Questions still remain if President Trump will be able to apply tariffs on imports in the long term, and whether trading partners ratify trade agreements negotiated under trade threats.
Questions still remain if President Trump will be able to apply tariffs on imports in the long term, and whether trading partners ratify trade agreements negotiated under trade threats.
Transcript
The effects of last week’s tariff ruling by the Supreme Court continue to ripple across economic and political waters.
In his State of the Union speech Tuesday, President Trump again incorrectly claimed that exporting countries pay tariffs on goods imported into the U.S. Importers and American consumers pay the tariffs on imported goods.
Donald Trump, US President: "I used these tariffs, took in hundreds of billions of dollars to make great deals for our country, both economically and on a national security basis. Everything was working well, countries that were ripping us off for decades are now paying us hundreds of billions of dollars.”
The Court’s 6-3 ruling found the tariffs placed by the Trump Administration under an emergency powers law to be unconstitutional. Thousands of companies have sued the government for refunds of tariffs paid over the last ten months. The U.S. Treasury has collected over $130 billion dollars in tariffs over that time.
Ten percent tariffs placed in the wake of the Supreme Court’s ruling went into effect on Tuesday, will remain active for 150 days, and any extensions would require Congressional action. The new tariffs fall under a section of the Trade Act of 1974.
The American Farm Bureau released a statement encouraging the Trump Administration to avoid using tariffs to settle trade disputes due to tariffs increasing the prices of inputs used in agriculture.
The European Parliament also delayed further action on its deal with the United States.
Alberto Rizzi, Policy Fellow at the European Council on Foreign Relations: “So many of the reasons that made a difficult deal palatable to the Europeans are not on the table anymore, which means it's going to be difficult to find adequate framework for the next deal or to safeguard most of this one. I don't think the EU is keen to discard it, but also sees now very little value in the deal that last year seemed a relatively good point."
For Market to Market, I’m Peter Tubbs
contact: Peter.Tubbs@iowapbs.org
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