Grassley Talks Trade, Tariffs, and Tax Reform in Visit to Southeast Iowa
Senator Chuck Grassley – May 2025 (photo by Oskaloosa News)
OSKALOOSA, Iowa — Senator Chuck Grassley paid a visit to Mahaska County this week, addressing a small group of local media and constituents with a broad overview of national policy issues currently impacting Iowans. The discussion covered trade, agriculture, energy policy, tax reform, and the future of federal safety nets like Medicaid.
A recurring theme throughout the conversation was economic uncertainty, particularly stemming from international trade tensions and shifting tariff policies. Grassley acknowledged that while Iowa’s economy remains relatively strong, farmers and manufacturers are watching closely as the federal government enforces tariffs and negotiates retaliatory trade agreements. He characterized the mood among Iowans as one of cautious support, pleased to see a president acting on campaign promises but concerned about the long-term effects on export markets.
One key issue raised was the agriculture sector’s vulnerability during trade disputes. Historically, when foreign governments retaliate against U.S. tariffs, agricultural products are often first on the chopping block. While there has yet to be significant retaliation during the most recent round of tariff enforcement, Grassley said he’s urging federal agencies—particularly the Environmental Protection Agency—to strengthen support for biofuels like E15 ethanol and biodiesel. Doing so, he believes, would stabilize commodity prices and mitigate any fallout from future trade conflicts.
In terms of legislative action, Grassley reiterated his long-standing view that Congress should reassert more control over tariff authority. He supports a framework in which Congress could review and potentially block tariffs imposed by the executive branch after a set period, such as 90 days. However, he admitted that such a power shift is unlikely in the current political climate, even though he sees it as a necessary course correction to restore constitutional balance.
The conversation also touched on the future of federal tax policy. With major portions of the 2017 Tax Cuts and Jobs Act set to expire at the end of the year, Grassley warned of a potentially historic tax increase unless Congress acts. He framed the House-passed tax extension bill as essential to preventing a spike in taxes for middle-class Americans. He also expressed skepticism over provisions in the House version that would dramatically expand deductions for state and local taxes, arguing that such changes disproportionately benefit high-tax states and could jeopardize Republican support in the Senate.
Another area of debate is the proposed changes to Medicaid. Critics have voiced concerns that the current Republican proposal—tied to the broader tax and budget legislation—would strip coverage from hundreds of thousands of Iowans. Grassley pushed back on that framing, clarifying that the changes primarily involve work requirements for able-bodied adults. He noted that similar reforms to welfare programs in the 1990s had positive outcomes in terms of workforce participation, and stressed that anyone who is working, studying, caregiving, or disabled would still qualify under the proposed rules.
As Congress heads into a pivotal stretch of negotiations, Grassley emphasized caution and pragmatism. While he expressed support for key Republican initiatives, he acknowledged the narrow margins in both chambers and the need to craft legislation that can clear both the House and Senate without triggering unintended economic consequences.
Grassley’s visit comes at a time when Iowa’s political landscape remains engaged on issues ranging from rural health care access to agricultural resilience and global competitiveness. His remarks suggest a senator trying to balance party priorities with on-the-ground concerns in a state that remains heavily dependent on trade, energy, and federal programs.
