Editors at National Review Online explain why they oppose the outlines of a proposed bill to give President Trump more power over trade policy.
As of now, the U.S. Fair and Reciprocal Trade Act is purely imaginary. But we know from a leaked draft that the bill — commissioned by the president and drawn up by his administration — would do several things. It would allow the president to impose tariffs on foreign goods as he sees fit, effectively withdrawing the U.S. from the World Trade Organization. It would mark a breathtaking transfer of power from the legislative branch to the executive branch. It would surely cause turmoil in the global economy.
It is hard to imagine Congress, despite its habitual acquiescence to executive-branch abuses of power, passing a bill that completely cedes the authority to impose tariffs to the president — let alone this president. The steel tariffs President Trump has levied against Canada, the European Union, and others rely on an abuse of section 232 of the 1962 Trade Expansion Act, which gives the executive the authority to impose tariffs for national-security reasons. But congressional Republicans still believe in the value of free trade, and understand that there are better ways to punish abusive trade practices than a retreat into autarky.
Both this bill and the Trump administration’s broad approach to trade issues are predicated on the misconception that remaining party to the WTO is no longer worth it. But there is no better tool to discipline bad actors on the world stage than the WTO.
