Our Republican Legacy (ORL) Policy Statement on Administration’s Destructive Tariffs

The Issue

The Administration’s destructive tariffs are the largest tax hike on consumers and businesses in modern history, which will destroy personal wealth and lead to recession or worse. They are wreaking havoc on the U.S. equity and bond markets, while undermining the value of the U.S. dollar and trust in doing business or investing in the United States. These chaotic and unnecessary tariffs violate ORL’s principles on free markets and the Constitution.

The current tariffs will increase inflation and lead to an avoidable recession, millions of lost jobs, and the needless loss of retirement savings for seniors and all working Americans. They are already igniting foreign retaliation and a global trade war with our friends and allies. They will not lead to new manufacturing jobs or more foreign investment here anytime soon to help our economy. Currently, there is no realistic or easy access to sufficient long-term capital to invest and rebuild manufacturing here, just as there is not enough time to offset the economic loss from tariffs while waiting years for lost manufacturing to return if it ever does. These tariffs are the worst set of U.S. economic policy decisions since the Tariff Act of 1930 (Smoot-Hawley), which led to the Great Depression.

ORL Policy Position

ORL strongly opposes the current tariffs, which have been levied illegally in any case. The on-again, off-again tariffs will cause even more economic uncertainty and deter beneficial trade with, and needed investment in, the United States to grow our economy and expand opportunities over time.

Instead of universal and nonstrategic tariffs that will only wreck our economy, ORL supports both the US and its trading partners lowering tariffs to expand international trade and investment with our friends and allies. Our approach supports U.S. economic growth, job creation, and prosperity for all who participate in our economy. ORL believes that a strong U.S. economy and international economic cooperation based on market principles under the rule of law also enhances our national security.

Action Required

ORL calls for an end to the Administration’s harmful and illegal tariffs before they do any more financial damage by increasing costs to consumers and businesses, triggering recession, and causing havoc with individuals’ life savings and retirement investments.

If the Administration will not halt and reverse its tariffs, then ORL calls on Congress to act now and reassert its Constitutional authority under Article I by reversing and rescinding these tariffs before it is too late to save the U.S. economy from further harm.

ORL supports litigation to clarify that the President has misused the International Emergency Economic Powers Act, exceeding his constitutional authority, in levying these tariff taxes on the American people.

Congress should work to lower United States and our trading partners’ tariffs to stimulate more trade, investment, capital formation, economic growth, and jobs in the United States. Congress must act before the current tariffs do any more damage to the U.S. and global economy. In addition causing trillions of dollars of wealth destruction, the current U.S. tariffs create needless animosity among our valuable trading partners, which only undermines our long-term national economic and security interests.