This Wall Street Journal video explains how the Trump administration implemented tariffs quickly, bypassing the typical lengthy process. It contrasts the usual procedure involving economic analysis, public hearings, and congressional approval with the Trump administration's approach utilizing the International Emergency Economic Powers Act (IEEPA). The video also discusses the congressional response to this expedited tariff imposition.
Trump's expedited tariff process: President Trump used the International Emergency Economic Powers Act (IEEPA) to bypass the usual lengthy process of imposing tariffs. This act, typically used for economic sanctions, allowed him to declare a national emergency and impose tariffs swiftly.
Traditional tariff process: The traditional process involves economic analysis, public hearings, and extensive review, often taking months or years.
Tariff calculation method: The Trump administration used a simplified calculation, taking the trade deficit with a country and dividing it by the amount of imports from that country, sometimes halving the resulting percentage.
Congressional response: Congress expressed concern, with the Senate passing a resolution challenging the President's authority to use IEEPA for tariffs. A bipartisan bill was also introduced to reassert Congressional control over trade policies.
Legal challenges: The video suggests the Trump administration's approach might be vulnerable to legal challenges.
