The recent midterm elections delivered a decisive rebuke to the president's unpopular policies, including tariffs, which 66 percent of voters in 45 states believed had harmed the national economy. With the incoming Congress poised to address these concerns, trade policy reform is at the top of the agenda. The Trump administration's indiscriminate use of tariffs, particularly against allies like Canada, has strained international relations and created economic challenges for both businesses and consumers.
Congress is exploring several ways to rein in the president's trade powers, focusing on two key statutes: Section 232 of the Trade Expansion Act of 1962 and Section 301 of the Trade Act of 1974. These measures have allowed the president to impose tariffs without sufficient congressional oversight. Proposed reforms include requiring congressional approval for tariffs before they are implemented, narrowing the president's discretion in tariff actions, and improving transparency in the process.
One approach to limiting executive abuse is the joint resolution of approval, which would require Congress to vote on proposed tariff actions before they are taken. Bills like the Bicameral Congressional Trade Authority Act and the Trade Review Act have proposed such measures, aiming to ensure thoughtful deliberation before tariffs are imposed. Additionally, shifting investigative powers from the Department of Commerce to the Department of Defense for Section 232 and to an independent agency for Section 301 could help ensure that tariffs are based on legitimate concerns rather than political motivations.
Congress is also considering ways to improve transparency and procedural guardrails, such as subjecting Section 232 actions to judicial review and requiring the publication of reports used to justify tariffs. The process for granting exclusions from tariffs is another area ripe for reform, as the current system has been criticized for its lack of clarity and potential for abuse. By addressing these issues, Congress can help repair damaged alliances and reduce the economic harm caused by tariffs.