Trump's Tariffs Undermine International Trade Law and US Global Standing

Raj Bhala, a renowned University of Kansas law professor, has starkly criticized President Donald Trump's use of tariffs, claiming it is destroying international trade law and harming the US economy, military alliances, and global political influence. Bhala's argument centers on the administration's "America First" unilateral trade measures, which he believes equate to "xenophobic autarky," or the pursuit of economic self-sufficiency through hostility towards foreign people or goods.

Key Takeaways:

• The Trump administration's tariffs against over 100 countries violate international trade law and undermine the US economy, military alliances, and global standing.
• The administration's approach to trade is characterized by "xenophobic autarky," where economic self-sufficiency is pursued through hostility towards foreign people or goods.
• The use of tariffs under the 1977 International Emergency Economic Powers Act and the Trade Expansion Act of 1962 has led to the imposition of reciprocity tariffs of at least 10% and industry-specific tariffs of over 25%.
• The US has raised its Most Favored Nation tariff rate to its highest level since the Great Depression, surging from 2.3% to 15.2% in a move that breaks the 1947 General Agreement on Tariffs and Trade (GATT).
• The Trump administration's tariff policies have led to a "devilish global trade war" and erode the US' economic and political soft power, as well as its hard power military alliances.
• The administration's reasoning for setting fire to international trade law ranges from enhancing national security to reducing trade deficits, but are deemed "reasonable arguments against each of those explanations."
• Bhala's analysis is nonpartisan, and he does not assess trade policy based on the platform of political parties or disposition of political leaders.
• Kansas' economy and job market suffer from the administration's policies, particularly in the automobile and aerospace industries, where tariffs can lead to reduced competitiveness and potential job losses.

Statistics:

• The US has imposed tariffs against over 100 countries since 2018.
• The 1977 International Emergency Economic Powers Act and the Trade Expansion Act of 1962 have been used to impose reciprocity tariffs of at least 10% and industry-specific tariffs of over 25%.
• The US has raised its Most Favored Nation tariff rate to 15.2%, its highest level since the Great Depression.
• The imposition of tariffs can lead to a 1,000 increase in the price of an electric vehicle (EV) battery made in De Soto, Kansas.

Sources:

• (Tim Carpenter/Kansas Reflector)
• Raj Bhala, "Xenophobic Autarky: A Devastating Concept for Global Trade," University of Texas International Law Journal (published 2022, exact date not specified)
• Raj Bhala, "Maximalist Tariffs: A Recipe for Global Trade Disaster," University of Texas International Law Journal (published 2022, exact date not specified)
• Bhala's presentation at the University of Kansas (exact date not specified)