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Senate Republicans Warn Against Trump’s Mexico Tariffs

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  • A group of Senate Republicans came out against President Donald Trump’s proposed tariffs on all Mexican goods following a closed-door meeting with administration officials Tuesday.
  • The Republicans expressed concern over the long-term economic impacts of the tariffs, which are set to go into effect June 10.
  • Speaking at a press conference in London, Trump said that the Republicans would be “foolish” to try to stop his tariffs.

Senate Republicans Go Against Trump

A group of Republican senators said Tuesday that they opposed President Donald Trump’s sweeping tariffs on all Mexican goods.

Last week, Trump announced in a tweet that the U.S. will impose a five percent tariff on all Mexican imports starting June 10, in order to put pressure on Mexico to reduce the flow of illegal immigrants coming into the country.

The White House later said in a statement the administration will increase the tariffs by another 5 percent every month, until they reach 25 percent in October, at which point they will “permanently remain at the 25 percent level unless and until Mexico substantially stops the illegal inflow of aliens coming through its territory.”

While Trump’s party has generally backed his immigration policies, numerous Republican senators made the tariffs a point of departure following a closed-door meeting with administration officials on Capitol Hill.

“There is not much support for tariffs in my conference, that’s for sure,” Senate Majority Leader Mitch McConnell (R-KY) told reporters after the meeting. “Our hope is that the tariffs will be avoided, and we will not have to answer any hypotheticals.”

Other senators who attended the meeting also expressed their discontent to reporters, like Sen. John Kennedy (R-LA), who called the tariffs “a mistake,” and Sen. Ted Cruz (R-TX), who told reporters, “There’s no reason for Texas farmers and ranchers and manufacturers and small businesses to pay the price of massive new taxes.”

Other Republican senators warned that they would try to block the tariffs, with some even arguing that they could get enough support among Republicans to get a veto-proof majority.

“The administration ought to be concerned about another vote of disapproval on another national emergency act, this time trying to implement tariffs,” Sen. Ron Johnson (R-WI) told reporters. “Tariffs are not real popular in the Republican Conference,”

Other Republicans backed this claim, like Senators Rand Paul (R-KY) and Kevin Cramer (R-ND).

Trump in London

The senators spoke out against the tariffs just a few hours after Trump told reporters in London that he had enough Republican support.

When asked by a reporter if he thought Republicans would block the tariffs, Trump said: “No, I don’t think they will do that, I think if they do, it’s foolish.”

To that point, there certainly are key Senate Republicans who have come out to back Trump.

In a tweet, Sen. Marco Rubio (R-FL) wrote that the president has “broad authority to control transactions with other nations if there is an unusual & extraordinary threat.”

Others agreed with Rubio’s sentiment. “I think Mexico could help us solve the crisis down at the border,” said Sen. Thom Tillis (R-NC). “What’s the tax on handling 80,000 additional illegal immigrants coming across the border, housing them, adjudicating them? You’ve got to look at the total cost of the prices.”

Economic Implications

While Trump definitely has some support, experts have still described this as one of the biggest rebukes from Republicans during his time in office, which raises the question: why are Republicans so against the tariffs?

It all comes down to the economic impact.

Trump says the tariffs are a punishment for Mexico, but most economists say that the costs of the tariff will largely fall on U.S. businesses and consumers. This is due to the fact that tariffs are paid by companies that import products, and when U.S. businesses are required to pay the tax, that extra cost is then passed to consumers.

This economic concept is broadly supported by economists and experts from different schools of thought and does not fall into a category of liberal versus conservative economic theory.

“US tariffs are taxes on American households and businesses, so imposing them will always be an act of self-destruction,” Dan Ikenson, who leads trade studies at the conservative Cato Institute think tank, told Vox News.

“Trump may believe he can dictate demands because the smaller Mexican economy is more dependent on the US economy than vice versa, but make no mistake: Both economies would be hurt significantly by the tariff war being threatened.”

Additionally, economists also agree that because tariffs function like a regressive tax, the negative impacts are more likely to hit lower-income communities.

Besides consumers, the two biggest business sectors that will be hit are the auto industry and the agriculture sector. “Motor vehicles and motor vehicle parts accounted for one-third of the value of all US imports from Mexico, and much of that cross-border trade was in unfinished product,” said Ikenson.

“In other words, the factory floor spans the US-Mexican border, so imposing tariffs is akin to erecting a concrete wall through the middle of that factory.”

On Tuesday, Toyota Motor Corp told Reuters that the tariffs on Mexico could cost its major suppliers $1 billion. The tariffs will also not only create higher costs but also cause job losses as well.

According to a new report from the Perryman Group, an economic research firm, job losses would amount to nearly 406,000, and “the proposed tariffs would lead to an increase in direct costs of about $28.1 billion each year.”

Others also worry that the new tariffs will undermine the ongoing negotiations of the U.S.-Mexico-Canada Agreement (USMCA), which is the treaty that Trump intends to replace the North American Free Trade Agreement (NAFTA) with.

What Can Mexico Do?

While Trump remains adamant that he will implement the tariffs, Mexican officials remain more optimistic.

Mexico’s foreign minister, Marcelo Ebrard, is set to meet with Vice President Mike Pence in Washington to discuss the tariffs Wednesday, and Mexican authorities have said they are willing to cooperate but have pushed for talks rather than economic retaliation.

However, the question that remains is: how much can Mexico really do to stop the migrant flows? According to the Washington Post, Mexico has dramatically stepped up immigration enforcement recently.

The country has nearly tripled its monthly deportations since the beginning of 2019. Last month alone, they apprehended more than 22,000 unauthorized migrants, marking the highest monthly number in Mexicos history.

However, Mexico largely lacks resources to deal with the influx of migrants from Central America that travel to the country with hopes of getting asylum in the U.S. Mexico uses up a lot of its police and military resources combatting organized-crime groups and their immigration authorities are entirely overwhelmed.

As of now, the Trump administration has not specifically said what Mexico can do to reverse the tariffs.

See what others are saying: (The Washington Post) (Vox) (Fox News)

Politics

Jan. 6 Committee Prepares Criminal Charges Against Steve Bannon for Ignoring Subpoena

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The move comes after former President Trump told several of his previous aides not to cooperate with the committee’s investigation into the insurrection.


Bannon Refuses to Comply With Subpoena

The House committee investigating the Jan. 6 insurrection announced Thursday that it is seeking to hold former White House advisor Steve Bannon in criminal contempt for refusing to comply with a subpoena.

The decision marks a significant escalation in the panel’s efforts to force officials under former President Donald Trump’s administration to comply with its probe amid Trump’s growing efforts to obstruct the inquiry.

In recent weeks, the former president has launched a number of attempts to block the panel from getting key documents, testimonies, and other evidence requested by the committee that he claims are protected by executive privilege.

Notably, some of those assertions have been shut down. On Friday, President Joe Biden rejected Trump’s effort to withhold documents relating to the insurrection.

Still, Trump has also directed former officials in his administration not to comply with subpoenas or cooperate with the committee. 

That demand came after the panel issued subpoenas ordering depositions from Bannon and three other former officials: Chief of Staff Mark Meadows, Deputy Chief of Staff Dan Scavino, and Pentagon Chief of Staff Kash Patel.

After Trump issued his demand, Bannon’s lawyer announced that he would not obey the subpoena until the panel reached an agreement with Trump or a court ruled on the executive privilege matter.

Many legal experts have questioned whether Bannon, who left the White House in 2017, can claim executive privilege for something that happened when he was not working for the executive.

Panel Intensifies Compliance Efforts

The Thursday decision from the committee is significant because it will likely set up a legal battle and test how much authority the committee can and will exercise in requiring compliance.

It also sets an important precedent for those who have been subpoenaed. While Bannon is the first former official to openly defy the committee, there have been reports that others plan to do the same. 

The panel previously said Patel and Meadows were “engaging” with investigators, but on Thursday, several outlets reported that the two — who were supposed to appear before the body on Thursday and Friday respectively —  are now expected to be given an extension or continuance.

Sources told reporters that Scavino, who was also asked to testify Friday, has had his deposition postponed because service of his subpoena was delayed.

As far as what happens next for Bannon, the committee will vote to adopt the contempt report next week. Once that is complete, the matter will go before the House for a full vote.  

Assuming the Democratic-held House approves the contempt charge, it will then get referred to the U.S. Attorney for the District of Columbia to bring the matter before a grand jury.

See what others are saying: (CNN) (The Washington Post) (Bloomberg)

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Politics

Senate Votes To Extend Debt Ceiling Until December

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The move adds another deadline to Dec. 3, which is also when the federal government is set to shut down unless Congress approves new spending.


Debt Ceiling Raised Temporarily

The Senate voted on Thursday to extend the debt ceiling until December, temporarily averting a fiscal catastrophe.

The move, which followed weeks of stalemate due to Republican objections, came after Senate Minority Leader Mitch McConnell (R-Ky.) partially backed down from his blockade and offered a short-term proposal.

After much whipping of votes, 11 Republicans joined Democrats to break the legislative filibuster and move to final approval of the measure. The bill ultimately passed in a vote of 50-48 without any Republican support.

The legislation will now head to the House, where Majority Leader Steny Hoyer (D-Md.) said members would be called back from their current recess for a vote on Tuesday. 

The White House said President Joe Biden would sign the measure, but urged Congress to pass a longer extension.

“We cannot allow partisan politics to hold our economy hostage, and we can’t allow the routine process of paying our bills to turn into a confidence-shaking political showdown every two years or every two months,’’ White House Press Secretary Jen Psaki said in a statement.

Under the current bill, the nation’s borrowing limit will be increased by $480 billion, which the Treasury Department said will cover federal borrowing until around Dec. 3.

The agency had previously warned that it would run out of money by Oct. 18 if Congress failed to act. Such a move would have a chilling impact on the economy, forcing the U.S. to default on its debts and potentially plunging the country into a recession. 

Major Hurdles Remain

While the legislation extending the ceiling will certainly offer temporary relief, it sets up another perilous deadline for the first Friday in December, when government funding is also set to expire if Congress does not approve another spending bill.

Regardless of the new deadline, many of the same hurdles lawmakers faced the first time around remain. 

Democrats are still struggling to hammer out the final details of Biden’s $3.5 trillion spending agenda, which Republicans have strongly opposed.

Notably, Democratic leaders previously said they could pass the bill through budget reconciliation, which would allow them to approve the measure with 50 votes and no Republican support.

Such a move would require all 50 Senators, but intraparty disputes remain over objections brought by Joe Manchin (D-W.V.) and Kyrsten Sinema (D-Az.), who have been stalling the process for months.

Although disagreements over reconciliation are ongoing among Democrats, McConnell has insisted the party use the obscure procedural process to raise the debt limit. Democrats, however, have balked at the idea, arguing that tying the debt ceiling to reconciliation would set a dangerous precedent.

Despite Republican efforts to connect the limit to Biden’s economic agenda, raising the ceiling is not the same as adopting new spending. Rather, the limit is increased to pay off spending that has already been authorized by previous sessions of Congress and past administrations.

In fact, much of the current debt stems from policies passed by Republicans during the Trump administration, including the 2017 tax overhaul. 

As a result, while Democrats have signaled they may make concessions to Manchin and Sinema, they strongly believe that Republicans must join them to increase the debt ceiling to fund projects their party supported. 

It is currently unclear when or how the ongoing stalemate will be resolved, or how either party will overcome their fervent objections.

See what others are saying: (The New York Times) (NPR) (The Washington Post)

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California Makes Universal Voting by Mail Permanent

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California is now the eighth state to make universal mail-in ballots permanent after it temporarily adopted the policy for elections held amid the COVID-19 pandemic. 


CA Approves Universal Voting by Mail

California Gov. Gavin Newsom (D) signed a bill Monday requiring every registered voter in the state to be mailed a ballot at least 29 days before an election, whether they request it or not.

Assembly Bill 37 makes permanent a practice that was temporarily adopted for elections during the COVID-19 pandemic. The law, which officially takes effect in January, also extends the time mail ballots have to arrive at elections offices from three days to seven days after an election. Voters can still choose to cast their vote in person if they prefer.

Supporters of the policy have cheered the move, arguing that proactively sending ballots to registered voters increases turnout.

“Data shows that sending everyone a ballot in the mail provides voters access. And when voters get ballots in the mail, they vote,” the bill’s author, Assemblyman Marc Berman (D-Palo Alto), said during a Senate committee hearing in July.

Meanwhile opponents — mostly Republicans — have long cast doubts about the safety of mail-in voting, despite a lack of evidence to support their claims that it leads to widespread voter fraud. That strategy, however, has also faced notable pushback from some that a lot of Republicans who say it can actually hurt GOP turnout.

Others May Follow

The new legislation probably isn’t too surprising for California, where over 50% of votes cast in general elections have been through mail ballots since 2012, according to The Sacramento Bee. Now, many believe California will be followed by similar legislation from Democrats across the country as more Republican leaders move forward with elections bills that significantly limit voting access.

Newsome signed 10 other measures Monday changing election and campaign procedures, including a bill that would require anyone advocating for or against a candidate to stand farther away from a polling place. Another bill increases penalties for candidates who use campaign funds for personal expenses while a third measure increases reporting requirements for limited liability corporations that engage in campaign activity.

“As states across our country continue to enact undemocratic voter suppression laws, California is increasing voter access, expanding voting options and bolstering elections integrity and transparency,” Newsom said in a statement.

“Last year we took unprecedented steps to ensure all voters had the opportunity to cast a ballot during the pandemic and today we are making those measures permanent after record-breaking participation in the 2020 presidential election.”

The news regarding California came just in time for National Voter Registration day today, giving Americans another reminder to make sure they’re registered in their states. For more information on how to register, visit Vote.gov or any of the other resources linked below.

See what others are saying: (The Hill) (Los Angeles Times) (The Sacramento Bee)

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