Reagan Warns of ‘Kamikaze’ Protectionism

President Reagan today denounced a sweeping revision of the nation’s trade laws, approved by the House, as “kamikaze legislation” that would throw millions of Americans out of work and “send our economy into the steepest nose-dive since the Great Depression.”

Reagan, in a speech to the National Assn. of Manufacturers, said: “America doesn’t need to hide behind trade barriers. Given a level playing field, Americans can out-produce and out-compete anyone, anywhere on Earth.” The audience of about 400 people sat silently through the 20-minute speech, interrupting only once with applause.

The President also announced “the framework of an agreement” to open Japanese markets to U.S. computer chips and to prevent Japanese companies from dumping their chips on U.S. markets. The issue has been the subject of intense negotiations between the two countries.

Significant New Access

Reagan said details of the agreement are still being worked out, but that “this framework should allow for significant new market access.”

His speech represented a new offensive against election-year pressures to erect trade barriers and impose retaliatory tariffs to curb America’s huge trade deficit.

Just last week, the House voted overwhelmingly in favor of a trade bill that would require the President to take tougher action against trading partners that subsidize exports to America while preventing U.S. goods from entering their markets.

The bill won substantial Republican support, with 59 GOP lawmakers joining with 295 Democrats in voting approval.

‘Potentially Destructive’

“This bill is so potentially destructive that even many of those who voted for it did so in the expectation it would be vetoed and so never become law,” Reagan said.

“Well, if it comes to that, I assure them they will get their wish,” he added. “The Democratic leadership may think this is clever politics in an election year, but the American people see this for what it is--kamikaze legislation that could take their jobs down in flames.”

He said the legislation “is really an ominous anti-trade bill that could send our economy into the steepest nose dive since the Great Depression.