Economics/Class Relations

Stopping Trump’s Tariffs with A New Trade Act

Zeihan on Geopolitics

Stopping Trump’s Tariffs with A New Trade Act

 

by Peter Zeihan on April 16, 2025

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It’s hard to equate Trump’s tariff policies to much of anything, but the movie “Unstoppable” where Denzel Washington needs to stop a runaway train might be the best I can come up with. And just like in the movie, there is a quickly approaching curve that the train is going to fly off (the curve in this analogy is stagflation, recession, and a hindrance of US industrialization).

All standard measures of stopping this ‘train’ are gone. Both political parties are fractured, Trump has surrounded himself with loyalists, and the traditional policy influencers have been sidelined, while the judiciary doesn’t typically intervene in trade policy, Congress does have constitutional authority over tariffs. While this power was ceded to the president through the Trade Act of 1974, a new bi-partisan effort called the Trade Act of 2025 could reclaim it. This bill would require congressional approval for tariffs to remain in place beyond 60 days.

Even if this did make it to Trump’s desk, it would be sent back to the Senate and require a veto-proof majority, which isn’t going to happen any time soon. It’s probably going to take red states feeling some significant economic impacts before we can entertain the idea of slowing, much less stopping, this train.

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