Intro:
Tariffs, a common word only whispered around. Tariffs may be a common household discussion today, but they have a long history. Originally used to fund the new government and boost domestic industries, they have now mainly affected domestic industries negatively and some think they may have negatively impacted the economy.
History:
Tariffs have existed for centuries, used by different empires and nations as a primary tool for state revenue and protectionism. Most notably, in 1789, signed by the United States’ first president, George Washington. It was formed almost immediately after the nation’s founding, being known as the Tariff Act of 1789. It was one of the first major pieces of legislation passed in the United States after its ratification. Furthermore, it specifically levied a 50¢ per ton duty on goods imported by foreign ships, a 30¢ per ton duty on American-made ships owned by foreign entities, and a 6¢ per ton duty on American-owned vessels.
Present Day:
Tariffs today, however, are a controversial topic with the people split in two. Many people around the country, such as the consumers, fear that everyday essentials will double or even triple in price, such as standard food. Another party facing challenges is everyday small businesses, whom many rely on imported goods from other countries such as China as their primary source for imported goods, with other top partners including Mexico and Canada. Tariffs directly affect all imports from these countries, with them doubling or tripling the price depending on the country. This makes everyday goods, like coffee, toys, clothing, and electronics become more expensive.
Verdict and Conclusion:
Last Friday, February 20th, the Supreme Court came down with their decision rocking the global economy. In a vote of 6-3, the Supreme Court brought a defeat to President Trump’s tariff plan. According to the court, Trump exceeded his authority and imposed unlawful tariffs. “Our task today is to decide only whether the power to “regulate … importation,” as granted to the president in IEEPA, embraces the power to impose tariffs. It does not,” according to Chief Justice John Robert.
For right now, the Administration has ordered Customs and Border Protection (CBP) to stop collecting the invalid tariffs. Trump said he will impose a global 10% tariff as a way to combat this, keeping Americans, but also the global economy, in limbo.
