Thursday, May 29, 2025
Tariff's
According to the constitution congress has the authority to impose tariffs but many times this authority was granted to the president. There are three reasons called the three R’s. They are revenue, restriction (protect US industry, and reciprocity (bargaining chip to cut deals). Presidents throughout history have used tariffs, most recently in 2009 President Obama imposed a 35% tariff on tires imported from China. In 2002 George Bush imposed tariffs of 30% on most steel imports. Trump imposed tariffs on China in his first term and Biden kept them and added new ones on EV’s. Trump is using tariff’s for all three reasons.
Yesterday a three-judge panel at the US Court of Trade ruled that Trump overstepped his authority with his tariffs. This then limits the bargaining chip reason for tariffs. Now the US Supreme Court will have to decide.
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