Trump Seizes Hold on Power via Customs Policies
The Supreme Court of the United States is set to make a historic decision in early November, as they weigh the legitimacy of President Trump's trade policy. The policy, which has been a subject of controversy since its inception, could potentially lead to the largest tax increase for the U.S. economy since the 1950s, amounting to an estimated $3.9 trillion over the next decade.
The tax increase, equivalent to nearly one percent of the U.S. Gross Domestic Product (GDP), has raised concerns among economists and political analysts alike. An unusual open letter beforehand shows how sensitive this decision will be, as liberal and conservative lawyers, together with liberals, warn that supporting the court for a 'taxation by proclamation' of the president would be a constitutional breach.
The power to tax, they argue, clearly lies with Congress, and a decision for Trump's trade policy would open the door to arbitrary taxation. General Motors claims that higher tariffs under this policy could cost them $5 billion alone this year.
The hearing will center around the question of whether Trump can impose a tax without congressional authorization. Companies in the U.S. industry are worried about making a profit under the coming conditions, with approximately 50 to 60 percent of the new duties expected to be borne by U.S. companies.
Traders often find themselves in a predicament due to Trump's erratic trade policy, as they don't know at what terms they should order or price goods, with inventory levels running out. The president, with the power granted by this policy, could have unprecedented control not only over heads of state and CEOs around the world, but also over the wallets of their own citizens.
The anti-tax lobby in the U.S., including think tanks like the Liberty Justice Center, the Federalist Society, and the Chambers of Commerce, is mobilizing against Trump's trade policy. In April, the U.S. Congress refrained from defending its own legislative powers against the White House, which had imposed tariff increases without congressional approval.
In a Senate vote, the last attempt to block Trump's trade policy failed, despite earlier criticism from Republican politicians who felt that their voters were concerned about significantly rising prices due to import tariffs. The name of the case against Trump's trade policy being heard by the U.S. Supreme Court in November is related to the legality of Trump's broad global tariffs imposed under an emergency law.
The case involves several U.S. states and international partners, including the European Union, who are challenging these tariffs. However, a specific case name is not provided in the search results. One related lawsuit was filed by the family-owned toy company Learning Resources.
Many companies in the U.S. are dependent on foreign machinery for their operations. The pressure from the White House, some argue, proved too great, or the courage of the Senators too small. Despite the dominance of Republican-appointed judges on the Supreme Court, the outcome is unpredictable.
If the Supreme Court gives the green light to Trump's trade policy in the question of its legitimacy, this would raise questions about a fundamental realignment of the separation of powers in the US political system. Economists argue that globalization cannot simply be undone in a round of tariff increases, even if they are radical. A significantly strengthened executive, as a result of Trump's trade policy, could override any other institution in a conflict.
