Tag: economy
Trump May Claim 'National Emergency' To Impose New Tariffs

Trump May Claim 'National Emergency' To Impose New Tariffs

President-elect Donald Trump may be planning to invoke a national security-related emergency shortly after taking office in order to pass one of his signature campaign promises, according to a recent report.

CNN reported Wednesday that Trump is contemplating an economic emergency declaration as a means of imposing broad, sweeping tariffs on imported foreign goods. Under the International Economic Emergency Powers Act (IEEPA), which hasn't been used since President Richard Nixon's administration, Trump could declare that new tariffs are necessary for national security. One unnamed aide told CNN that "nothing is off the table" when considering how to impose new tariffs.

IEEPA allows a president to unilaterally implement a new tariff program to oversee U.S. imports, without Congress having the ability to provide any oversight or regulation on how those tariffs are imposed. He previously threatened to use IEEPA in 2019 to impose a five percent tariff on Mexican-made goods – with a ceiling of 25 percent — unless Mexico's government took action to slow the number of undocumented immigrants entering the U.S. However, after the U.S. and Mexico negotiated the "remain in Mexico" policy, Trump withdrew the tariff threat.

While Trump was largely able to impose tariffs during his first administration without Congress, one expert is skeptical that Trump will be able to force through his proposed new tariffs under IEEPA. Alan Wm. Wolff, who is a former deputy director-general of the World Trade Organization, wrote in a November blog post that the president-elect likely wouldn't be able to justify a national security emergency to singlehandedly raise tariffs without congressional input.

"Can it be used against trade with all countries, our allies and friends in Europe and Asia, in the Americas, not to mention the poorest countries in Africa? That would simply be too large a power grab to have been within what Congress intended in this statute," he argued.

As Wolff wrote, Trump may have difficulty convincing Congress that there's a national security situation dire enough to warrant an economic emergency declaration. The U.S. economy has been healthy by all measurable metrics for the last half of President Joe Biden's administration, despite him taking office under abnormally high inflation and interest rates due to the stress caused by the Covid-19 pandemic. Additionally, real wages have been steadily climbing since 2022, and unemployment rates have remained historically low despite economist's predictions that the jobless rate would have to go up significantly to lower inflation.

“Over the next four years the United States is going to take off like a rocket ship. But really it’s already doing it," Trump said in a Tuesday press conference.

Reprinted with permission from Alternet.

Donald Trump

Trump Escalates Threats Against Greenland, Panama And Canada

At a press conference on Tuesday, Donald Trump said that it’s possible that he’ll use military force to control Greenland and the Panama Canal once he’s president.

A reporter asked Trump if he could assure that he would not use military or economic coercion to assume control of the two territories, of which he previously said he wants to seize control.

“No. I can’t assure you on either of those two, but I can say this: We need them for economic security,” he said, later adding that “it might be that you’ll have to do something.”

Trump can’t seem to stop bringing up the potential purchase of Greenland, which his son Donald Trump Jr. is currently visiting to reportedly record a podcast.

“Don Jr. and my Reps landing in Greenland. The reception has been great. They, and the Free World, need safety, security, strength, and PEACE! This is a deal that must happen. MAGA. MAKE GREENLAND GREAT AGAIN!” Trump wrote on Truth Social.

The “reps” Trump referred to are conservative activist Charlie Kirk of Turning Point and his incoming personnel director Sergio Gor.

“I am hearing that the people of Greenland are ‘MAGA.’ My son, Don Jr, and various representatives, will be traveling there to visit some of the most magnificent areas and sights,”Trump wrote on Truth Social Monday evening.

Trump ally and financier Elon Musk has expressed support for the fixation on Greenland.

“The people of Greenland should decide their future and I think they want to be part of America!” he wrote on X.

Greenland is an autonomous territory within the kingdom of Denmark. At a press conference on Tuesday, Danish Prime Minister Mette Frederiksen said that the island is not for sale, referencing a previous statement from Greenland’s Prime Minister Múte Egede.

“[Egede] has been very, very clear … that there is a lot of support among the people of Greenland that Greenland is not for sale and will not be in the future either,” Frederiksen said.

Trump’s fixation on Greenland isn’t new. As president in 2019, Trump canceled a planned trip to the island when Frederiksen rebuked his proposal, calling it “absurd.”

“Pissing everybody off by saying we’re just going to buy them outright really bruises our bilateral relationship with the Danes and more importantly ruins any kind of way for us to work this out with Greenlanders,” Jim Townsend, a former senior Pentagon official who has worked on issues related to NATO and defense policy in the Arctic region, told Politico,

Trump has also complained about control of the Panama Canal, which was turned over to the Panamanian government to fulfill a treaty in 1999. After Trump claimed that China controls the canal and that the United States needs to reassert control of the vital shipping lane, Panamanian President José Raúl Mulino rebuffed him.

“Every square meter of the Panama Canal and its adjacent zones is part of Panama, and it will continue to be,” he said in a video released in December.

Before even taking office, Trump has already set off international friction with Denmark, Panama, Canada, and the United Kingdom. Who will be next?

Reprinted with permission from Daily Kos.

Trump Tax Cuts

GOP Fears 'Slow And Messy' Dispute Over Trillion-Dollar Trump Tax Cuts

As Republicans prepare to take over the trifecta of US government, the often divided party is up against a chaotic fight over "whether they should take up tax first this year or immigration," according to a Sunday Politico report.

The "big debate over trillions of dollars in tax cuts," Politico notes is "going to be long, slow and messy."

Brian Faler, the news outlet's senior tax reporter, emphasizes, "There’s a chicken-and-egg quality to the debate though, because it’s hard to know how much they need to raise when they haven’t decided how much to spend. And lawmakers will be subject to furious lobbying by those worried they’re on the menu."

Faler reports, "Deficit concerns are running hot in the House, where many Republicans say a tax bill ought to be completely paid for," but, "That’s anathema to party heavyweights like House Ways and Means Chair Jason Smith (R-Mo.) and Senate Finance Chair Mike Crapo (R-Idaho), not least because it would be extremely difficult to find enough offsets to cover the projected $4 trillion cost."

Faler also notes:

Smith has already signaled he’s ready to deal on the $10,000 cap on state and local tax deductions, amid pressure from colleagues representing high-tax states. Sen. Josh Hawley (R-Mo.) recently proposed a big, pricey increase in the child credit, to a maximum $5,000, from the current $2,000, per kid. Rep. Darin LaHood (R-Ill.), meanwhile, just rolled out a plan seconding Trump’s bid to cut income taxes on Americans living abroad.

There will only be more as the debate heats up, and a key challenge for party leaders will be figuring out how to contain what could be mushrooming demands from their colleagues that would wreck their budget numbers.

Furthermore, the Politico reporter adds, "They’ll have to raise the debt limit too, after a last-minute bid by Trump to increase it before he comes into office, was rejected. And Republicans are promising to also cut mandatory spending by $2.5 trillion. If any of those things get bogged down, that could push off the tax debate even further."

Reprinted with permission from Alternet.

Trump Will Inherit Booming Economy, Declining Crime From Biden

Trump Will Inherit Booming Economy, Declining Crime From Biden

Two weeks ahead of the official start of his second presidency, Donald Trump is slamming the United States as a "disaster" on social media.

In a New York Times report published Sunday morning, White House correspondent Peter Baker lays out how current statistics defy the president-elect's claim.

"New data reported in the past few days indicate that murders are way down, illegal immigration at the southern border has fallen even below where it was when Mr. Trump left office and roaring stock markets finished their best two years in a quarter-century," Baker writes.

"Jobs are up, wages are rising and the economy is growing as fast as it did during Mr. Trump’s presidency," the Times correspondent continues. "Unemployment is as low as it was just before the Covid-19 pandemic and near its historic best. Domestic energy production is higher than it has ever been," Baker adds.

Furthermore, Baker reports "the America that Mr. Trump will inherit from President [Joe] Biden" beginning January 20 "is actually in better shape than that bequeathed to any newly elected president since George W. Bush came into office in 2001."

During his 2024 presidential campaign — and just weeks before his second term — Trump claimed "immigration, crime and inflation are out of control," Baker notes. However, he adds, the president-elect is moving back into the White House with an enviable hand to play, one that other presidents would have dearly loved on their opening day."

"President Ronald Reagan inherited double-digit inflation and an unemployment rate twice as high as today," the Times correspondent emphasizes. "President Barack Obama inherited two foreign wars and an epic financial crisis. Mr. Biden inherited a devastating pandemic and the resulting economic turmoil."

Moody's Analytics chief economist Mark Zandi told the Times that the MAGA leader "is inheriting an economy that is about as good as it ever gets."

Zandi emphasized, "The U.S. economy is the envy of the rest of the world, as it is the only significant economy that is growing more quickly post-pandemic than prepandemic."

Similarly, University of Virginia’s Miller Center's director William J. Antholis told Baker that regardless of Trump's claims, the incoming president is "stepping into an improving situation."

Bates adds, "After inheriting an economy in free-fall and skyrocketing violent crime, President Biden is proud to hand his successor the best-performing economy on earth, the lowest violent crime rates in over 50 years, and the lowest border crossings in over four years.

Reprinted with permission from Alternet.

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