Trump's Team Aligns for Aggressive Second-Term Tariff Strategy

ICARO Media Group
Politics
12/11/2024 22h31

### Trump's Team Prepares for Bold Tariff Strategy in Second Term

As President-elect Donald Trump gears up for his second term, his former trade chief, Robert Lighthizer, and close allies are working tirelessly to advocate for extensive new tariffs that surpass those seen during Trump's first term. Ohio-born trade lawyer Lighthizer, along with his team, has been actively drafting memos to rally support from lawmakers and the public. Their objective is to demonstrate that the proposed tariffs will invigorate the economy rather than harm it, according to a document reviewed by POLITICO.

Insiders connected to Lighthizer and the Trump transition team have been in discussions with key congressional members and staff to explore legislative measures that would enable Congress to play a role in implementing the proposed tariffs. This move marks a significant shift from established economic policies upheld by both parties for decades. By involving Congress, the tariffs could be protected from being easily overturned by future administrations.

The economic case for these tariffs is expected to be shared publicly in the upcoming weeks. The rationale aims to showcase the flaws in economic models that purportedly fail to predict the positive impact of tariffs on the economy. Proposals include a "universal" tariff of up to 20 percent on all imported goods and a minimum 60 percent tariff specifically on imports from China. According to circulated documents, existing models incorrectly assume that tariffs can't boost domestic production, while studies indicate otherwise.

These proactive discussions indicate a potential major shift in trade policies during Trump's next term. The move also underlines how Lighthizer’s mission to reshape the global trading system has gained substantial traction among Republicans. Historically, Congress holds constitutional authority over trade but has not imposed tariffs for nearly a century, typically deferring this power to the president under special circumstances.

Lighthizer, who did not respond to a request for comment, has remained a central figure in the Trump camp. He continues to communicate regularly with Trump on trade matters and has been refining both the campaign rhetoric and policy planning around tariffs for several months.

Despite rumors that Trump had considered Lighthizer for a second term as U.S. Trade Representative, this has been denied by insiders. However, Lighthizer is still in contention for other key roles such as Secretary of Commerce, Treasury, or a senior White House adviser. His potential appointment would ensure significant influence over the trade agenda.

Moreover, Lighthizer and his team have been preparing for the administration's first 100 days, seeking congressional backing for a legislative tariff approach that could generate revenue for anticipated tax cuts. Representative John Moolenaar, co-chair of the House Select Committee on the Chinese Communist Party, has affirmed that discussions are underway between the White House and Congress regarding a universal tariff.

If successfully implemented, this aggressive tariff strategy could extend to the European Union, which Trump has likened to a "mini China," suggesting a broader application of the trade measures. Meetings in West Palm Beach post-election are likely to continue, focusing on policy sequencing.

Lighthizer's involvement in the transatlantic financial elite's Bilderberg group has already created ripples among international stakeholders, hinting at the far-reaching implications of the proposed tariffs. Many of Lighthizer’s former deputies from Trump's first term are also poised to take on key roles should the tariff agenda advance.

As early as the first day of Trump's term, tariffs may be imposed through executive actions under the International Emergency Economic Powers Act, granting the president wide-ranging authority. Other tariff measures against countries like China would involve longer federal investigations but are reportedly under consideration.

To align with Trump's campaign promises, Trump team members are in dialogue with the House Ways and Means Committee on possibly revising House rules to enable tariff revenue to offset tax cuts. Chair Jason Smith has expressed support for using tariffs as a revenue source for such tax cuts, which would promote domestic production incentives.

The forthcoming term promises significant changes in trade policies, with Lighthizer and his team playing a pivotal role in shaping the economic landscape.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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