President Trump’s Reciprocal Tariff Plans Draws Bipartisan Criticism
The US Senate passed a resolution by a vote of 51- 48 that would block a 25 percent tariff on imports from Canada, one of the US’s biggest trading partners. Democratic Senators Tim Kaine, Amy Klobuchar, and Mark R. Warner created the resolution, which has received some support from the other side of the aisle.
Among the four Republican senators who voted in favor of the bill were Mitch McConnell, Lisa Murkowski, Susan Collins, and Rand Paul.
Senator Paul gave a thirty-minute speech on the bill during a legislative session on April 2, specifically on the nature of tariffs. Paul based part of his argument against tariffs on the US Constitution and Anglo-American history, which he finds to prove the ineffectiveness of tariffs.
“Taxation without representation is tyranny,” Paul quoted founding father James Otis at the opening of his speech. This sentiment toward taxation is a “rallying cry” of American patriotism.
Paul argued that President Trump’s reciprocal tariff plan – in which he imposed a flat 10 percent tariff on every country along with reciprocal tariffs on most — was unconstitutional.
The senator emphasized that only Congress can levy taxes according to the US Constitution, and not the Executive Branch. Paul referred to Article 1 Section 8 of the Constitution which states, in part, “The Congress shall have Power to lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts…”
He even compared the taxation levied by the British parliament on the American colonies in the 18th century to Trump’s decision to impose tariffs.
The Constitution forbids one person, the President, from raising taxes, Paul noted. “This is a tax, plain and simple, on the American people,” he exclaimed. “No one man can raise taxes on the people.”
Though this resolution is directed only at Canada, Paul’s speech appeared to address the entire reciprocal tariff plan which targets nearly every country in the world.
Trump was able to do this by declaring a national economic emergency, which Paul is critical of. Paul wants to consider reforming emergency powers, “You can’t have a country ruled by emergency,” he stated.
“Tariffs are a terrible mistake. They don’t work,” Paul said. “They will lead to higher prices. They are a tax. And they have been historically bad for our economy.” The 1930 Smoot-Hawley tariffs passed by President Herbert Hoover, according to Paul, lengthened the Great Depression.
During his reciprocal tariff announcement, President Trump defended his tariff plan and stated it is in the best interest of the US because other countries have taken advantage of American industries for too long and have created considerable trade deficits.
“We cannot pay the deficits of Canada and Mexico and other countries. We used to do it: we can’t do it anymore. We pay for everything they have to pay… We take care of countries all over the world… We have to take care of our people first,” Trump said.
The President claims $6 trillion of investments will come to the US as a result of the tariffs. This will happen if international companies choose to relocate to the US, which is a goal of the tariffs.
In a report for Frontlines, TPUSA White House Correspondent Monica Paige discussed the benefits these tariffs will produce in the US economy. She also provided evidence in defense of the tariffs amid criticism.
Tariffs levied during President Trump’s first term did not produce inflation and created at least 3,200 jobs, Paige stated. Moreover, Secretary of the Treasury Janet Yellen does not believe prices will increase as a result of the tariffs
Even if prices are raised, deflationary tactics, tax cuts and bans, along with domestic oil drilling, will offset those prices, Paige noted.
