US: Trump seeks to expand his power to impose tariffs
US President Donald Trump today vowed to right "calamitous" trade policies and sought to expand his power to impose tariffs, which he said would empower him to respond faster during trade wars.
Trump during his annual State of the Union address told Congress that Washington's aggressive trade negotiations with China would mean an end to its alleged "theft" of US jobs and wealth.
Trump urges Congress to pass Reciprocal Trade Act
'Theft of American jobs, wealth has come to an end'
"We're now making it clear to China that after years of targeting our industries, stealing our intellectual-property, the theft of American jobs and wealth has come to an end," Trump said.
"Therefore, we recently imposed tariffs on $250 billion of Chinese goods, and now our treasury is receiving billions of dollars a month from a country that never gave us a dime," he added.
I blame our leaders for allowing travesty to happen: Trump
Trump said, "I don't blame China for taking advantage of us, I blame our leaders and representatives for allowing this travesty to happen." He also urged the Congress to pass the Reciprocal Trade Act to handle the tariff issues with other countries also.
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RT Act, if passed, could affect bilateral trade with India
"I am also asking you to pass the United States Reciprocal Trade Act, so that if another country places an unfair tariff on an American product, we can charge them the exact same tariff on the same product that they sell to us," Trump said.
The United States Reciprocal Trade Act, if signed into law, could have consequences on bilateral trade with India.
President would have powers to impose tariff without Congressional approval
The proposed legislation would expand the WH's latitude to impose tariffs if other countries' tariffs or non-tariff barrier exceed US ones.
The legislation would require at least some negotiations with the other countries and for the WH to notify Congress, but the tariff wouldn't need lawmaker's approval.
The President has powers to impose tariff without Congressional approval, by citing national security as a reason.
RT Act likely to face an uphill fight in Congress
Trump has already used powers to impose tariffs on steel and aluminum imports.
The Reciprocal Trade Act is likely to face an uphill fight in Congress, where many lawmakers in both parties have opposed Trump's trade policies.
A bipartisan group of lawmakers introduced legislation to limit Trump's ability to use national security as a rationale for tariffs.
The business community is supporting the bill.