Comment by consumer451
6 days ago
In response, POTUS just declared a global 10% tariff. Does anyone understand if this is legal?
https://www.reuters.com/world/china/trump-orders-temporary-1...
6 days ago
In response, POTUS just declared a global 10% tariff. Does anyone understand if this is legal?
https://www.reuters.com/world/china/trump-orders-temporary-1...
Offhand, yes, this looks legal, under section 22 of the Trade Act of 1974. Such tariffs, however, are limited to 150 days and a maximum rate of 15%.
I think I found the law:
> SEC. 122. BALANCE-OF-PAYMENTS AUTHORITY.
> (a) Whenever fundamental international payments problems
> require special import measures to restrict imports—
> (1) to deal with large and serious United States balanceof-payments deficits,
> (2) to prevent an imminent and significant depreciation of
> the dollar in foreign exchange markets, or
> (3) to cooperate with other countries in correcting an international balance-> of-payments disequilibrium,
> the President shall proclaim, for a period not exceeding 150 days
> (unless such period is extended by Act of Congress)—
https://www.govinfo.gov/content/pkg/COMPS-10384/pdf/COMPS-10...
search for "SEC. 122." to find it quickly.
None of these seem to apply and I am not a lawyer, but if they do not apply then, why would the president have the power of taxation when that is given to the legislative branch not executive branch.
Not clear to me why these new tariffs would be on better footing than the last and the last never seemed to be on good footing.
Its like going 70 mph in a sleepy subdivision because a road sign on the interstate says you can go 70 there.
Trump is taking an law that says "You can do X if Y" and saying "I can do X"
150 days thing is just moving the goal posts.
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The question is if after 150 days..does he just do it again?
The irony is 10% universal global tariff might actually make some economic sense if he got rid of all the other ones
In practice, isn't this just a blanket federal sales tax/VAT? Isn't that inflationary?
I am curious, what do you see as the benefit of this style of taxation?
Potentially inflationary yes but would correct the current account deficit and some of the other imbalances (lack of blue collar jobs, excessive financialisation, income inequality) that accompany it.
Not the best way but not completely stupid either.
If you’re interested in this perspective look up Michael Pettis’s work, he explains it better than me.
To be clear, I’m not defending trump, I think he is an idiot. This would be a “stopped clock is right twice a day” situation if he ends up doing it
Aw shucks, I guess we'll have to wait another year to find out won't we?
In a sense this is the correct level of punishment for all. The courts are slow and deliberative.
The Congress could solve this in a week. Impeachment and removal from office.
You are correct. My country does not have the similar separation of powers the US has. I do not understand why Americans have a hard time realizing this: the President and other elected officials work for YOU. They literally run for office to get the position, and they get voted in. Why would someone let an elected official enrich themselves and their friends with your money? Why would the legislative branch allow that?
A populace with a functioning representative democracy deserves its leaders.
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