Key Takeaways:
– Donald Trump plans to impose large taxes on all goods coming to the U.S. from Mexico, Canada, and China.
– Trump’s 2018 executive order saw taxes on all steel and aluminum imports citing national security reasons.
– The viability of these tariffs is in question as Congress may need to pass legislation.
– Trump’s tariff plan may potentially face legal challenges, but national security exceptions could nullify these objections.
– Possible retaliatory tariffs are expected from countries like Mexico if the plan proceeds.
Trump’s Bold but Hazy Tariff Plan
Former President, Donald Trump, has big plans in the works. He’s making promises to slap hefty taxes on all goods coming from Mexico, Canada, and China, into the United States. The question on everyone’s mind though, can he really do that?
Understanding the Power Play
This isn’t new for Trump. Back in 2018, he invoked a special rule, Section 232 of the Trade Expansion Act of 1962, to put taxes on all steel and aluminum imports. His reasoning? American national security. His moves continued into 2019, when Trump shook up Mexico with the threat of a 5% tax if they didn’t address illegal immigration.
Congress vs. the Executive Branch
The tricky bit is, the U.S. Constitution says that it’s up to Congress to lay down the law with taxes, duties, and rules for trading with foreign countries. But over time, they’ve handed a lot of that power over to the president. And so far, judges have given this the green light, especially for trade policies.
The Perks of National Security
The current law says that the president can jack up the tariffs on imports if he thinks it’s for the good of national security. The Department of Commerce seemed to agree with Trump’s 2018 decision. If he moves forward with this new tariff plan, they’ll likely back him up again. But it’s uncertain whether lawmakers will let it slide.
The Congress’s Perspective
Some bigwigs in Congress are raising eyebrows at Trump’s plan. Sen. Rick Scott from Florida, who was recently the favorite amongst the Make America Great Again (MAGA) crowd to lead the Senate, says Trump has to get approval from Congress to make his tariff plan a reality.
Expert Opinions on Trump’s Authority
Legal experts give some hope to Trump’s plan though. Warren Maruyama, a former top lawyer for the United States Trade Representative, suggests that the International Emergency Economic Powers Act (IEEPA) gives Trump a lot of muscle on this.
On the flip side, The Economist, a magazine known for its sharp insights on such matters, foresees some potential legal hiccups for Trump’s plan. The North American Free Trade Agreement, which Trump tweaked into the new United States Mexico Canada Agreement law, could be violated by these tariffs, they warn.
There might be a workaround though. National security exceptions, a fancy legal get-out-of-jail-free card that’s part of the law, might make it possible to argue that there haven’t been any violations.
Reactions from Abroad
Trump’s plan isn’t making everyone happy. The president of Mexico has already promised to hit back with similar tariffs on the U.S. It seems like this tariff battle is just heating up. Stay tuned for more.