Trump's Tarrifs Cancelled

The results of most Supreme Court rulings in Trump’s second term have been mostly rubber-stamping approvals of his misadventures in legal limits to Presidential power. The February ruling outlawing his jawbone tactics with individual countries was a major blow. The President had spent months practicing the “Art of the Deal” in fixing tariff rates. As a major curb to executive power, the court ruled that the Congress had not delegated the authority to set taxes, so the multiple deals were struck down in a single blow.

The consequences were significant not only in limiting the President’s power, but also in raising questions of how to resolve the mess of the refund crisis and the economic fallout. For the thousands of American businesses that were forced to pay these higher tariffs, the question became how could they get their refunds on the illegal taxes. Billions are being processed for importers and/or retailers, but the process has faced several logistical glitches simply because of the massive numbers of transactions.

To further complicate the process, customers who paid higher prices due to these higher tariffs are also demanding refunds. Although that depends upon how much the importers decide to share the savings rather than just cut future prices. That introduces a business relationship issue that goes beyond individual transactions. Will the customers get a lump sum settlement for those charges over several months or will the “sharing” be provided over a longer period of time. Will some segments of industries now seek another recourse to protect their products from international competitors?

The Congress didn’t complain about the President usurping the “power of the purse” and authority to level taxes, but the Constitutional balance between the branches of government has been restored somewhat. Some U.S. manufacturers may find themselves facing new competitors and may need to negotiate their prices. The President, had played fast and loose with the traditional processes of government, was reined in, but it didn’t seem to quell his appetite for grandiosity. For him, everything has to be the biggest and best or the worst with no medium in between. The addition of a ballroom to the White House and a Triumphant Arch also seem to have taken their lumps.

The unpopularity of the tariffs also took a toll of the President’s poll ratings, which are at an all-time low. There is still time for a political recovery before the mid-terms, but he seems unconcerned and is focused more on rigging the system. In spite of the Constitution giving voting regulations and administration exclusively to the individual states, he seems determined to interfere in the process. Of course, on the other hand in another ruling the Supreme Court took another hatchet to the voting rights act that restricts protections for minorities. Which is a victory for his battle against people of color being able to vote.

by John Suddath This email address is being protected from spambots. You need JavaScript enabled to view it.