Republican donors slam Trump on trade, vow to fight tariffs

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Influential conservative billionaire Charles Koch hit out at the Trump administration's "protectionist" trade policies over the weekend, as his donor network said it would be selective over which Republicans to support in the upcoming midterm elections.

Koch, who has close ties with Vice President Mike Pence, warned that acting “in protectionist ways” erects “barriers which make everyone worse off” ahead of a three-day Koch network retreat, at which more than 500 donors discussed strategy for November's midterms.

Charles Koch /VCG Photo

US President Donald Trump has imposed tariffs on China, the EU and Canada among others in recent months following a Section 301 investigation – circumventing congressional approval in the US and the World Trade Organization.

Americans for Prosperity, the political arm of the Republican-associated Koch network, has indicated it is willing to help Democratic candidates who oppose tariffs in the midterms, which are less than 100 days away. It is also funding advertising and lobbying pushing the value of free trade.

Who is Charles Koch?

Charles Koch oversees Koch Industries, the second largest private company in the US. He and his younger brother David are typically referred to simply as the Koch brothers, a pairing which has spent millions of dollars in support of conservative causes. David has now stepped back due to ill health. The network was founded 15 years ago in response to tariffs on steel launched by the George W. Bush administration.

"From the beginning we've said that tariffs and protectionism is a bad idea," Tim Phillips, president of Americans for Prosperity, said in April.

"It's a tax on American consumers because a lot of the product they're buying will cost more and it hurts American industries when countries retaliate."

The Democrats need a net gain of at least 23 seats to win control of the House of Representatives, and only a two-seat gain in the Senate – although in the upper chamber they must defend many more seats than they attack.

On Monday, Americans for Prosperity said it would not support Republican Kevin Cramer in his race to unseat Democratic Senator Heidi Heitkamp in North Dakota.

In a rare interview over the weekend, Charles Koch said he regrets supporting some Republicans, according to Buzzfeed, and will back candidates who are open to building coalitions on issues he supports, regardless of party affiliation.

Koch Foundation president Brian Hook told donors: "The divisiveness of this White House is causing long-term damage. When in order to win on an issue, somebody else has to lose, it makes it very difficult to unite people to solve the problems of this country.”

The Kochs were unenthusiastic backers of Trump in 2016 and oppose his policies on trade and immigration, but the president has implemented several of the network's policy goals – notably on tax and deregulation.

Officials said at the network's annual conference in early 2018 that Americans for Prosperity was prepared to spend up to 400 million US dollars on the congressional races – a 60 percent increase from its investment in the 2016 election. But three months ahead of the election it is only involved in seven contests, according to Buzzfeed.