Time For Congress To Directly Challenge Trump's Tariffs, Pass Bicameral Bill Reining In His Tariff Authority

Today's extremely poor job growth data reinforces the trend also echoed this week in Europe that we are heading for a sharp deceleration in economic activity and a potential recession.  The Atlanta Fed now sees only 0.5% growth in Q1, while Goldman Sachs projects a growth rate of just 0.9%. On top of that, manufacturing output, a key leading indicator of growth and a major priority for the President, has fallen sharply in recent months and is now at its lowest level since November 2016. 

Much of the blame for this significant deceleration lies at the feet of Trump's reckless trade policy, which has seen new tariffs imposed on over 20% of all US imports. This policy has led to a significant deceleration of global growth, including a near recession in the euro area, as well as a loss of key demand markets for US manufacturers and farmers. All told, the tariffs have led to thousands of US jobs being lost and have contributed to the recent declines in the stock market. 

As a result, removing Trump's tariffs is a key growth imperative for the US economy. This reinforces the need for Congress to more forcefully challenge Trump's trade policy, particularly the illegal national security authority Trump has used to unilaterally impose tariffs. One important way we recommend doing this is the Bicameral Congressional Trade Authority Act of 2019, sponsored by Senators Toomey (R-PA) and Warner (D-VA) in the Senate, and Reps. Kind (D-WI), Panetta (D-CA), Gallagher (R-WI), and LaHood (R-IL) in the House. The legislation provides critical Congressional and Department of Defense oversight on the President's Section 232 ability to use national security as a justification to unilaterally impose tariffs on our close trading partners.

Challenging the President on his trade policy is especially important in light of his new rent-seeking "plan" to charge our NATO and East Asian allies the full cost of US troops deployed in their countries plus an extra 50% premium. This idea is nothing short of extortion of our close allies, and if enacted would shake the transatlantic alliance to its core. If the President also unilaterally imposes auto tariffs on the European Union, a move likely to push the euro area into recession, the transatlantic alliance could witness a very rapid, and potentially fatal, unraveling. These moves can only be seen as intentionally trying to destroy the alliances that have created decades of peace and prosperity around the world. It is our belief, therefore, that directly challenging Trump's ability to impose these tariffs is a critical part of the fight against illiberal authoritarianism both at home and abroad.

With all of the warning bells ringing for the American and global economies, it is time now for Congress to engage and directly challenge the President on his reckless tariff policy.

Related Writings:

Trump's Trade Deal W/China Looks Toothless, 2019 Growth Stagnates - 3/6/19 - The potential trade deal with China looks likely to only increase some purchases of US goods, while doing little to reduce Chinese structural trade abuses. Meanwhile, the trade war has led to a large deceleration in US growth, while stimulus from the tax cut has weakened significantly.

Trump's European Tariffs Would Weaken The US Economy And The Transatlantic Alliance - 2/14/19 - Auto tariffs on the EU would destroy thousands of US manufacturing jobs, raise car prices across the country, and weaken our alliance with our European partners. Congress must act to challenge this looming trade war.

NDN Supports Bicameral Tariff Bill - 2/8/19 - NDN is pleased to endorse and support the Bicameral Congressional Trade Authority Act of 2019, legislation which provides critical Congressional oversight on the President’s ability to use national security as a justification to impose tariffs on our close trading partners.

Trump's Tariffs Are A Growing Threat To The American, And Global, Economies - 11/28/18 - US growth expectations have fallen, manufacturing and agricultural firms now face higher costs and weaker demand, and the trade deficit has surged. With a President unwilling or unable to grasp the risks of a broader trade conflict, it is up to Congress to challenge Trump far more directly on his reckless trade policies.

Iowa, Trump, and the Politics of Globalization/Tariffs - 10/12/18 - Trump’s trade policies are hurting the Iowa economy. His tariffs are unpopular there, and his party is performing badly in the fall elections. Some thoughts on what this means for the Democratic presidential race starting soon.