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Trump's Tariffs Are Politically Toxic

Trump-Tariff-oct-26 | Chris Kleponis - CNP/Newscom

When the White House rolled back tariffs on coffee, fruit, beef, and farm equipment, it was effectively an admission that the tariffs were raising prices—and that Americans, not foreigners, had been paying for them.

Now, in the closing stages of the midterm campaign, the White House is once again rolling back some of those import taxes—and once again making an awkward implicit admission.

President Donald Trump's tariffs have become politically toxic.

The administration announced late last week that it would lift the 50 percent tariffs on some Canadian imports, apparently in an attempt to help Sen. Susan Collins (R–Maine) survive a tough reelection campaign in which the tariffs have played a significant role.

If this is indeed an attempt to sway voters in Maine, it is not a very convincing one. The Trump administration is removing tariffs on some agricultural and mechanical goods, as well as packaging and plywood, The Wall Street Journal reports. But Trump is also imposing new 50 percent tariffs on "other Canadian goods, including carpet, certain valves, and waste products."

Collins issued a statement thanking the White House for the changes. This is what members of the U.S. Senate have been reduced to—begging the president to cast his capricious, tariff-happy eyes toward products that will hurt people in other states more than in your own. (In fairness to Collons, she has voted repeatedly to roll back Trump's tariffs, but not enough of her fellow Republicans went along with it.)

Still, it's worth asking: What exactly is the pitch to voters here? Here's a tariff cut, now vote for Republicans so the president can continue to arbitrarily tax imports whenever the mood strikes?

It's easy to see why Trump's tariffs have become so unpopular. They are a huge and broad tax increase—the Tax Foundation estimates that 54 percent of imports are subject to Trump's tariffs, which are costing the average household about $1,000 annually—that was imposed without congressional authorization or popular support. They create more losers than winners, as downstream businesses and consumers pay the price for the protectionism offered to American manufacturers. Even the supposed "winners" of the tariff policy tend also to be "losers," since so much manufacturing depends on importing raw materials and intermediate goods.

Perhaps more surprising is how unwilling Republicans are to defend the president's signature economic policy. Or to even talk about it.

The Wall Street Journal's Greg Ip crunched the numbers and found that House GOP candidates have not run a single ad talking about the tariffs during this election cycle.

Just such a fun chart here from @greg_ip. If only we could tease out some meaning. Ah, well, nevertheless. 🤣 pic.twitter.com/1X4AWcWQMV

— Scott Lincicome (@scottlincicome) October 23, 2026

That silence speaks volumes. Trump says "tariff" is "the most beautiful word in the dictionary." But it is now "one of the most hated words in politics," writes Ip.

The only Republicans to mention trade or tariffs in a campaign ad, as far as I've seen, is former Rep. Mike Rogers, who is now running for the Senate seat in Michigan (and thus was not included in Ip's analysis). And he's calling for an end to the "tariff war."

There is a lesson here that hopefully will linger beyond the next week: If you support a policy that deliberately and unlawfully raises taxes and prices, voters will not reward you for it.

It's a lesson that the Republican Party learned long ago, but apparently forgot.

Against economists' advice, a Republican-led government in 1930 implemented a huge tariff hike intended to protect American farms and factories at the start of the Great Depression. Instead, those tariffs worsened economic conditions and triggered foreign retaliation.

When voters went to the polls in 1930, the first midterm after the Smoot-Hawley tariffs were passed, they registered their displeasure. The GOP lost 52 seats in the House that year. Two years later, an even larger landslide would sweep Democrats into power in Congress and the White House, ushering in the New Deal era that reshaped the federal government forever. The two lawmakers who lent their names to the legislation were among those who lost their seats, fittingly.

The most notable difference this time around is that Congress didn't actually pass a tariff bill. The trade barriers were instead imposed directly by the executive. Voters don't seem to care. Republicans were too cowardly to stand up to Trump's unilateral power grab, and now they seem too ashamed to try to defend that policy (and their largely complicit response) on the campaign trail.

As they say, those who don't learn from history are doomed to repeat it. And "doomed" may be a fitting way to describe the Republican majority in Congress right now, thanks in no small part to Trump's tariffs.

The post Trump's Tariffs Are Politically Toxic appeared first on Reason Magazine.

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The US-China biotech trade war that isn’t

On October 22, the US Treasury proposed adding biotechnology to the list of Chinese sectors that American capital may no longer finance. A week earlier, China’s Ministry of Commerce had proposed barring the foreign sale of five biomedical technologies, including cell and gene therapy platforms. Two governments that agree on almost nothing moved in the […]

The post The US-China biotech trade war that isn’t appeared first on Asia Times.

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Trump Exempts Some Canadian Products From Section 338 Tariffs—But His Illegal Trade War Continues

An American flag breaks with a Canadian flag
Illustration: Midjourney

Last week, the Liberty Justice Center (the public interest group I worked with on the case challenging Trump's earlier IEEPA tariffs, which led their invalidation by the Supreme Court)  filed the first lawsuit challenging President Donald Trump's massive Section 338 tariffs against a variety of Canadian imports. Three days later, Trump exempted some previously covered Canadian products from the tariffs, probably to help Maine Sen. Susan Collins and other congressional Republicans fearful of voter backlash in the upcoming midterm election:

President Donald Trump signed a proclamation on Friday that removes some Canadian products from tariffs imposed under Section 338 of the Tariff Act of 1930 and adds others, the White House said. The changes take effect Oct. 30.

Plywood sheets, some paper products, certain machinery and refrigeration equipment, and certain packing crates and boxes come off the list. Some valves, along with carpets, waste products and other goods, take their place.

The tariffs, set at 50% according to CNBC, apply whether or not a good originates under the U.S.-Mexico-Canada Agreement….

The fact that American businesses and consumers in states like Maine are suffering from the tariffs gives the lie to the notion that only foreigners are burdened by them. Trump's action here also underscores how the tariffs have become highly unpopular, and a drag on GOP prospects in the upcoming election.

While Trump may have (perhaps only temporarily) lifted some of the Section 338 tariffs, most remain in place. As noted above, he  imposed additional tariffs on some goods, even as he lifted them on others. And the Section 338 tariffs are still still illegal for a variety of reasons I summarized in my previous post on the LJC lawsuit against them, as well as earlier writings:

I have previously written about why Trump's Section 338 tariffs are harmful and illegal. See my recent Montreal Economic Institute paper on this topic, and earlier pieces here, here, and here. To briefly summarize, the tariffs on Canada are illegal because 1) Section 338 has been superseded by later legislation, 2) even if Section 338 is still operative, Trump's tariffs do not meet its requirements because the Canadian actions they supposedly respond to do not "discriminate" against US goods, as the law requires, 3) Trump's tariffs do not "offset" the Canadian actions (as Section 338 also requires), but go far beyond that, 4) the administration's interpretation of Section 338 runs afoul of the "major questions" doctrine, and 5) if Section 338 is operative and does authorize the Trump actions, it would violate the constitutional nondelegation doctrine (which restricts delegation of legislative power to the executive).

The LJC complaint advances all five of these arguments. To prevail, they need win on only one.

Trump has also used Section 338 to ban some Canadian imports entirely. That too is illegal, though the bans (unlike the tariffs) are not directly at issue in the LJC case. They may well be challenged in future litigation, however.

In addition to illegally usurping congressional power over taxation, the Trump trade war against Canada damages our economy and poisons relations with a key ally. Courts should strike it down, just as they did with the IEEPA tariffs and the more recent Section 122 tariffs. They should also invalidated the massive Section 301 "forced labor" tariffs, which have been challenged in three cases currently before the US Court of International Trade.

UPDATE: It's worth reiterating that giving one person the power to impose and lift tariffs whenever he feels like it is an affront to the rule of law.

The post Trump Exempts Some Canadian Products From Section 338 Tariffs—But His Illegal Trade War Continues appeared first on Reason Magazine.

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UK warns Trump of economic fallout from Argentina's Falklands curbs

British Prime Minister Andy Burnham told US President Donald Trump in a Friday phone call that Argentina's new sanctions law threatens economic interests on both sides of the Atlantic, centring on the Sea Lion oil project north of the Falkland Islands. Buenos Aires says the law defends its sovereignty claim and will not be withdrawn.

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China urges US Treasury to stop proposed restrictions on tech investments

Chinese officials called on the U.S. Saturday to reconsider its proposed rule seeking to further restrict American investments into its tech industry, saying the move would disrupt trade relations between the two countries. On Thursday, the Treasury Department proposed a rule expanding existing restrictions in the Outbound Investment Security Program (OISP) on hypersonic systems, quantum…

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Collins says certain Canadian goods now tariff-exempt

Sen. Susan Collins (R-Maine) announced Friday that nine categories of Canadian products “crucial for Maine’s agricultural industries” will be exempted from U.S. tariffs. The types of exempted goods include paperboard cartons, plastic boxes, refrigeration equipment, agricultural cleaning and sorting machinery, packing and wrapping machinery and seaweed and algae products, among others, according to a press release…

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