Raskin claims Trump uses tariffs as a "money-making tool" and demands donation records to be provided
CNBC
1h ago
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Jamie Raskin, a senior Democratic member of the U.S. House of Representatives, accused Trump of using tariffs as "a tool for profiteering and enriching himself," and demanded records related to various tariff exemptions, including communications involving executives from companies such as Apple and Rolex.
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A senior Democratic member of the U.S. House of Representatives accused President Donald Trump on Wednesday of using tariffs as a "tool for enriching himself and his cronies," and pointed out that the so-called dubious import tax exemptions benefited industry leaders who sought to curry favor with Trump through gifts and donations.

"You have deliberately made a large number of private deals with those companies and industries that receive special treatment from your tariffs when you see that you can benefit from it," Maryland Democratic Representative Jamie Raskin said to Trump in a strongly worded letter obtained exclusively by CNBC.

Ruskin is a senior member of the House Judiciary Committee and former Democratic leader of the House Oversight Committee. In his letter, he highlighted three tariff exemptions—Brazilian meat, diamonds, and smartphones—saying that these exemptions "are hardly justified according to the standards set by the Trump administration."

"However, if we take into account the now world-famous 'Trump tariff discounts,' then it makes sense," wrote Ruskin. He used this term to describe the president's alleged willingness to reduce tariffs for allies and donors when the "price is right."

This letter requires Trump to hand over various records from his second term, including communications between the White House and the Office of the U.S. Trade Representative ( USTR ) regarding any form of tariff reductions in more than a dozen industries.

The letter also requested the provision of communications involving representatives from the private sector, including Tim Cook, the Executive Chairman of Apple Inc., and Jean-Frédéric Dufour, the CEO of Rolex. Laskin demanded that these records be provided by November 11th.

In the letter, Ruskin directly pointed out that Trump was involved in "serious corruption," stating that the real purpose of his aggressive use of tariffs was to obtain "a power lever that can be maliciously manipulated in order to extract exciting concessions for oneself."

This letter cites the jurisdiction of the Judicial Committee over "corruption, conflicts of interest, and the effective enforcement of criminal and civil laws," which may indicate how they will use their oversight powers to pressure Trump if the Democrats win a majority in the House of Representatives or the Senate in the midterms.

Ruskin also linked Trump's alleged abuse of tariffs to the concerns of American citizens about their ability to afford living expenses, listing these two issues as the top concerns of voters in the final stages of the electoral campaign.

"While you are protecting your own personal investments and鳄鱼皮 enthusiasts from the huge impact of your tariffs, the American people are suffering. Independent analysts predict that your latest round of tariffs will cost each American family an average of $820 this year," he wrote, citing data from the non-partisan Tax Foundation.

The latest nationwide economic survey by CNBC reveals that voters are most concerned about government corruption, followed by high prices for food, groceries, and gasoline. Democratic candidates intend to link corruption with these high costs in their campaign messaging.

The White House and the Office of the U.S. Trade Representative did not immediately respond to requests for comments on CNBC's letter regarding Laskin.

Ruskin focused on the extensive tariffs imposed by the United States in July under Section 301 of the Trade Act of 1974.

The Trump administration stated that these tariffs, which apply to more than 80 countries and cover almost all imported goods from the United States, are intended to combat forced labor practices abroad. However, Ruskin and other critics, including the plaintiffs in a major lawsuit challenging these tariffs, believe that these tariffs are actually meant to replace the comprehensive "Liberation Day" tariffs that were overturned by the Supreme Court in February.

"If it is understandable that some doubt the sincerity of your government's sudden concern for victims of forced labor," wrote Ruskin.

He mentioned that Trump decided last year to lift restrictions related to forced labor on the Dominican sugar company Central Romana, despite ongoing allegations of abuse by the company.

It is reported that Jose Francisco “Pepe” Van Zyl, the owner of Central Romana, organized a fundraiser for Trump in 2024 worth 50 million US dollars, and his family company also donated 1 million US dollars to a political action committee that supported Trump that same year. He was also listed as a donor to Trump's White House banquet hall project.

USTR will only grant exemptions for tariff item 301 under certain circumstances, including when additional tariffs do not contribute to reducing practices of forced labor. However, Ruskin wrote that the agency's exemption list "includes some conspicuous—and suspicious—exemptions for certain industries."

Ruskin mentioned the exemption of tariffs on beef and beef products, despite strong opposition from American ranchers, who argued that "there is ample documentation of forced labor in Brazil's cattle farming industry, and that Brazilian beef exports have surged."

In late August, Trump reportedly met with Joesley Batista, the co-owner of JBS, a Brazilian billionaire and the world's largest meat processor, in the Oval Office. The next day, Trump announced that the United States would allow the import of up to 300,000 tons of "chopped beef products" at prices below market rates.

Coincidentally, the Pride of Pilgrim, the American subsidiary of JBS, donated $5 million to your 2024 inauguration fund, which is the largest donation from a single company! wrote Laskin.

Diamond jewelry is also exempt from tariff item 301. Ruskin described this practice as “absurdly untenable,” as the U.S. Department of Labor has already listed these gems as products produced using forced labor or child labor.

Ruskin hinted that this exemption may have originated from a luxurious gold ring given to Trump by the Antwerp World Diamond Center in Belgium in June – the ring was set with 321 natural diamonds and 75 other gemstones. A press release from the company stated that this ring was presented to Trump as a symbol of “the historic trade relationship between Antwerp and the United States” and to commemorate the 250th anniversary of the founding of the United States.

"Diamonds are truly the best friends of a president!" Ruskin joked in his letter.

He also wrote that USTR has exempted Chinese smartphones from Section 301 tariffs, despite the fact that "abusive working conditions are a hallmark of the smartphone manufacturing industry, including Apple iPhone."

He listed several examples of Cook showing goodwill towards Trump, including a reported donation of $1 million to Trump's inauguration committee in 2025 and presenting Trump with a gold plaque in the Oval Office. Laskin also mentioned that Apple donated $25 million to Trump's White House banquet hall project, which is equal to the largest single donation.

"The aforementioned exemptions are just the tip of the iceberg of your severe corruption," wrote Ruskin.

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