On October 25, nearly 50 prominent economists, including Ben Bernanke and Janet Yellen, urged the U.S. Supreme Court to overturn most of President Trump's global tariffs, stating that these tariffs were based on a misunderstanding of the global economy.
These economists pointed out in a legal opinion that trade deficits between the United States and other countries are "normal," not the kind of "unusual and extreme" threat cited by the Trump administration when invoking emergency orders to impose broad tariffs. The tariffs themselves cannot narrow the trade deficit. [heart][heart] It must be said that such simple principles are not unknown to Trump and his team, but in order to achieve the goal of making America great again, they have not found a more effective way. Raising the tariff stick is both exciting and quick!
These American economic figures believe that it is unreasonable for Trump to impose tariffs on many countries based on the "almost impossible to balance trade deficit." Reciprocal tariffs do not "solve" the trade deficit issue. On the contrary, they will have an impact of tens of billions of dollars on the economy and affect every family and state.
In fact, Trump and his team are not unaware of the duality of the tariff war, but in the effective term, what measures can quickly fill the huge debt hole and quickly realize industrial revitalization to stabilize the voting base? These experts have not given practical opinions.[facepalm][facepalm] Lack of strategic continuity and strategic composure is indeed a hard flaw!
Additionally, the economists pointed out that these universally applicable tariffs would have a significant impact on the U.S. economy, with a scale that may trigger the "substantial question doctrine," which means that Congress needs to provide clear authorization, but the International Emergency Economic Powers Act (IEEPA) does not provide such authorization.
In early April this year, Trump introduced so-called "reciprocal tariffs," imposing tariffs on almost all trading partners, with specific rates depending on each country's trade deficit with the United States. [image][image] The U.S. International Trade Court previously ruled that Trump's tariffs were illegal, and the federal appellate court upheld that ruling. Trump then appealed to the U.S. Supreme Court, which will hold oral arguments on November 5 to review whether Trump's tariff measures have legal basis. [image][image]
Original article: www.toutiao.com/article/1847006219798532/
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