Editorial Spotlight: When It Comes to Trade, What Are the US President’s Powers?

There are several rumors of what we have to expect from US trade policy starting in January
US President-elect Donald Trump has mentioned that he wants to impose a 35% tariff on Chinese imports, re-negotiate or pull out of NAFTA, and withdraw from TPP. This week, we take a look at the powers of the US president when it comes to trade agreements and tariffs. What is possible, impossible?

• Impose a tariff on imports: Yes, but only for 150 days and only as much as 15%
  • Source: Trade Act of 1974, Section 122
  • *unless the government in question “engages in discriminatory or other acts or policies” or “provides subsidies,” then the President may impose duties “for such time as he deems appropriate”
    • Source: Trade Act of 1974, Section 301
• Renegotiate NAFTA: Yes, with the agreement of other parties (and Canada and Mexico have indicated their willingness to listen)
• Pull out of NAFTA: Yes
  • Source: NAFTA, Article 2205                        
• Withdraw from TPP: Yes
  • Source: TPP, Article 30.5

Compliments of the Atlantic Council