In the opening salvo to the upcoming trade war, President-elect Donald Trump announced that one of his first acts as president will be to impose tariffs. 25 percent customs duty For Canada and Mexico, 10 percent Tariffs against China. In this case, President Trump is trying to use tariffs as leverage to force Canada and Mexico to take action on border issues, but there are seemingly endless reasons to propose tariffs.
It is difficult to predict whether the president's tariff announcements on social media will actually occur, but if Congress takes steps to curb the president's abuse of trade powers before Inauguration Day, tariff increases could result. It is a reminder that much of the damage is preventable. .
By targeting our nation's top three trading partners, President Trump will do whatever it takes to disrupt trade flows and reverse U.S. trade commitments, some of which he negotiated. It shows an attitude that it doesn't matter. Data collected by census bureau So far this year, the U.S. has imported $632.3 billion in goods from Mexico and $572.9 billion in goods from Canada, accounting for more than a third of all U.S. imports. There is.
Now imagine adding a 25% tax on all these imported goods. Because that's exactly what Trump said he would do. This would not only raise the price of essential goods such as gasoline and agricultural products, but also undermine U.S. manufacturing, which remains competitive through the consolidation of North American supply chains.
Take the example of automobiles, a highly integrated supply chain. North America ranks as the third largest automaker in the world. Manufacturing jobs span multiple states and provinces. In all three countries. However, parts may cross borders to manufacture these vehicles 7 or 8 times Before final assembly. Imposing tariffs on these products means imposing taxes every time the parts cross the border. It adds up quickly.
Equally concerning is the fact that by calling for new tariffs on Canada and Mexico, President Trump is undermining the rules agreed to in the United States-Mexico-Canada Agreement. he claimed “This is the largest, most important, modern and balanced trade agreement in history. All of our countries will benefit greatly.”
He now claims that either he made the wrong deal or that America's trading partners cannot guarantee the commitments the United States has made in international agreements. All of this begs the question: why would trading partners seek to negotiate trade deals with the United States again?
The uncertainty President Trump has already injected into the trading system even before he took office should raise red flags in Congress. The Constitution gives Congress the power to regulate trade with foreign countries, but for decades Congress has delegated some of that power to the president.
When President Trump says he will issue executive orders on the first day of his second term, he is specifically referring to these delegated powers. Congress still has time to restore these authorities and avoid a potential trade war.
Last week, Representatives Susan DelBene (D-Washington) and Don Beyer (D-Va.) Customs Abuse Prevention ActIt would limit the president's ability to enforce the law. International Emergency Economic Powers Act Establishing tariffs or quotas for other countries.
This is a good start, but there is more Congress can do. trade analysts, wider list of customs authorities Congress should act quickly because it could be misused by President Trump. abolition or reform they.
If widespread tariffs are enacted, as Trump has promised, the following countries will be most affected: working americansmany of whom are still struggling to make ends meet even as inflation cools.
Voters are unlikely to respond well to rising prices, but Congress needs to keep this in mind heading into the midterm elections. Worse, if Congress fails to act, it will relinquish its constitutional authority over tariffs and contribute to the collapse of U.S. trade policy.
Inu Manak is a trade policy fellow at the Council on Foreign Relations.
