Kimberly Clausing
The Trump administration has marked April 2 for its next big tariff announcement, one that it says is centered on countering unfair trade practices abroad and imposing reciprocal trade protection. The administration may invoke "reciprocity" in at least four areas: value-added taxes, corporate income taxes, digital sales taxes, and foreign trade barriers. In each case, US tariffs would not be a wise policy response.
The Trump administration has said it plans to counter each trading partner’s allegedly “nonreciprocal trading arrangements," including its tariffs, taxes, subsidies, and regulations. One possible reason for this approach is that it might provide a legal basis for the president to use congressionally delegated authorities to act against trading partners individually. The president has greater authority to levy tariffs under exceptional circumstances such as emergencies, national security, or unfair trading practices abroad. Otherwise, Congress has clear authority over the power of the purse, according to the US Constitution (Article 1, Section 8).
No comments:
Post a Comment