Except here in the US we’re so proud of our lower end wines that I can get Bourgogne from half way around the world (that’s better in most cases) for less than cellar door prices over here.
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I like how the argument against tariffs is that the three-tier system is already effectively an even larger tariff.
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If there’s already an agreement that tariffs on wine will not be increased can he backtrack on that without Congress?
No one, on any platform, has adequately answered that question yet.
I think folks are thinking that he will be able to do what he wants to do, but I’m not a lawyer, and don’t know.
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I can’t find it now but I believe the last thing I read was that the “agreement” to stand down on the wine tariffs related to the Airbus dispute until 2026 was merely an Executive Order, not any kind of formal bilateral agreement. If that’s accurate, then neither Congress nor the WTO would have a say if a President decided to rescind that order before it expired under its own terms.
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The executive branch controls tariffs. Congress doesn’t get involved.
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The Constitution gives Congress the power to impose tariffs, (Art 1, Sec. 8). Congress used to do this. But since the mid-1930s by legislation has given the President authority to impose tariffs in the interest of national security, which this the authority on which Trump (and other presidents) have imposed tariffs.
So, while Congress has the power to impose tariffs, or limit the President’s power to impose tariffs by new legislation that limits existing authority, practically it is the President who has substantial authority to raise (or lower) tariffs.
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We’re so lucky to live in these interesting times! Oops, forgot I’m not a lawyer.
Andrew, do you know of any occasions (say, over the past 50 years) where Congress has passed legislation and the President signed it, overriding a President’s tariff?
Doing a quick search I came across this article nicely highlighting the impracticality:
"Asked by reporters if the chamber he leads would introduce a bill to scale back the president’s power to levy tariffs, House Speaker Paul Ryan brushed aside the idea as an impossibility. ‘You would have to pass a law saying “don’t raise those tariffs” and the president would have to sign that law,’ he said. “That’s not going to happen.”
That would come as a surprise to the drafters of the Constitution, who created a mechanism for exactly such a scenario. Trump doesn’t actually have to sign a law for it to take effect. A presidential veto can be overridden by a two-thirds supermajority in both chambers. Look it up, it’s true! But Ryan is helpfully demonstrating why many aspects of the Constitution do not work as designed, or at all."
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It will be interesting when every single imported good is a matter of national security.
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I’ve long thought that pretty much has been the case. Economic Imperialism. We weren’t the first, of course, but we spend a ton trying to keep the seas safe for shipping. I’m sure there are plenty of other examples of military and/or national security spending related, at least in part, to our economy.
And, of course, history is full of examples of economic upheaval leading to conflict, even war.
I don’t - I was just trying to answer the question about authority. I think in the current environment Congress would neither overrule a Trump imposed tariff nor narrow presidential authority to impose tariffs.
What might happen is backchannel pressure from members of Congress when the inevitable retaliatory tariffs start hitting their districts/states. That’s why Europe imposed tariffs on bourbon - from Mitch McConnels home state.
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100%.
And yes it’s constitutionally Congress that has the authority, but as you note they have ceded that role to the executive.
I actually expect a very convoluted implementation of tariffs with “winners and losers” designed to inflict targeted pain.
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This.
So much of this.
I’ll add: with lots of unintended consequences.
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And more intended consequences
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Absolutely. It will be that way with everything.
Tariff news, but between France/China:
Luckily this is one case where England isn’t like the continent (not that you implied it was, Dan). While it’s not as great as the access directly in the US, I get decent access to a number of great US producers, including Patricia Green, Goodfellow, Brickhouse, Walter Scott, Kelley Fox (though, that’s new), and a bunch of other excellent Oregon and California producers, not just the “big names”. It’s pretty great.
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