“Full economic effects of shockingly high” retaliatory “duties announced on Wednesday by President Donald Trump remain unclear, because consumer behavior often changes in response to tax or customs rates. But assuming that Americans will continue to buy as many imported goods as last year, last year, The plan (Trump) would be tantamount to an increase in tax by USD 880 billion per year, which will be paid – as Trump maintains – by foreigners, but by American entrepreneurs and consumers” – we read in the pages of” Washington Post “.
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It equals 2.9 percent. GDP – noted the author of the article Max Boot. According to him, it will be the highest tax increase from 1942.
The newspaper reminds that in the 1930s, the US Congress began to transfer a significant part of the President's competence to establish customs rates in crisis cases. “However, as in many other areas, Trump abuses executive power, going beyond the critical point” – we read in the article.
The author was in favor of regaining his rights in this matter. Only Congress can raise taxes and only he should be able to raise duties, which “are simply taxes under a different name” – he noted.
On Wednesday, the American Senate adopted a resolution aimed at abolishing customs duties on Canada. It was adopted thanks to the Rebellion of Four Republicans, but it probably will not lead to Trump's decision.
The resolution passed by votes 51 to 48, because the Democrats were joined by four Republicans: Susan Collins, Lisa Murkowski, Rand Paul and Mitch McConnell. Paul emphasized that “duties are a huge mistake, they do not work, lead to higher prices, are tax and are bad for the economy.”
Read also: Russia avoided Trump's duties, but it will get a ricochet. Oil was not so cheap for a long time
“The mystery of Donald Trump came to light: the duties are a tax – only (imposed on) American consumers,” said journalist Lawrence O'Donnell on MSNBC television, a critic of the president. He noted that the announcement of customs duties has been breaking the promise of not lodging taxes in any form. He also assessed that the CLAME announced on Wednesday was “the biggest tax increase in history”.
“Customs is a tax” – the daily “Wall Street Journal” also struck.
