target. But regardless, I think that
whole -- I call it the rigged witch hunt, is a sham."
Mr. Trump didn't rule out testifying before Mr. Mueller, but he
said the special counsel's investigation has been "so badly
discredited."
The Mueller investigation last month indicted a dozen Russian
intelligence officers and charged them with hacking the computers
of Democratic organizations and ensuring the pilfered information
became public.
--Jacob M. Schlesinger and Rebecca Ballhaus contributed to this
article.
Write to Peter Nicholas at peter.nicholas@wsj.com
(END) Dow Jones Newswires
August 15, 2018 20:19 ET (00:19 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.