The Supreme Court tariff ruling has created the need for U.S. Trade Representative Jamieson Greer and U.S. Commerce Secretary Howard Lutnick to modify the baseline tariff approach with the approvals of President Trump.
The baseline tariffs are being reset to 10% with upward adjustment to 15% as planned. The reciprocal tariffs will not require any substantive modifications as most of the Free Trade Agreements have been cemented with reciprocity tariffs as part of the negotiated deals.
USTR Greer appears on Bloomberg to clarify the current situation and provide some information as to the transitional baseline tariffs as now modified. Additionally, and importantly, Greer begins discussing the USMCA review and his acceptance that President Trump is openly questioning the value for us. Greer notes Mexico and Canada being used as import hubs to avoid tariffs is a big issue. WATCH:
Section 232 [Steel and Aluminum examples] of the Trade Expansion Act of 1962 (19 U.S.C. §1862, as amended) authorizes the President to impose trade restrictions—such as a tariff or quota—if the Secretary of Commerce determines, following an investigation, that imports of a good “threaten to impair” U.S. national security. {SOURCE}
Section 301 tariffs are a trade enforcement mechanism established under the Trade Act of 1974. They allow the U.S. government to impose tariffs on imports from countries that are found to be engaging in unfair trade practices. The Office of the United States Trade Representative (USTR) conducts investigations to determine if a country is violating trade agreements, and if so, it can impose tariffs as a corrective measure {SOURCE}
Section 122 of the Trade Act of 1974 allows the U.S. president to impose tariffs of up to 15% to address “large and serious” balance-of-payments deficits. This authority can be exercised without prior congressional approval for a limited duration of 150 days. After this period, any tariffs must be extended by Congress. {SOURCE}
*FYI, there is a lot of distracting noise in the various social media platforms about internecine MAGA battles and ego-driven points of specific interest. CTH chooses to focus energy and attention on the substantive policy issues that will generate substantive policy outcomes for America.
Posted in Auto Sector, Big Government, Big Stupid Government, Economy, European Union, Legislation, media bias, President Trump, Taxes, Trade Deal, Uncategorized, United Kingdom (UK) and Great Britain, USA
