President Trump wants to prevent any roadblocks to his tariff plan, and has a Plan B if his original plan doesn’t work. He will use a different law to back it up, and to buy him time.
According to the Wall Street Journal, it’s a two-fold plan that would first use Section 122 of the 1974 trade law, and then Section 301.
First, the administration is considering a stopgap effort to impose tariffs on swaths of the global economy under a never-before-used provision of the Trade Act of 1974, which includes language allowing for tariffs of up to 15% for 150 days to address trade imbalances with other countries, the people said. That would then buy time for Trump to devise individualized tariffs for each major trading partner under a different provision of the same law, used to counter unfair foreign trade practices.
The administration officials as more legally defensible than the tariff policy that was found to be illegal this week. The alternative provision has been used many times in the past, including for Trump’s first-term tariffs on China.
There is no final decision yet.
Car Companies Invest in the US
Several foreign companies have announced U.S. investments in response to President Donald Trump’s import tariffs, but German carmakers have been more cautious.
Volkswagen is engaging in significant investments in the U.S. to mitigate the impact of tariffs, as confirmed by CEO Oliver Blume. The company is holding fair and constructive discussions with the U.S. government, aiming to reduce the 25% import levy on auto imports.
Volkswagen has already invested $5.8 billion in U.S. electric vehicle manufacturer Rivian and plans to expand its Audi brand’s production within the U.S.
Additionally, the company is looking to localize production to reduce exposure to import tariffs and align more closely with the U.S. market
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Trump will succeed on this.
I recall the WSJ and Faux (especially Cavuto) attacking Trump’s tariffs last time. Cavuto repeatedly called it madness. A degree in communications apparently made Cavuto an international business expert.
Faux Business has people with degrees in communications, art history and journalism. Quack, quack. quack, … they are all script readers. They got the tariffs wrong.
There are many out there that have been brain washed to the point of brain death that still swallow the ‘swill’ of the legacy media – without a ‘chaser’…