Reagan Assails Protectionist Trade Measure

President Reagan turned to the American people for help Saturday in fighting a protectionist trade bill before the Senate that would impose tariffs against foreign imports if they exceeded a certain percentage share of the market.

Reagan said the bill in its present form “greatly cuts down my flexibility as President to bargain with and pressure foreign governments into reducing trade barriers.”

He called the cry for high tariffs and import restrictions “a familiar bit of flimflammery in American politics” and said the issue of trade to politicians is “an unending source of temptation, like a 5-cent cigar or a chicken in every pot.”

‘Early Warning Signal’

Speaking from his ranch near here in his regular Saturday radio address, Reagan told listeners to “consider our talk today an early warning signal on free and fair trade.” He urged them to “stand by” as the omnibus trade bill is deliberated by the Senate, declaring: “I’ll need your help in sending them a message.”

The bill was passed by the Democratic-controlled House on May 22 by an overwhelming margin of 295 to 115. The vote blurred party lines as 59 Republicans endorsed the measure.

The White House hopes to fare better in the Republican-controlled Senate, but election-year pressures have made protectionism a popular sentiment even among normally free-trade Republicans.

Reagan spoke one day after the nation’s trade deficit for May was reported at $14.2 billion, causing analysts to predict that the annual deficit will exceed last year’s record $144.6 billion.

Reciprocal Punishment

He warned that protectionist steps taken by the United States would only invite reciprocal punishment abroad and take its toll on American industry in the end.

“The pattern is exactly the one you see in those pie fights in the old Hollywood comedies,” he said. “Everything and everybody just gets messier and messier. The difference here is that it’s not funny. It’s tragic.”

Under the current system, Reagan has the discretion to decide whether to grant relief to an industry buffeted by foreign competition. He can reject a recommendation from the International Trade Commission to levy tariffs against a foreign trader, as he did last year when he refused to block the import of Brazilian shoes to assist the ailing U.S. shoe industry.

A New Round of Talks

Looking toward a new round of international trade talks scheduled to begin in September, Reagan pledged to “make clear our commitment that unfair foreign competition cannot be allowed to put American workers in businesses at an unfair disadvantage.”

But the definition of unfair is subject to many interpretations, and pressure is building in Congress to pass some kind of trade bill before the November elections.

Senate Republicans are laboring to produce an alternative to the current bill that Reagan may be able to swallow rather than risk a bruising veto.

Objectionable Provisions

Among the provisions the White House finds objectionable is an amendment requiring countries with the largest trade surpluses--such as Japan, West Germany and Taiwan--to voluntarily cut back exports to the United States by 10% a year for five years or face severe penalties.

Reagan is to return to Washington on Monday after four days at his ranch riding horses and tending to chores. Statements released to the press each day said the President spent most of his time clearing brush, trimming trees and gathering firewood.

After two days in Washington, the Reagans will travel to New York for the Fourth of July celebration and unveiling of the newly refurbished Statue of Liberty.

Times staff writer Oswald Johnston contributed to this story.