“…too much whiskey under the wrong circumstances will make you drunk as a goat” – Sen. John Kennedy
The Trump administration used a declaration of national emergency to implement tariffs.
Congress has passed multiple laws explicitly giving the president discretion over tariffs:
- Trade Expansion Act (1962, Section 232): Allows the president to impose tariffs if imports threaten national security.
- Trade Act of 1974 (Section 301): Gives the president authority to impose tariffs in response to unfair trade practices.
- International Emergency Economic Powers Act (IEEPA, 1977): Enables tariffs during national emergencies.
- Tariff Act of 1930 (Section 336): Allows the president to adjust tariffs based on differences in production costs.
| Feature | Tax | Tariff |
|---|---|---|
| Scope | Applies to domestic individuals and businesses | Applies to international trade (imports/exports) |
| Purpose | Raise government revenue, redistribute wealth, fund public services | Protect domestic industries, regulate foreign trade, or generate revenue |
| Types | Income tax, corporate tax, VAT, sales tax, excise duty, etc. | Import duties, export duties, retaliatory tariffs, etc. |
| Who Pays? | Individuals, corporations, and consumers | Importers/exporters (cost often passed to consumers) |
