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free trade & free markets international affairs tax policy U.S. Constitution

Legal Trade War

Donald Trump’s imposition and changing of tariffs, all by his lonesome — without Congress — vexes more than a few critics.

His authority to do this, however, derives directly from laws passed by Congress.

The U.S. Constitution gives Congress the power to “lay and collect Taxes, Duties, Imposts and Excises” under Article I, Section 8, which includes tariffs, since they are taxes on imported goods. But Congress has legislated hand-​offs to presidents, allowing significant flexibility on tariffs.

The idea seems to be that, as Commander-​in-​Chief, the president should handle trade because … like war, it has to do with foreign countries.

Laws allowing presidential discretion include Section 232 of the Trade Expansion Act, Section 301 of the Trade Act of 1974, and the International Emergency Economic Powers Act of 1977. 

The first says that the president has broad discretion to define as threats to national security all sorts of things and then impose tariffs and other trade restrictions in response.

The 1974 legislation authorizes further along Trump’s favored line, the power to retaliate against “unfair” foreign trade practices.

The IEEPA grants sweeping powers in a declared national emergency.

So if free traders and others are alarmed at Trump’s seemingly dictatorial powers regarding tariffs, it isn’t new. It has been built into the Imperial Presidency. While Congress could take its constitutional authority back, there is certainly no groundswell to do so.

Also not new?

What setting up high tariffs have historically done: elicit similar tariffs in retaliation. 

Yikes: the kind of trade war that made the Great Depression “great.”

This is Common Sense. I’m Paul Jacob.


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education and schooling national politics & policies Tenth Amendment federalism

Nixon & Trans Athletes

The President of the United States clashed with the governor of Maine over transgender participation in government-​organized athletics. Quite a hoot.

Behind this fracas looms the legacy of … Richard M. Nixon.

First, the fracas: “In a tense exchange with Maine Democratic Gov. Janet Mills, President Donald Trump threatened to strip Maine of its federal funding,” explains CNN, “if the state refuses to comply with his executive order banning transgender women from competing in women’s sports.”

The brief volley of promises (threats) between the governor and the president made other governors “uncomfortable.” Yes, that’s a news story.

“Is Maine here?” he wondered aloud. “The governor of Maine?”

“Yeah,” Gov. Janet Mills answered from across the room. “I’m here.”

And then came a testy political exchange, the kind you don’t often see, culminating in this from Trump: “You better comply, you better comply, because, otherwise, you’re not getting any federal funding.” 

“See you in court,” she promised.

“Good; I’ll see you in court. I look forward to that. That should be a real easy one. And enjoy your life after governor, because I don’t think you’ll be in elected politics.”

Trump may not be wrong. He may have the better legal case.

But doesn’t it seem weird that the president of the United States can extort compliance from the states on matters that are not enumerated in the Constitution?

Well, back in his first term Trump signed an executive order to direct a new devolution process of turning back education to the states. But the transgender issue is a big deal, and most Americans (around 80 percent) are against “biological” “men” competing with girls and women in sports, and since much of sports in America takes place in state-​directed/​taxpayer-​funded contexts, Trump is leveraging federal bloc grants against states that balk at his agenda.

Thank Nixon and his “New Federalism.” While an attempt to give power back to the states, it also tied federal money to the devolution, which has effectively turned states into welfare queens begging big bucks off Washington, severely compromising the states’ … basic competence.

It’s this policy that Trump should be fighting.

But that would make governors even more uncomfortable.

This is Common Sense. I’m Paul Jacob.


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ideological culture

The Libertarian Path?

Donald Trump is launching so many initiatives to curtail government power and its abuse that even students of policy find it hard to keep up. I don’t always agree with what he’s doing, but I often do. Sometimes, a hundred percent.

In his second term, President Trump is following what Glenn Reynolds calls a libertarian path. 

Say, what?

There has long been a libertarian streak in the Republican Party — from even before Goldwater’s 1964 presidential run — but once in power, Republican politicians rarely did any streaking.

Trump was different at the start, more immune to many of the left’s vicious tactics. But Trump 2 (2025- ) is still different from Trump 1 (2017 – 2021).

One difference between 2017 and now is that in the intervening years, Trump’s ideological enemies have slugged him with impeachments, every possible kind of bogus investigation and lawsuit, rigged various parts of the 2020 election, robbed him of many millions of dollars, and threatened him with imprisonment.

“Trump saw firsthand, to a degree greater than probably any American citizen ever, just how far the resources and lack of principles or moral fiber of the federal government go,” writes Reynolds. “It would be very difficult to remain a believer in Big Government … after that.” 

Reynolds echoes Trump’s declaration at the Libertarian Party convention last May about the consequence of his persecution: “If I wasn’t a libertarian before, I sure as hell am a libertarian now.”

One Trump foe complains that his second term “is all about curtailing government’s power and reach.”

Yes. We know. Feature, not a bug.

This is Common Sense. I’m Paul Jacob.


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First Amendment rights national politics & policies

A Free Speech Order

“Will President Trump be a free speech president?”

On January 21, David Keating, president of Institute for Free Speech, asked this question. And he refers the reader to his Wall Street Journal op-​ed published last month in which he offered suggestions about how to stop the federal government from censoring people via social media or in other ways.

The new president sure seemed to get off to a good start restoring the First Amendment. One of his thirty or so executive orders signed on the 20th, his first work day, is entitled “Restoring Freedom of Speech and Ending Federal Censorship.”

Section 2 says that it is U.S. policy to “secure the right of the American people to engage in constitutionally protected speech,” ensure that no federal employee or agent “engages in or facilitates” unconstitutional abridgement of speech, and “identify and take appropriate action to correct past misconduct by the Federal Government related to censorship of protected speech.”

Section 3 says no federal employee or department may act in a manner inconsistent with Section 2.

Maybe this broad order needs to be supplemented with many more specific orders that say: Really. Don’t engage in censorship here or there or anywhere.

This is where specific suggestions like Mr. Keating’s come in handy, such as preventing the IRS from penalizing taxpayers for criticizing political candidates, repealing SEC limits on political donations, and instituting specific regulations to “force disclosure of most government contacts with social-​media organizations asking to take down third-​party posts,” thereby scuttling most future such contacts.

It’s a start. Let’s keep going.

This is Common Sense. I’m Paul Jacob.


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national politics & policies porkbarrel politics

The Biggest Gift of All

We received an early Christmas present from the incoming Trump administration.

The gift? The torpedoing of a continuing resolution (CR) supported by House Speaker Johnson that was full of concessions to the Democrat side of the aisle. Aside from the drunken-​sailor spending, the 1,500-plus-page legislation — just something to tide the government over for a few months — contained many other horrific elements that made it worthy of deletion.

Trump, Vance, and Musk are among those who volubly criticized the pork and other bad provisions of the CR.

Senator Rand Paul said: “I had hoped to see @SpeakerJohnson grow a spine, but this bill full of pork shows he is a weak, weak man. The debt will continue to grow. Ultimately the dollar will fail. Democrats are clueless and Big Gov Republicans are complicit.”

Ostensibly designed to continue funding the federal government after the money had run out, the bill’s poisonous elements included a pay increase for members of Congress and a provision to make it almost impossible for the Trump Justice Department to investigate wrongdoing in the House (such as the evidence-​destroying way the J6 investigation was conducted).

Another provision would have extended the life of a State Department’s Global Engagement Center, a censorship office that Republicans have been trying to kill for years. Some Republicans, that is. The ones in favor of freedom of speech. The GEC funds efforts to suppress speech.

But the worst of it was stopped. The CR monstrosity became a much more manageable, much smaller CR; “the government was saved” — and, more importantly, we were saved some of the awful things packed into the earlier resolution.

Still, a lot of people (mainly Democrats) didn’t like their Christmas gift.

And dashed were the holiday dreams of members of Congress, stuck another term at current levels of remuneration.

Ho ho ho.

This is Common Sense. I’m Paul Jacob.


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defense & war international affairs

Trump & Taiwan

“China Issues Donald Trump a Warning Over Taiwan,” Newsweek headlined Billal Rahman’s recent article.

For the last five years, I havecounseled that the U.S. must either withdraw from Southeast Asia or convince the Chinese regime that we and our allies are willing to stand up to them, militarily.

How will President Trump respond in a second term?

Arguing that “the United States … is always America first,” a spokesperson for China’s Taiwan Affairs Office recently needled: “Taiwan at any time may turn from a pawn to a discarded child.” 

However, Lyle Goldstein with Defense Priorities notes that “During Trump’s last four years there was quite a robust stance in favor of defending Taiwan …” While Al Jazeera headlined a recent story, “Trump signals hard line on China with hawkish cabinet picks.”

Still, “I think Taiwan should pay us for defense,” Trump said back in June.* 

“[T]hey want protection,” he told Joe Rogan last month. “The mob makes you pay money, right?  But with these countries that we protect, I got hundreds of billions of dollars from NATO countries that were never paying us.”

Mr. Trump did successfully prod NATO countries into putting more money into their militaries. That seems to be his gambit with Taiwan.

And maybe it’s working. 

“Taiwan is considering a massive $15 billion military package,” Fox News is reporting, “in a show to the incoming Trump administration that it is serious about defending itself against the threat posed by China.”

Plus, as The Epoch Times illuminates, “A coalition of the willing is already emerging.” Countries in Europe and Asia are increasingly coming together and standing up against Chinese bullying of Taiwan.

As we await the second Trump administration.

This is Common Sense. I’m Paul Jacob.


* Trump also charged that Taiwan “stole” our computer chip business. True, in the same sense that Shohei Ohtani stole 57 bases for the LA Dodgers last season.

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