Get Ready for Trump’s Massive New Tariffs

The media is full of bloviating about how Donald Trump gained reelection thanks to voter concerns about inflation and the higher prices following the Covid pandemic - most ignoring that (i) inflation was a global phenomenon, and (ii) that rapacious corporate greed pushed prices higher as numerous industries enjoyed record profits.  On social media I likewise saw MAGA cultist "friends" whining about higher prices while totally ignoring Trump's actual economic proposals and how his tariff plan would significantly increase consumer prices, especially a 60% tariff on goods from China.  Indeed, numerous articles have looked at retailers stockpiling goods and preparing to increase prices to offset the impact of tariffs on their corporate bottom lines.  The additional irony is that Trump and his acolytes want to use tariff revenues to fund further tax cuts for the very wealthy and corporations.  Stated another way, the Trump plan is for everyday Americans to pay higher prices so that the very rich can enjoy further tax cuts while regular taxpayers see little benefit.  The MAGA base and those who abandoned Harris to vote for Trump may soon get what they deserve.  A piece in Politico looks at the preparations for the Trump tariffs:

President-elect Donald Trump’s former trade chief and those close to him are preparing to aggressively sell their plans for massive new tariffs on imports that will go far beyond anything seen in Trump’s first term.

Robert Lighthizer, a gruff, Ohio-born trade lawyer, and his allies have been circulating memos among themselves as they prepare to convince lawmakers and the public that their plans for dramatically higher tariffs will energize the economy instead of tanking it, according to a document viewed by POLITICO, provided by a person close to the policy planning.

Advisers close to Lighthizer and the Trump transition also have been talking to key lawmakers and congressional staff about how Congress might even take a role in imposing the incoming administration’s tariff plans through legislation — an action that would signify a break from mainstream economic policymaking embraced by both parties for decades, but would also prevent the tariffs from being unilaterally revoked by a future president.

The economic justification for the tariffs could be released by Trump allies in the coming weeks, said the person, and will show “the failures of economic models to accurately predict changes to the economy” as a result of tariffs. Trump’s proposals, which aim to promote domestic manufacturing and lessen reliance on foreign countries, include a “universal” tariff of up to 20 percent on all goods coming into the U.S. and at least a 60 percent tariff on all imports from China.

Those discussions and preemptive efforts to counter criticism signal an even greater shake-up on trade during Trump’s second term and show how Lighthizer’s ideologically driven mission to reorder the global trading system has gained a level of acceptance among Republicans not seen during the president-elect’s first term. Congress, which has constitutional jurisdiction over trade matters, has not imposed tariffs in nearly 100 years, instead granting the president the power to do so — under extraordinary circumstances —through decades-old laws.

For months, Lighthizer and his inner circle have been preparing trade and economic policy actions for the administration’s first 100 days. Part of that effort has included getting Congress on board to consider a legislative approach to tariffs, which could provide a revenue source to pay for a plethora of expected new tax cuts.

More buy-in from Congress could be key for Lighthizer to deliver on a more aggressive tariff strategy that Trump has touted on the campaign trail. Additional action could be taken against the European Union, which Trump has described as a “mini China” and Lighthizer has accused of enjoying an unfair trading advantage against the U.S.

Lighthizer has also been hitting the road as an unofficial Trump surrogate — sometimes with chilling effects for wary U.S. allies. A few months ago, Lighthizer unexpectedly attended a meeting of the Bilderberg group — an annual meeting of the transatlantic political and financial elite — delivering comments that were “terrifying to everybody who was there,” according to an attendee.

A familiar cast of characters is likely to be implementing and defending that tariff agenda in Trump’s second term. Many of Lighthizer’s deputies from the first term are on the short list for USTR or other economic posts . . . . .

Though no final decisions have been made, Trump could start, as early as Day 1 of his term, to impose tariffs through executive action under the International Emergency Economic Powers Act, a law that gives the president broad authority to take trade actions. Other tariff actions Trump is expected to take are being explored under laws he used during his first term to impose duties on China and other countries.

Trump team members close to Lighthizer are also having conversations with House Ways and Means Committee staff under Chair Jason Smith (R-Mo.) on whether House rules need to be changed to allow tariffs to be used to offset any lost revenue from a potential extension of Trump’s 2017 tax cut package, according to two people granted anonymity to describe internal discussions.

“We’re likely to see in a reconciliation bill … that’s raising revenue through tariffs on imports and taking that savings and using it to cut taxes and create incentives for domestic production,” said the person familiar with conversations between Trump’s team and Congress.