Tariffs offer an opportunity for Oregon Democrats to do the right thing on the economy for a change

Instead of firing off endless press releases opposing the president, Democrats should join with Republicans to protect Oregonians from economic fallout

The Port of Portland (photo courtesy Port of Portland)

Oregon’s Democratic leaders talk a lot about protecting Oregon from President Trump, often for the purpose of distracting from their own myriad failures. Even if you agree that Oregon needs to be protected (and in many cases there’s little to worry about), we should acknowledge that words alone don’t accomplish much.

Promising to protect Oregon from a national abortion ban that has no viable path through Congress is virtue-signaling, not governance. Railing against Trump Administration education plans when Oregon has some of the worst post-COVID test scores in the nation is misdirection that seeks to distract from failures of Oregon’s school system - especially considering that most of the states with big improvements in educational achievement are governed by Republicans.

But there is one issue where Oregon leaders can do something constructive to protect against an actual risk to Oregon presented by Trump policies: tariffs. As they have in response to almost every other decision by the President, Gov. Tina Kotek and other Oregon Democrats have voiced their opinion about tariffs (they say they’re bad) through social media and other channels. But that’s just empty showmanship. This particular policy change offers a chance to actually do something that will help.

Regardless of what you think about Trump’s overall tariff policies, it’s likely that some Oregonians will be negatively affected.

Only four states have more exports as a percentage of gross state product than Oregon does. Those exports, mostly to Mexico, Canada and Asian countries, are likely to shrink as trade partners levy their own tariffs in response to those assessed by the United States. Excluding health care, the state’s most significant private employers (Nike, Columbia Sportswear, Intel and other electronics and sports apparel companies) are heavily reliant on trade both for goods and parts needed to manufacture products and for access to markets to sell those products. Nike and Intel, in particular, already are struggling to keep up with competition.

Oregon farmers also are trade dependent, shipping large quantities of wheat, hay, grass seed, hazelnuts and other crops to foreign countries - especially Asia.

It’s probably tempting for Democrats, whether in Oregon or elsewhere, to say the companies should deal with Trump. They supported him (or at least some leaders in their industries did). Or Democrats might say that Republicans should convince the president to change course.

But leaders are elected to lead everyone and to work for the greater good. And Oregon’s Democratic leaders have shown no reluctance to oppose Trump policies that have a lot less direct impact on Oregonians - and in some cases are positive. Furthermore, current economic conditions provide an opportunity to do more than just talk.

Gov. Tina Kotek has met with affected Oregon businesses, tasked Business Oregon with conducting a survey of businesses, and opened a dialogue with Canadian trade officials. That’s a start but stops short of the tangible help Oregonians need.

Here are three other things Oregon leaders can do:

Support short-term financial help for small importers and exporters. For starters, Oregon’s congressional delegation should work to make sure the federal Export-Import Bank is adequately funded and is in position to help trade-dependent companies through the inevitable disruption caused by tariff negotiations. The state also should work with the Small Business Administration and its own Office of Small Business Assistance to help affected businesses survive the transition.

Kill or amend all bills that would impose additional regulations or taxes on businesses affected by tariffs. This is the simplest thing the Oregon Legislature could do, and it should be doing it even without tariffs. If tariffs are imposed and the economy slows, or as some predict falls into recession, Oregonians will struggle to hold onto jobs and the state will face decreased tax revenues. While reducing or eliminating any type of tax might increase short-term pressure on the state budget, it likely would pay long-term dividends by preserving jobs and helping businesses survive the transition. Trade-related jobs are even harder to replace than other jobs because re-establishing an international supply chain once it is shut down is both costly and diplomatically complicated.

Compromise with moderate Republicans to override some tariffs and create legislation to make it harder for presidents to unilaterally impose tariffs. This is another task for the congressional delegation but since Democrats holding statewide offices like to voice their opinions on national legislation, this would be a good one to support. This is a rare issue that does not split evenly along party lines. Some pro-business Republicans oppose tariffs – or at least at the level proposed by the President. Some labor Democrats support tariffs – or at least the ones that protect union manufacturers in the United States.

Beyond helping Oregon in the short-term, working together for a compromise on tariffs would be a way to show that members of both parties still can unite for the greater good and to push back against executive-branch overreach - something that has been a problem no matter which party controlled the White House. It also would acknowledge the reality behind Trump’s tariff push: Some countries do engage in unfair trade practices with the United States. The best way to address that reality is through targeted tariffs and negotiations.

All these steps are doable and serve the interest of all Oregonians. They would show that Oregon’s ruling party is willing to be pragmatic and quickly adapt to emerging problems. And they wouldn’t require compromising any core party principles for either Republicans or Democrats. I cannot think of a better way for Oregon’s leaders to rebuild trust than by working together to protect Oregonians from fallout as the global economy goes through transition.

Mark Hester, former business editor and editorial board member for The Oregonian, is a regular contributor for Oregon Roundup.