Trump to Increase Taxes by 25% on Scotch, Cheeses, Wines, Sweaters, Suits, Sportswear and Other Consumer Items Imported from Europe
The Trump Administration just adopted increased import taxes of 25% on US consumer items, such as cheese, wine, scotch, food, clothing, etc. imported from Europe. They will take effect in the middle of October.
The background is a dispute between Boeing and Airbus over European subsidies to the manufacture of their Airbus planes. The WTO just ruled that the EU was wrongfully subsidizing Airbus to the disadvantage of Boeing on a complaint that was initiated in 2004.
The US airline industry favors retaliatory tariffs but on EU planes, not the long list of consumer goods. They suggest that the plane tariffs be on a go forward basis, rather than on purchased plans and parts already in the pipeline. Boeing has its own troubles with the repeat crashes of its new 737.
This latest tax increase comes at a time when the US economy is slowing, manufacturing is in recession and the stock market has been dropping sharply due to slower job creation, and declining manufacturing and service sectors. Consumer spending has been keeping the economy afloat so it’s unclear exactly what Trump is thinking with a 25% tax that will hurt US consumers and mom and pop small businesses.
Does anyone still remember the Boston Tea Party that helped found our nation? Under the US Constitution, the House of Representatives, not the President, is supposed to be the body that originates taxes. Congress needs to step up and restore its rightful and Constitutionally prescribed role in enacting taxation. We do want a President who skillfully negotiates fair trade agreements on behalf of the American people and brings them to Congress for approval, not one who impulsively and randomly taxes consumer goods.
Prepared by: Lucien Wulsin