Can Trump Impose Tariffs on Day One? 🤔

TRADE NEWS

Indonesia Joins BRICS

Indonesia's recent inclusion in BRICS has significantly enhanced the bloc's economic and geopolitical influence. With Indonesia's $1.371-trillion GDP, the combined BRICS economy now surpasses $28.7 trillion, a 5% increase, exceeding the $27.7 trillion U.S. economy. This marks a symbolic shift in global economic dynamics.

Indonesia also contributes its 282.47 million population, increasing BRICS’ total population by 8% to 3.83 billion, representing 47% of the world's population. The Southeast Asian nation’s strategic location near the Strait of Malacca, a vital global shipping route, enhances BRICS’ geopolitical leverage. Additionally, Indonesia’s historical role in the Non-Aligned Movement reinforces the bloc’s claim as a representative of the Global South rather than a Russia-China-dominated entity.

BRICS’ landmass has also grown by 5.4%, now covering over 35.4 million square kilometers, further solidifying its global presence. Indonesia’s membership aligns with its multi-alignment strategy, as seen during its adept G20 presidency in 2022.

BRICS’ recent expansion to 10 full members reflects its growing ambition to counterbalance Western-dominated institutions. As discussions of further enlargement continue, countries like Malaysia, Nigeria, and Kazakhstan are exploring partnerships or full membership.

Indonesia’s accession highlights its global relevance and underscores BRICS’ evolving role in shaping the future of global trade and economics. The bloc now wields greater economic clout, population strength, and strategic influence, positioning itself as a formidable force in the international arena.

TOGETHER WITH 1440

Looking for unbiased, fact-based news? Join 1440 today.

Upgrade your news intake with 1440! Dive into a daily newsletter trusted by millions for its comprehensive, 5-minute snapshot of the world's happenings. We navigate through over 100 sources to bring you fact-based news on politics, business, and culture—minus the bias and absolutely free.

Subscribe to 1440 today.

VIDEO OF THE DAY

How Maker’s Mark Produces 34 Million Bottles Of Bourbon A Year

In a small Kentucky town, Maker’s Mark crafts renowned bourbon with iconic red wax bottles, selling over 3 million cases annually. The oak for barrels is scarce, threatening future bourbon production. Let’s dive into their distillery to explore solutions.

TRADE SNIPPETS

COSCO Shipping blacklisted by US over alleged military ties. The US Department of Defense has blacklisted China's COSCO Shipping, alleging links to the Chinese military. This action raises concerns about potential impacts on global trade and port operations.

Canada considers energy supply cut to US over proposed tariffs. In response to President-elect Donald Trump's threat of 25% tariffs on Canadian goods, Prime Minister Justin Trudeau stated that "everything is on the table," including potentially halting energy exports to the US.

US bans imports from 37 Chinese companies over forced labor allegations. The US has banned imports from 37 Chinese firms, including Huafu Fashion Co. and Zijin Mining Group, citing forced labor in Xinjiang's cotton industry.

Learn how to make AI work for you

AI won’t take your job, but a person using AI might. That’s why 800,000+ professionals read The Rundown AI – the free newsletter that keeps you updated on the latest AI news and teaches you how to use it in just 5 minutes a day.

Sign up to start learning.

TRADE NEWS

Can Trump Impose Tariffs on Day One ?

President-elect Trump has proposed sweeping tariffs, including a blanket 10–20% tariff on all imports, up to 100% on Chinese goods, and 25% on imports from Mexico and Canada. He suggests implementing some tariffs immediately. Can he do this? Potentially, yes.

The US Constitution grants Congress the power to impose taxes, including tariffs. However, Congress has delegated significant authority to the executive branch through trade laws, allowing presidents to impose tariffs without congressional approval. This unique executive power circumvents the checks and balances typically applied to economic policies, enabling swift action.

Two primary mechanisms exist for imposing tariffs. First, trade laws from the 1930s-70s permit tariffs to protect U.S. workers from unfair trade practices. These require investigations by the Department of Commerce or US Trade Representative and a public notice period, making immediate tariffs unlikely.

Second, the International Emergency Economic Powers Act (IEEPA) of 1977 allows the president to act swiftly in response to “extraordinary” threats. President Trump previously threatened IEEPA tariffs on Mexico in 2019, though legal questions remain about its scope. This expedited process could enable Trump to impose tariffs quickly, bypassing traditional reviews and public input.

In conclusion, while implementing tariffs on day one is challenging, the executive branch's authority under IEEPA offers a legal pathway for rapid action. The extent to which this approach could be used effectively and appropriately remains a subject of debate, particularly given its potential economic and diplomatic implications.

TRIVIA

LETS MEME

Was this email forwarded to you? Subscribe here for update