Rep. Mike Kelly, R-16th, who represents Butler County, sat down with Butler Eagle reporters on Tuesday March 10, to talk about the latest happenings in Washington. This is Part 1 of a series following that Tuesday conversation.

Rep. Mike Kelly, R-16th, has been a staunch supporter of President Donald Trump’s economic agenda. But he also speaks with caution on topics like tariffs.

A member of the Committee on Ways and Means, and chairman of the Subcommittee on Tax, he’s touted the One Big Beautiful Bill Act as providing tax cuts, spending cuts and expanding American energy.

But in a conversation with the Butler Eagle on Tuesday, March 10, Kelly said that while he does see “some consistency” with the tariffs that are in place, he also has concerns over how they could affect companies and industries with limited suppliers.

Kelly’s comments on the economy come at a time when energy prices risk going up due to the conflict in Iran impacting oil supply and while Trump’s tariffs go through various legal challenges.

Ultimately, Kelly said, it all comes down to “how much does it cost to put a roof over your head, raise your children, clothes on their back, food on the table.”

“We’ve been struggling with the affordability factor, because things are just really expensive,” Kelly said. “One of the things that drives the cost of everything up is energy. And we’re very strong on domestic production. Now, what’s going on in the Middle East is driving the price up, and it’s supply and demand.”

Post-COVID-19, inflation has been a persistent issue, with grocery prices and other costs going up. Now, American consumers are seeing gas prices spike with delivery disruptions near the Persian Gulf.

“It’s always going to come down to how much the cost of living is. Rather than talking about just affordability or inflation, it’s how do you get by and I don’t know that today, we can look at anything and say ‘we can stabilize this.’”

Kelly said he sees stabilizing energy costs as the key to “almost everything,” and that lower energy prices is vital to a healthy economy. This includes tapping into domestic energy sources more so than foreign supplies.

Much of the foreign oil the U.S. imports has to go through the Strait of Hormuz near Iran, where delivery is completely blocked right now.

Kelly also bemoans relying on other countries with resources that may be led by regimes in opposition to the United States, like Russia or Iran.

“It makes no sense,” Kelly said.

Kelly, whose background is in the automotive business and who owns multiple car dealerships, said he’s seen through his businesses how tariffs interact with complex factors like global trade markets and the supply chain.

One of the issues, he pointed out, was what being “American-made” means. Companies can have suppliers all over the place.

For example, Hyundai is a Korean company. But the Hyundai Elantra is manufactured in Alabama. And while Chevrolet is American, its Cheyenne pickup truck is made in Mexico, Kelly said.

American-made cars can also receive parts made in other countries.

“The president was very accurate about how we want you to have your products here, we want you to make them here,” Kelly said. “And I can tell you from the business I’ve been in all my life, there is not truly any car or truck that is made with every part being made in America.”

Kelly said over the past year, he has been able to work closely with Jamieson Greer, the head United States trade representative, on the issue of tariffs impacting certain industries.

Kelly supports the president’s overall plan, with “huge investments” made in U.S. industry to “make things here.” The idea, Kelly said, was to drive that model: if you want to build in this market, make it here and leverage through tariffs.

But with global supply chain, things are always tricky.

“We have certain companies that only have one supplier and they’re not in the United States,” Kelly said.

Kelly also pointed to how critical a strong domestic supply of energy is with the rise in artificial intelligence projects and data centers that power such technology. He compared it to a time when mills built along the rivers in Pittsburgh allowed for easier transportation of resources.

Kelly also acknowledges how much is unknown in relation to artificial intelligence.

“I see there’s a good side to it and there’s another side that I’m just not sure about,” Kelly said. “How far does it go? Where does it stop?”

Additional uncertainty comes from people not understanding how it works, and also the lack of ability to trust information. With so much misinformation and negatives weighing against the ways AI can benefit society, it’s hard to say how it will help, Kelly said.

“We are so reliant on this right now, but what we don’t know is, what is the overall cost of this? How do we know who’s talking to us?” Kelly said. “We look at AI and think this is the answer to everything. I think it could be a big help, especially looking at ability for people to live longer, because there’s an intervention earlier on in our lives.

“There’s a lot of plus sides, but the other side, I want to know the unknown, that’s something we need to look at.”