WASHINGTON — Today, Ed Gresser, Vice President and Director for Trade and Global Markets at the Progressive Policy Institute (PPI), issued the following statement in response to President Trump imposing a 25% tariff on goods from Mexico and Canada, and a 10% tariff on Chinese goods:
“Mr. Trump’s use of a bad-faith ‘state of emergency’ to launch a bizarre and unprovoked economic attack on America’s closest neighbors and largest export markets is bad economics and bad national security. If sustained, it will mean higher prices for American families on everything from heating oil to fresh vegetables and auto repair bills, increased production costs for American businesses and lost export sales for farmers and manufacturers, diminished American influence in the world, and likely new — in fact, unprecedented — North American security problems for all of Mr. Trump’s successors. It is also bad tax policy: while unable to raise the revenue a modern government needs for defense, retirement, and health programs, tariffs very efficiently shift tax burdens from wealthy households to hourly-wage families, and from services businesses like real estate and financial services to manufacturers, retailers, restaurants, construction firms, and agriculture.
“As damaging as all this will be, the systemic implications of this step for American governance are even worse. One-man creation of a new tariff system is an open invitation to future corruption, as — aware they can create new tariff systems by themselves — all future presidents will face temptation to use tariffs to punish critics and rivals, and to reward supporters and cronies. Still more fundamentally, it usurps Congress’ Constitutional power over ‘Taxes, Duties, Imposts and Excises,’ and substitutes rule by personal decree for legitimate legislation. As such, today’s attempted action is a breach of the separation of powers and a threat to the Constitution. House Speaker Mike Johnson, Ways and Means Committee Chairman Jason Smith, and their Senate counterparts Majority Leader John Thune and Finance Committee Chairman Mike Crapo, must oppose this power grab and, per the Congressional oath of office, support and defend the Constitution.”
PPI recently outlined four key principles for responding to tariff-driven economic isolationism. Additionally, PPI has warned of the economic risks posed by Trump’s tariff policies in a recent report and detailed these concerns in testimony before Congress and in PPI’s own coverage. For further context on the Constitution over tariffs and taxation and how the legislative, not executive branch, has the authority, see the full text of the U.S. Constitution.
Founded in 1989, PPI is a catalyst for policy innovation and political reform based in Washington, D.C. Its mission is to create radically pragmatic ideas for moving America beyond ideological and partisan deadlock. Find an expert and learn more about PPI by visiting progressivepolicy.org. Follow us @PPI.
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Media Contact: Ian O’Keefe – iokeefe@ppionline.org