NTU urges all Senators to vote “YES” on S.J.Res. 88, a resolution from Senators Ron Wyden (D-OR) and Rand Paul (R-KY) to terminate the national emergency declared to impose nonreciprocal duties on imports from across the globe.
These tariffs were imposed based on the allegation that trade deficits constitute an unusual and extraordinary threat to the national security and economy of the United States. However, trade deficits are simply the mirror image of capital surpluses. National Taxpayers Union recently released a statement from more than 450 economists, including former Senator Phil Gramm (R-TX), nine Nobel laureates, and economists from every administration from Jimmy Carter and Ronald Reagan to Donald Trump (first term) and Joe Biden. They wrote:
Trade deficits primarily reflect underlying macroeconomic factors such as the U.S. savings rate and the desire of our trading partners to invest in the United States. The United States has experienced trade deficits for 49 consecutive years, yet, during this period, real GDP, national wealth, and median incomes have all grown substantially.
In technical terms, the U.S. current account deficit is offset by a surplus in the capital account. There is no inherent threat to our economy if our trading partners invest in U.S. companies or buy Treasury bonds instead of purchasing American-made exports. In fact, it is not uncommon for the U.S. trade deficit to increase when the economy is growing and to decrease when it is not.
According to the Congressional Budget Office, if left in place, all the tariffs implemented since January 6 will cost Americans $3.3 trillion in import duties over the next 10 years, the equivalent of $25,000 per household. An April vote on a similar resolution was defeated following a tie vote because two senators were unable to make the vote. Tariffs imposed based on these so-called emergencies are harming Americans on an ongoing basis. The Senate should terminate them.
Roll call votes on this resolution will be included in NTU’s annual Rating of Congress and a “YES” vote will be considered the pro-taxpayer position.
If you have any questions, please contact Director of NTU’s Free Trade Initiative Bryan Riley at briley@ntu.org
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