The president publicly celebrates regressive taxes on poor people as a major American manufacturer announces a massive sales slump because of his trade war. Congress, meanwhile, does nothing. That’s the predictable news from Washington, D.C.
President Trump tweeted early Monday morning that “tariffs are the greatest” and couple hours later Congress groaned but ultimately didn’t do anything because, frankly, Congress just doesn’t care.
Tariffs are the greatest! Either a country which has treated the United States unfairly on Trade negotiates a fair deal, or it gets hit with Tariffs. It’s as simple as that – and everybody’s talking! Remember, we are the “piggy bank” that’s being robbed. All will be Great!
— Donald J. Trump (@realDonaldTrump) July 24, 2018
Politicians from both parties are watching in slow motion as Trump prepares to gut-punch the economy. Everyone on Capitol Hill knows that steel and aluminum tariffs will increase the price of everything from soda cans and baseball bats to washing machines and sedans. It was unpleasant to learn that Harley Davidson profits slipped further because tariffs increased the average price of a motorcycle by $2,200. It was not unsurprising.
Congress could prevent all of this pain according to Article I, Section 8, Clause I of the Constitution. It is in their power to “collect taxes, duties, imposts and excises” and it is their job “to regulate commerce with foreign nations.” They aren’t.
This isn’t because politicians in either party are heartless people. When Speaker of the House Paul Ryan said Tuesday morning that he thinks “tariffs are taxes,” he meant it. The problem is that, as a body, the legislative branch cares more about shifting responsibility to the executive, avoiding any responsibility for difficult decisions, and staying elected.
Congress gave away their tariff power to the president with the International Emergency Economic Powers Act of 1977 and hasn’t seriously revisited the issue since.
Instead of reclaiming their power and stopping the president, the best the Senate could do was ask Trump to slow down with the tariffs earlier in July. They passed a non-binding resolution, 88-11, pushing the president to advise them before unilaterally whacking the economy in the future. It was as meaningless as it was pathetic.
None of this is new. Congress has been in a hurry to surrender its Article I powers for more than a century now. They would rather pass the buck and avoid responsibility than fix the problem.