Free Republic

A sweeping new analysis of tariff policy spanning 150 years suggests that the economic establishment may have fundamentally misunderstood how tariffs affect prices and employment, a finding with profound implications for understanding President Donald Trump’s trade policy and the proper response by the Federal Reserve. Researchers at the Federal Reserve Bank of San Francisco examined major tariff changes from 1870 through 2020 across the United States, the United Kingdom, and France. Their conclusion challenges the conventional wisdom that dominated economic policy debates in recent years: when countries raise tariffs, prices actually fall, not rise. “We find that a tariff hike...

US President Donald Trump has signed an executive order allowing a range of food products, including coffee, bananas and beef, to escape his sweeping tariffs. The move comes as his administration faces mounting pressure over rising prices. While Trump previously downplayed concerns about the cost of living, he has focused on the issue since his Republican Party's poor performance in last week's elections. The dozens of products included on the White House's list of exemptions range from avocados and tomatoes to coconuts and mangoes. These goods, the Trump administration said on Friday, cannot be produced in sufficient quantities domestically. Trump...

The Trump administration on Thursday said import taxes on coffee and bananas will be lowered as part of trade deals with four Latin American countries. The agreements with Argentina, Guatemala, El Salvador and Ecuador come as US President Donald Trump faces scrutiny over his handling of the economy and concerns about affordability. As part of an initial framework, a reciprocal tariff of 10% will stay on goods from Guatemala, Argentina and El Salvador, as will a 15% rax on imports from Ecuador into the US. But the deals will exempt products that cannot be produced in the US "in sufficient...

The U.S. and Switzerland are getting close to signing a trade deal to lower tariffs of 39% that President Donald Trump slapped on the country in August. The president confirmed on Monday that White House officials were “working on a deal to get the tariffs a little lower.” “I haven’t set any number, but we’re going to be working on something to help Switzerland,” he told reporters in the Oval Office. “We hit Switzerland very hard. But we want Switzerland to remain successful,” he added, saying the country had been a “very good ally.” The tariff on Swiss exports could...

Executives at Ford Motor Company are praising President Donald Trump’s expanded auto tariffs, saying such duties will ensure that manufacturing in the United States is no longer a disadvantage for American companies.Last month, Trump announced a 25% tariff on imports of medium and heavy-duty trucks and truck parts, such as large pick-up trucks, moving trucks, cargo trucks, dump trucks, and tractors for eighteen-wheelers.In a recent earnings call, Ford CEO Jim Farley thanked Trump for the newly announced tariffs on foreign cars and car parts.“I’d like to thank President Trump and his team for the recent tariff policy developments, which are...

President Donald Trump said on Monday that the United States faces an economic and national security catastrophe if the Supreme Court nullifies his use of an emergency powers statute to place tariffs on most nations. Trump also said his administration is looking into $2,000 stipends to lower- and middle-income Americans through tariff dividends, as well as paying off the national debt. “All money left over from the $2000 payments made to low and middle income USA Citizens, from the massive Tariff Income pouring into our Country from foreign countries, which will be substantial, will be used to SUBSTANTIALLY PAY DOWN...

Summary Colombia has been major US ally, recipient of aid Steep tariffs would hit legitimate businesses, analysts say Alienating Latin America provides opportunity for China WASHINGTON/BOGOTA, Oct 21 (Reuters) - U.S. President Donald Trump's threat this week to slap Colombia with tariffs over its drug policy marked a sharp escalation in his feud with a country that has long been one of Washington's closest Latin American allies.It was also a rejection of an established idea about countering the narcotics business: that free trade can make legitimate exports more attractive than drug trafficking.Read about innovative ideas and the people working on...

President Donald Trump announced on Sunday that he will give a $2,000 check to every American, which will come from the tariff revenue collected by the administration. “A dividend of at least $2000 a person (not including high income people!) will be paid to everyone” Trump wrote on Truth Social, adding that those against tariffs are “fools.” While this proposal would likely need to be passed by Congress, it resembles legislation introduced this summer by Republican Sen. Josh Hawley’s (R-Mo.) this summer, to give $600 tariff rebates to nearly all Americans and their dependent children. “My legislation would allow hardworking...

How do I begin to cover today’s latest development: President Trump, having imposed steep tariffs on Chinese goods—tariffs that reached a staggering 145%—is now signaling a substantial reduction. Treasury Secretary Scott Bessent has acknowledged these tariffs are "unsustainable," hinting at a likely de-escalation in the trade war with China. Yet, in a twist of political theater, this retreat is being celebrated by supporters as a strategic masterstroke. The same voices that once championed the tariffs as a bold stand against China now laud their rollback as a savvy move, all without a hint of irony.​ I say this a lot,...

With the election of Zohran Mamdani as Mayor of New York, much conversation has been made of his appeal to “affordability.” As I’ve written previously, this is a noble conversation, but one that has been dishonestly framed (by Democrats and media) to date. I will use Mamdani’s comment in his acceptance speech to re-frame the debate. We will prove that there is no problem too large for government to solve, and no concern too small for it to care about.Mamdani and the Democrat party have effectively defined a binary choice: Should government or “the market” control affordability? The Democrats are...

Newsdump Alert: Afghanistan-Pakistan Peace Talks Break Down Conflict Follows Pakistan Leader's White House Visit, Trump Demand For Use Of Bagram Air Base... Back in September Israeli Prime Minister Benjamin Netanyahu made his country's priority clear when meeting military leadership... "He was the founder of this important internet platform for Conservatives, and was a true patriot"... But for starters I'll go back to the music I heard in my background the guys in the dorm were into this group... "And so I put the blame on both Republicans and Democrats for basically, Caitlin. Just can't say it on CNN. But it's...

The most important thing to know about the Trump administration’s defense of its hotly contested use of tariffs to bring allies and opponents to heel is not that it is a novel and unprecedented legal argument but rather a full-throated articulation of the campaign themes that got the president elected – in both 2016 and 2000. In its legal documents, and in the oral arguments that took place before the Supreme Court Wednesday, the Trump administration paints a picture of America under siege. Once thriving industrial towns in the Midwest hollowed out. Factories dismantled as supply chains have been moved...

With a social-media post that said “STOP LYIN” about there being an affordability crisis, President Trump claims he’s whipped inflation. But consumers are still feeling the squeeze. Target’s prices are up 5.5% nationwide this year and Walmart’s are up 5.3%, according to an analysis by DataWeave, which looked at roughly 16,000 items across each retailer’s website. Amazon’s price hikes have averaged more than 12%, according to a report. After seven months under Trump’s tariffs, Americans are paying more for nearly everything — from a cup of joe and plush living room sofas to children’s toys. Inflation for food has been...

In the most significant economic case to reach the Supreme Court in years, Trump’s authority to issue emergency tariffs faced deep skepticism from key conservatives — including Chief Justice John Roberts and Justices Amy Coney Barrett, Neil Gorsuch and Brett Kavanaugh. • While justices had tough questions for both sides, a majority expressed reservations about the administration relying on declared emergencies to issue the unchecked tariffs. • As plaintiffs presented their case, Kavanaugh repeatedly noted that courts had previously allowed then-President Richard Nixon to use similar emergency powers to impose tariffs during his administration. • Both sides previously framed the...

President Donald Trump's use of sweeping tariffs faced sharp questioning at the Supreme Court on Wednesday, in a case with major implications for the president's agenda and the global economy. A majority of justices, including several conservatives, expressed doubts about the White House's justification of the import duties, which the president has said are necessary to restore America's manufacturing base and fix its trade imbalance. The measures are being challenged by a number of small businesses and a group of states, which contend that the president has overstepped his authority in imposing the levies, which are in effect a tax....

Beginning at 9:30 a.m., we will be live blogging as the court hears oral arguments in Learning Resources, Inc. v. Trump.

Small-business owners sued over Trump’s tariffs, saying they had severely disrupted their businesses.The outcome is likely to turn on three doctrines that have been championed by the Supreme Court’s conservatives. WASHINGTON — The Supreme Court’s conservatives face a test of their own making this week as they decide whether President Trump had the legal authority to impose tariffs on imports from nations across the globe.At issue are import taxes that are paid by American businesses and consumers. Small-business owners had sued, including a maker of “learning toys” in Illinois and a New York importer of wines and spirits. They said...

I wrote here and here about the federal lawsuit that challenges President Trump’s authority under the International Emergency Economic Powers Act to impose most of his tariffs, including his worldwide “reciprocal” tariffs. The case, V.O.S. Selections, Inc. et al. v. Trump, originated in the Court of International Trade, which held 3-0 that the challenged tariffs were not authorized by Congress. That decision was upheld on a 7-4 vote by the Court of Appeals for the Federal Circuit. The case is now in the Supreme Court, where it will be argued tomorrow. The New York Post covers the Supreme Court proceeding,...

(The Economic Collapse Blog)—What is the Fed not telling us? The numbers clearly indicate that big trouble is brewing in the banking system. I wish that I could specifically tell you which banks are in the most trouble, but at this stage we simply aren’t being told anything. They probably figure that the best approach is to try to keep everyone as calm as possible. But they won’t be able to keep a lid on what is going on indefinitely, and when word finally gets out people could start to panic. In recent weeks, bank reserves have fallen to alarmingly...

LEXINGTON — Candidates for U.S. Senate in Kentucky talked on Wednesday about national economic and trade policies before a gathering focused on manufacturing and innovation. Answering questions in front of the Kentucky Industry Conference held in Lexington this week, top Republican candidates — former Attorney General Daniel Cameron, U.S. Rep. Andy Barr and businessman Nate Morris — reiterated their support for President Donald Trump’s agenda. Former Marine fighter pilot Amy McGrath, the only Democratic candidate to address the forum, offered a different view and said “what we’re seeing from this administration right now is dangerous and not normal.” The candidates...