Donald Trump has declared in sending tariff letters to his counterparts across the world “You will never be disappointed with The United States of America”.Unfortunately, for US trading partners, they almost certainly will be.
Any hopes that the “reciprocal” tariffs initially revealed on 2 April would be the end of Trump’s America First trade policy are misplaced.
A series of legal challenges could slow down his tariffs push, with currently two cases expected to be decided by the US Supreme Court. But Trump has other legal mechanisms for implementing tariffs.
Typically, control of commerce rests with the US Congress, not the President. A ruling against reciprocal tariffs,
which Trump has justified under the International Emergency Economic Powers Act, would be a setback. Whether Trump obeys such a ruling is another question.
And either way, the Commerce Department, under direction from the President, can undertake investigations which Trump can then use to justify the imposition of tariffs.
What are termed Section 232 investigations under the Trade Expansion Act are used to determine whether imports in certain sectors pose a national security threat.
These investigations present recommendations and empower the President to act without Congressional approval.
It was this authority that allowed Trump to impose steel and aluminium tariffs in his first term. He used the same mechanism to re-introduce them in his second term, and further increase them to 50 per cent. He also imposed new 25 per cent automotive tariffs.
No comments:
Post a Comment