Sen. Grassley taking wait and see approach to Trump's proposed tariffs on Canada, Mexico

U.S. Sen. Chuck Grassley, R-Iowa, said Wednesday he would take a step back and see how proposed tariffs on Canada and Mexico play out before he casts judgment.

President Donald Trump has proposed the United States may implement steep tariffs on the two countries as soon as Feb. 1.

Canada and Mexico are the country’s — and Iowa’s — top two trading partners. Close to a third of Iowa's exports go to Canada — $5.5 billion in exported goods in 2023. And Iowa imported about $4 billion worth of goods from Canada in the same year. Mexico is Iowa's second largest trading partner.

Trump told reporters in the Oval Office Monday that his administration was considering 25 percent tariffs on Canada and Mexico starting Feb. 1, according to national news outlets.

"That step back is with some trepidation, maybe," Grassley said of his position during a call with Iowa reporters. "Trump's got a good way of getting us to freer trade and imposing tariffs to bring people to the table that maybe wouldn't otherwise come to the table. And so I hope he's successful. ... Months down the road, I may say it worked or months down the road, I can say it didn't work and it could be harmful to Iowa.“

Grassley said he's always been a "free-trader" in Congress, but acknowledged political winds around trade had shifted and the number of members of Congress who support free trade has shrunk.

"It seems like now free-traders are in a minority," Grassley said. "So I speak with — maybe I'm behind the times as far as the political movement of protectionism.

"I got to look at this from the standpoint that the president talked about putting tariffs on, he won an election, he ought to try to get his programs adopted. Because if you vote for somebody, you expect them to deliver."

Trump is betting that tariffs will strengthen the economy, rather than expose consumers to higher prices. But it’s unclear whether his executive orders will be enough to foster the growing economy with lower prices that he promised voters. Economists say tariffs are likely to cause price increases and job losses.

Grassley said what he has read about Trump's Secretary of Commerce pick Howard Lutnick's position on tariffs, seeing them as more of a negotiating tactic, "relieves some fear I have of the damage that can be done by high tariffs, or tariffs generally."

The senator said he would pay attention to any retaliation by Canada or Mexico on Iowa's agricultural products.

The Associated Press contributed to this report.