Imagine if Barrack HUSSEIN Obama invoked emergency powers then unilaterally on his own say-so imposed a 17.5% price hike on American citizens then said Mexico and China and Brazil would pay.
What's the national emergency, for example, in regard to the country of Brazil, which we have a trade surplus with, that warrants a 50% tariff imposed by a single person in the executive branch on American citizens?
The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States.
"If you’re designing trade policy based on a false analogy, don’t be surprised when the results are exactly what economists predicted: higher costs, less trade, and a reduction in global competitiveness."
From 2018.
There may be other fiscal effects for the US, however. A substantial decline in Chinese exports to the US will drive down the value of the Chinese currency. That will offset some of the after-tax price of Chinese-made goods in the US. But any lost exports still mean China will collect fewer US dollars and thus buy fewer Treasury securities. That, in turn, will tend to drive up interest rates in the US.
So at the margin at least, taxing imports will drive up prices for US consumers and eventually may raise borrowing costs. Future effects are hard to predict, but no, Mr. President, China is not paying the US billions of dollars in tariffs. Not any more than Mexico is paying for that wall.
What Is A Tariff And Who Pays It? Earlier this month, President Trump escalated his trade war with China by announcing 10 percent tariffs on...
taxpolicycenter.org