The Senate voted this week to curb President Trump’s tariffs on Canada and Brazil. 

In response to these developments, Brandon Novick, Policy Coordinator at the Center for Economic and Policy Research (CEPR), issued the following statement:

“The Center for Economic and Policy Research (CEPR) applauds Congress for asserting its constitutional authority to rein in the Trump Administration’s unilateral imposition of tariffs. Congressional action to block the administration’s tariffs not only is necessary to protect separation of powers, but it is key to stopping a regressive, reckless policy that is hurting the economy.

“President Trump’s tariffs are not at all strategically sound. Global tariffs have not just been selected for important nascent industries that are in the national interest to grow. Rather, the administration has levied tariffs on key intermediate goods for domestic manufacturing like steel and aluminum. Additionally, farmers have been significantly hurt after China stopped buying American soybeans as a consequence of the administration’s retaliatory tariffs.

“The president’s imposition of tariffs and creation of certain exemptions are also tied to his personal relationships rather than national strategy. Soured relationships with foreign leaders and even an advertisement the president disliked have hampered trade negotiations, leading to tariffs. Campaign donors and politically-connected interests won tariff exemptions, such as big oil companies.

“Global tariffs have also pushed countries to reorient their economic strategy away from the United States, encouraging trade alliances amongst themselves.

“Tariffs can be a useful tool as a tax that the government can use to fund important policy priorities, such as universal health care, child care, and higher education. Similarly, other wealthy nations utilize value-added taxes (VAT) to finance their more comprehensive social welfare programs.

“Tariffs can also serve as an important instrument to help grow specific domestic industries, such as advanced computer chips and electric vehicles. However, tariffs are ultimately a tax on consumers, and raising costs for American families without a sound strategy is harmful for the country.

“While the Senate has and will continue to vote on reasserting its constitutional authority, CEPR hopes both houses of Congress recognize and address the administration’s harmful tariff policy.”

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