In recent months, the US has significantly changed the tariffs it imposes on foreign goods multiple times in quick succession. The resulting historic levels of uncertainty have reverberated immediately in the stock and bond markets. In the coming months, the uncertainty threatens to drive up inflation and slow economic growth.
The Constitution vests the taxing authority in Congress based on the principle that a power as great as the authority to tax, including taxes on imports, should be exercised by the branch of government closest to the people. Article I, Section 8 grants Congress the power “to regulate Commerce with foreign Nations” and to “lay and collect Taxes, Duties, Imposts and Excises.” In the last century, however, Congress has increasingly delegated its authority to the president.
There is growing bipartisan interest in Congress reasserting some of its constitutional authority to ensure that the American people, acting through their representatives in Congress, have a voice in US tariff policy. Proposals also aim to ensure that American tariffs are predictable and based on sound evidence and rationale.
We do not have a congressional rating of this issue because much of the growth in bipartisan interest occurred well after we began meeting with congressional offices in early January. Many of the offices have suggested this issue since we first met with them. Several of the members of the congressional bipartisan groups with whom we’re working have co-sponsored recently introduced tariff legislation and have requested that we ask whether you think this is an issue we should work on together.
Proposals include:
