Author: Maximilian Hess
Published on: 03/04/2025 | 00:00:00
AI Summary:
On Wednesday, President Donald Trump announced a sweeping 10 percent global baseline tariff on almost all imports to the United States. If maintained, the tariffs will prove extremely damaging to the US economy, the American consumer, and the country’s standing in the world. An identical 25 percent tariff on automotive parts is delayed only for a month and will come into effect in May. India and Vietnam, two of the countries to which US supply chains have been most re-routed since Trump’s first administration, face a 26 percent and 46 percent tariff, respectively. The US is still fighting off the last inflation shock caused by the “bullwhip” effect from the seizing up of global supply chains during the COVID-19 pandemic, and the international economic reverberations of Russia’s 2022 invasion of Ukraine. Trump’s tariffs rely on relatively thin standing. Formally, he justifies them under the 1977 International Emergency Economic Powers Act (IEEPA) For the president to use these powers, however, Congress must declare an underlying national emergency and provide justification for it. Any resolution to rescind Trump’s national emergencies can come into effect only if it withstands his veto. The House’s Republican leadership is not expected to allow a vote even on the Senate’s Canada resolution, let alone a future resolution that would affect Wednesday’s tariffs.
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