Trump Tariff Exemptions Benefit Politically Connected Firms — ProPublica

Trump Tariff Exemptions and Political Connections

ProPublica's investigation reveals that President Trump's tariff exemptions disproportionately benefited politically connected firms, particularly Reyes Holdings, a Coca-Cola bottler with extensive Republican donations and lobbying ties to the Trump White House. The exemption for PET resin, used in plastic bottles, remains unexplained, despite industry confusion and a lack of response from Reyes Holdings and the White House.

Opacity and Concerns

The process lacked transparency, leading to concerns about politically connected firms obtaining carve-outs behind closed doors. Experts express uncertainty whether this was due to corruption or incompetence. The absence of a formal application process, unlike the first Trump administration, exacerbated the issue. The White House's broad exemption categories also included items that did not fit, such as asbestos, raising further questions.

Specific Examples

• Reyes Holdings and PET Resin: Hired Ballard Partners, a lobbying firm with close ties to the Trump administration, resulting in the exemption of PET resin, benefiting Coca-Cola's plans to shift to more plastic bottles.
• Asbestos: Included in exemptions despite being banned by the Biden administration and not falling under any specified exempted category.
• Agriculture: The American Farm Bureau Federation took credit for several agricultural exemptions, highlighting the influence of lobbying groups.
• Sucralose: The artificial sweetener's exemption remains unclear, though possibly related to pharmaceutical or other reasons.

While some exemptions were temporary, pending further administration investigations, the overall lack of transparency in the tariff exemption process raises significant concerns about fairness and potential abuse of power.