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Tariffs on the Table. Now What?

Tariffs on the table

/ January could bring a host of new tariffs, but those tariffs might be bargaining tools rather than simply about taxing trade.

US president-elect Donald Trump sent shock waves around the world when he announced that he would put a 10% tariff on all imports into the US – and as much as a 60% tariffs on imports from China.

No one doubts his intention to use tariffs as a means to boost US domestic manufacturing industries, and in some cases to try and level the playing field for international trade.

What remains to be seen is exactly how tariffs will be implemented.  And that is certainly not as straightforward as it seems.

While the president has the power to enact tariffs, he can face brutal pushback from Congress, state governors, and lobbyists. If these tariffs are seen as ‘unreasonable’ opponents could either contend them directly or simply withhold support for other initiatives, thus thwarting much of Mr. Trump’s agenda.

So, yes the president has executive powers. However, if he is too high handed, he risks turning allies into enemies.  Lessons learned from his previous administration include the critical importance of having allies – lots of them.

Will Tariffs Actually Change Anything?

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