Judd Legum
1.

FACT: Trump’s new tariffs are just as illegal as his old tariffs

But numerous media outlets are spreading false information about the law — and Trump is benefiting.

Let's break it down.
Feb 24 at 1:45pmWeb
Show threadJudd LegumFeb 24
2. Several prominent outlets falsely reported that the Trade Act of 1974 gives Trump the legal authority to impose temporary tariffs of up to 15% in response to *trade deficits*

THIS IS NOT TRUE
Show threadJudd LegumFeb 24
3. Section 122 of the Trade Act gives the president the authority to temporarily impose tariffs in response to “large and serious United States balance-of-payments deficits,” not trade deficits. The United States does not have a balance-of-payments deficit, much less a large and serious one.

https://popular.info/p/trumps-new-tariffs-are-just-as-illegal
Trump’s new tariffs are just as illegal as his old tariffs

Numerous media outlets are spreading false information about the law — and Trump is benefiting.

Popular Information
Show threadJudd LegumFeb 24
4. Balance-of-trade and balance-of-payments are two distinct concepts. Balance-of-trade looks at the goods and services sold to other countries and subtracts the goods and services imported. Last year the US had a trade deficit of about $900 billion.
Show threadJudd LegumFeb 24
5. Balance-of-payments goes beyond goods and services and covers all the money flows between countries. There are large inflows of foreign capital into U.S. Treasury bonds, stocks, and other financial instruments. That is why, despite a large trade deficit, the balance-of-payments deficit is ZERO.
Show threadJudd LegumFeb 24
6. Since there is no balance-of-payments deficit, Trump has no authority under the law to impose a tariff under the Trade Act.

(The Trade Act of 1974 mentions balance-of-trade but only authorizes tariff *reductions* in response.)

https://popular.info/p/trumps-new-tariffs-are-just-as-illegal
Trump’s new tariffs are just as illegal as his old tariffs

Numerous media outlets are spreading false information about the law — and Trump is benefiting.

Popular Information
Show threadJudd LegumFeb 24
7. Other media outlets suggested that the Trade Act gives Trump broad authority to impose global tariffs of up to 15% for 150 days, without mentioning the limitations.
Show threadJudd LegumFeb 24
8. This reporting has created the false impression that the temporary 15% measure is on firmer legal footing than the tariffs that were just struck down by the Supreme Court. In reality, the new tariffs are just as illegal as the ones they replaced.

https://popular.info/p/trumps-new-tariffs-are-just-as-illegal
Trump’s new tariffs are just as illegal as his old tariffs

Numerous media outlets are spreading false information about the law — and Trump is benefiting.

Popular Information
Show threadJudd LegumFeb 24
9. For more reporting that ignores the spin and looks at the facts, subscribe to Popular Information.

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