Donald Trump has big trade ideas for his next term: putting super-high fees on stuff from China and other places (his advisers like this plan a lot)
Back in the day‚ there was this law called Smoot-Hawley from the 1930s; its still around and Trump could use it to make his ideas work. His team thinks these fees will help fix the US economy but many money-experts dont agree: they say itʼll just make things cost more for everyone
The whole thing is kind of confusing because nobody really knows what these fees are for: sometimes its about getting money to pay for tax-cuts‚ other times its about making companies build stuff in America. Robert Lighthizer‚ Trumps old trade guy thinks it might help bring jobs back — but that takes forever to work
The first thing that worries me are the tariffs. We could have an economic crisis in the first six months of the administration
Trump has four ways to make this happen:
* Trade Act Section 301 (used before with China)
* National security rules from the 60s
* Emergency powers law from the 70s
* That old Smoot-Hawley thing that could raise prices by 50%
Congress might try to stop this — Sen John Thure isnt a big fan of trade fees. But with tax-cuts coming up fast and new bills already in the works from Sen Tom Cotton and others its gonna be a race against time