This archive report was first published on 12 August 2019.
Opinion | How to Stop Trump's Trade War Madness ¶
As the US-China trade war continues to escalate, it's clear that President Trump's actions are putting the American economy at risk. The US has imposed tariffs on Chinese goods, and China has retaliated with its own tariffs, causing the US stock market to plummet. But there is a limit to the president's power, and Congress can take steps to assert control over the trade war.
The Constitution gives Congress the power to impose tariffs, and while the president has been delegated some authority in this area, there are still important limits in place. However, President Trump appears to be ignoring these limits, imposing tariffs without providing adequate justification or evidence.
For example, when the president's trade representative, Robert Lighthizer, announced an intention to impose tariffs on $50 billion in Chinese goods in April 2018, he provided a well-documented report outlining the economic justification for the tariffs. However, just two days later, President Trump threatened to subject $100 billion more in Chinese imports to a 25 percent tariff without presenting further evidence.
Since then, the president has continued to escalate the trade war, imposing tariffs on $200 billion worth of Chinese goods and threatening to impose tariffs on all Chinese imports. This is a clear abuse of power, and Congress must take action to stop it.
There are several steps that Congress can take to assert control over the trade war. First, Congress can change the laws that delegate wide tariff authority to the president. This includes Section 301 of the Trade Act of 1974, Section 232 of the 1962 Trade Expansion Act, the International Emergency Economic Powers Act, and the Trading With the Enemy Act of 1917. Each of these laws should be changed to put limits on when, for how much, and for how long the president can unilaterally impose tariffs.
Second, Congress can insist on bringing our allies, including the European Union, Canada, Mexico, and Japan, into our trade negotiations with China. Many of these countries have the same concerns about China's trade practices, and could be asked to join a coalition of countries to challenge China at the World Trade Organization. This would make it difficult for China to retaliate against so many countries at once.
Finally, Congress should insist on regular briefings on the goals for the negotiations with China. Is the primary goal the reduction of the bilateral trade deficit? Stopping the theft of intellectual property? Ending the forced transfer of technology? Or is this all a ruse to force the American economy to be
