trump

Food For Thought

Dave Davis Commentary, Policy, Uncategorized , , , ,

It took only a few moments after the Supreme Court’s long-awaited tariff decision for President Trump to strike back by imposing an across-the-board 10% tariff. Within 24 hours, he increased it to 15%. Under Section 122 of the Trade Act of 1974, the tariffs remain in effect for the next 150 days. At that point, the tariff authority will expire unless Congress acts. Not to worry, the administration will have completed the mandatory work to continue the tariffs under yet another statute.

The same affected importers and others are likely to sue to prevent implementation. Still, given how long it took to secure a favorable decision on the original statute used to justify Trump’s torrent of tariffs, the administration will remain one step ahead of relief.

As for getting a refund for the illegal tariffs collected, Judge Kavanaugh, in his dissent, said that’s messy. Litigating the refunds could take years, according to Treasury Secretary Scott Bessent.

Nice try, Supreme Court, but the courts are just too slow to keep up with those bright administration people. Trump’s beloved tariffs will remain, while importers will grow old waiting for their refunds.

According to the administration and its media supporters, the importer’s High Court victory is just a mirage. Nothing has really changed. Trump will keep your money and keep collecting in the future.

That’s one plotline for the future of the Trump tariff regime, but there might be another script. The stage for court challenges to the administration is the Court of International Trade (CIT). This court will hear the demands of Costco, FedEx, and many others for refunds.

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The Real Trump

Dave Davis Commentary, Policy, Uncategorized , , , ,

We finally have the Supreme Court tariff decision. Even though they took too long in a faster-moving world, it is as predicted. The Court ruled that all tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were illegal in a 6-to-3 decision. The majority acknowledged what the first article of our Constitution clearly states: that duties (tariffs), like all taxes, are the exclusive province of Congress.

Predictably, the President threw a hissy fit. His main ire fell on two of the justices he appointed, Neil Gorsuch and Amy Coney Barrett,, even going so far as saying their families are ashamed of them or should be. At the same time, he praised the three conservative judges who backed the tariffs, Clarence Thomas, Samuel Alito, and Brett Kavanaugh. The latter wrote the key dissenting opinion. He made three points: the statute gives unlimited tariff power, the linking tariff power to the ability to conduct foreign affairs, and refunding the money would be “messy.

All three justices claim to be Scalia originalists, meaning simply applying the original intent of the law. What is confusing about the original intent of the first article of the Constitution that gives the power of the purse, including duties, exclusively to Congress? The thinking behind this traces back through British history and law, and the framers’ intent is crystal clear. What part of “no taxation without representation” don’t they understand? The majority in Chief Justice’s opinion stated the obvious.

The contention that the President needs the power to impose a punishing tax on U.S. citizens to conduct foreign affairs would be news to the Founding Fathers. This idea is like a child demanding his way, or he’ll hurt himself. As two recent studies have shown, Americans, not foreigners, pay 90% of the tariffs.

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Twins In The Twin Cities

Dave Davis Uncategorized , , , ,

Donald Trump won the 2024 election on his promise to stop the mass migration across our southern Border. High-profile crimes highlighted that many bad people were among those entering the country. Stopping the flood and removing the bad actors from our country is a big part of Trump’s mandate. The Administration secured the Southern Border and then began rounding up bad actors.

In most places, especially in red states, local authorities worked with U.S. Immigration and Customs Enforcement (ICE) to remove those they apprehended. So far, so good. However, the scope of the deportations expanded significantly. A presidential advisor was said to demand 3,000 deportations a day. The short-order cook, or the dry-waller, who had been here for years without problems, suddenly became a target.

Not prepared for this wide net, we didn’t want to see our neighbors, employees, and people we depend on taken away. Fear spread. We wanted the bad people out, but not our neighbors with clean records.

Many places claimed Sanctuary City status and refused to work with federal authorities, even to get rid of criminals. Letting them back out on the street, rather than deporting them, is a questionable stance, but the deporting of law-abiding, but illegal migrants, changed perceptions. A Trump underwater issue, the expansion appalled most Americans.

At a time when the U.S. is facing declining population growth, this is terrible timing to kick out millions of working taxpayers. Regardless of the initial costs, most who have been here for years are now positive additions. We’ve educated many dreamers who were brought here as children by their parents. Why kick them out when they’re now paying off? Why adopt such an unpopular position? Whatever the initial costs, the security net, and education expenses are in the past, and the payoff is now and into the future. This action is bad. policy. Americans favor immigration:

So why has the Administration taken this tactic? It’s playing to its anti-immigration base. Presidential advisor Steven Miller is the voice of this base, with media support from the likes of Tucker Carlson, Laura Loomer, and Steve Bannon. Crossing the base can doom a political career. The committed turnout in primaries puts anyone who disagrees with them in a challenging position, allowing this faction to punch well above its weight. The result is a political Party saddled with a bad, unpopular policy.

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Trumpland

Dave Davis Commentary, Policy, Uncategorized , , , ,

President Trump has loudly demanded ownership of Greenland as a matter of crucial national defence. Highlighting Greenland’s role in Arctic trade routes and national defense, he drew a dire picture.

Our U.N. ambassador, Mike Waltz, made the administration’s case on several TV shows by claiming that, in the event of problems in the Arctic, the Island doesn’t even have an icebreaker—no wonder they need us.

To understand the situation, we need to know why the Arctic is becoming so important. This map should help:

With warming temperatures, two significant new trade routes are emerging. The Northern Sea Route, which mainly runs through Russian waters, and the Northwest Passage, which runs by Greenland, Canada, and the U.S. (Alaska). As I pointed out in my post, “What’s Trump Thinking,” The Former is of the utmost importance to China. A shorter route to Europe, accessible to Russian resources, is the future. That’s why China isn’t about to allow Russia to change alliances without a painful response.

The search for a Northwest Passage dates back centuries, driven by obvious commercial advantages. Now it’s happening. As with any critical trade route, it needs protection. It’s still the Arctic, so commercial and military vessels will need icebreaker support. As NATO allies, Denmark, Canada, and the U.S. should have no problem establishing bases and patrols as required.

Of course, Ambassador Waltz is correct in highlighting the need for Icebreakers. Still, you can’t look to the U.S. We have two or three ancient icebreakers that may or may not be available in a time of need. We’ve ordered a couple from Finland, hopefully for delivery in 2028. Presently, the Northwest Passage depends on Canada’s 18 capable ships, with even more modern ones on the way. With the increasing importance of icebreakers, note that Denmark has more than the U.S.:

With the safety of the Northwest Passage more dependent on Canada than the U.S., let’s look at Trump’s other military arguments for U.S. ownership of Greenland. We need the Island for the Golden Dome defence system, but that’s just an upgrade to the North American Aerospace Defense Command (NORAD), which includes bases across the frozen north of the U.S., Canada, and Greenland.

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Trump: Inept Colonialist?

Dave Davis Commentary, Policy, Uncategorized , , , ,

Shades of the British in India, we depose a Leader favorable to our enemies, leaving the existing government compliant to our rule. Trump seized and deposed Venezuela’s leader and set up a colonial relationship with the remainder of his government.

Facing an overwhelming force, those in charge of the nation surrendered control of their primary asset, oil, to the U.S. We will take the oil and market it. Whatever amount we decide to share with Venezuela must be used to purchase U.S.-made goods.

These terms sound like our colonial relationship with King George’s Britain. Control of our trade lay with the mother country. We could only buy from British manufacturers. Our Declaration of Independence leaves no doubt about what we thought of the situation. Now, Trump has taken on George III’s mantle.

At least past colonial Empires went after places that produced stuff that didn’t compete with their home products. Tobacco, indigo, sugar, and tea didn’t grow in Britain or France. These mercantilist nations made money by selling colonial produce and by monopolizing the sale of manufactured goods to their colonies.

Isn’t someone in the present administration aware that the U.S. is the world’s top oil producer? It’s as if, when England was the largest wool exporter, it deposed a foreign leader to expand his nation’s wool production. One could see eliminating a competitor, but Trump only talks about rapidly expanding Venezuela’s output. Even crazy George III could see the flaws in this policy.

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