Posted by Colin Richards on

Trade Wars

Trade Wars

There’s a never-ending stream of political news these days, but the stock market has remained relatively resilient. The market successfully weathered potential distractions that may have been detrimental in previous years, but that calm may end as as there have been ongoing discussions about tariffs with global trade partners.1

In the past, the presidential power to deploy sanctions without congressional approval has been kept in check by the provision that sanctions may only be enacted in the interest of our nation’s security, as authorized by the Trade Expansion Act of 1962.2

President George W. Bush challenged that premise in 2002 when he increased tariffs on select steel products. The impact was short but impacted about 200,000 jobs in U.S. manufacturing. Moreover, the World Trade Organization ruled the tariffs illegal, stating they violated U.S. trade agreements. President Bush withdrew the tariff policy less than two years later.3