Staff Reports
Former President Donald Trump is gearing up to return to the White House with a tariff agenda that’s designed to shake up the status quo more than a Vegas showgirl in a cowgirl outfit. Once back in power, he is expected to wield the authority to impose hefty tariffs without needing a nod from Congress, at least for a little while. This power trip could lead to universal tariffs targeting both rivals and supposed allies, proving that the American trade landscape could be about as predictable as a cat on a hot tin roof.
Experts believe that Trump can get at least part of his tariff game plan into action right off the bat, using laws that have been strewn across the congressional landscape like confetti after a parade. Claims of national security threats might come in handy, and don’t be surprised if he leans on the long-neglected International Emergency Economic Powers Act, which may allow him to impose tariffs faster than a kid drops a candy bar the moment a dentist walks by.
"My view is that the most likely thing to go through Congress is the Reciprocal Trade Act … where we just set our tariffs to the tariffs that other countries charge us," says Kevin Hassett, former @WhiteHouseCEA chairman for the Trump administration on Trump's tariff agenda. pic.twitter.com/qoI1SGAiHH
— Squawk Box (@SquawkCNBC) October 29, 2024
During his first term, Trump bravely ventured where few have dared—the realm of tariffs—using existing laws to impose taxes on steel and aluminum. It was a bold strategy that kicked off a trade war with China that, against all odds, managed to boost some American industries while forcing a bit of a rethink on global trading norms. And while President Biden has merely tweaked Trump’s tariffs with fancy-sounding quota systems, the world of tariffs remains as elaborate as a soap opera plot.
But it seems Trump has even bigger plans up his sleeve. Imagine 10% to 20% tariffs on everything that doesn’t have a Made in America label attached! Not content with that, Trump would like the green light to impose tariffs proportional to those slapped on American goods by foreign nations, which, if it happens, could create a bureaucratic nightmare the likes of which the Customs Department has never seen. Experts are already predicting that monitoring and recalculating tariffs for every country could turn into a Herculean task, best left to the mythological figures of old.
Despite the whirlwind of challenges that such policies might face, including potential lawsuits that could drag on like a bad reality TV show, there’s a prevailing sense of optimism among Trump supporters. They see his approach as a necessary step toward revitalizing American manufacturing. The logic is simple: eliminate tariffs by bringing the factories home. In the logic of the Trump campaign, fewer tariffs equal lower costs for consumers. Whether that works depends on whether enough people are willing to take that leap of faith.
Ultimately, the stage is set for a showdown over tariffs in the upcoming election cycle. As Trump gears up for battle, the question looms: Will the old rules of trade hold, or will America chart a new course where tariffs reign supreme, promising to make domestic manufacturing great again? Only time, and perhaps a few court judgments, will tell. After all, that’s the beauty—and the chaos—of American trade politics today.
