Modifying The Scope Of The Reciprocal Tariff With Respect To Certain Agricultural Products
Summary
This executive order modifies the scope of reciprocal tariffs on certain agricultural products, initially imposed under Executive Order 14257. The President, citing the International Emergency Economic Powers Act and other authorities, adjusts tariffs in response to monitoring and recommendations from officials, negotiations with trading partners, and domestic supply and demand considerations. The order removes certain agricultural products from the reciprocal tariff list, updating Annex II of Executive Order 14257 and the Annex to Executive Order 14346.
Expected Effects
The order will likely lead to changes in the prices and availability of affected agricultural products. It may also impact trade relationships with other countries. The modifications aim to address the national emergency declared in Executive Order 14257 related to trade deficits.
Potential Benefits
- Potentially lower costs for consumers on specific agricultural products.
- Improved trade relations with countries that export the exempted agricultural products.
- Increased competitiveness for domestic industries that rely on these imported agricultural products.
- Possible stabilization of domestic supply chains for the affected agricultural goods.
- Flexibility in trade policy to address specific economic conditions.
Potential Disadvantages
- Potential negative impact on domestic producers of the now-exempted agricultural products.
- Possible reduction in tariff revenue for the U.S. government.
- Uncertainty for businesses due to frequent changes in trade policy.
- Risk of retaliatory tariffs from other countries if they perceive the changes as unfair.
- Possible distortion of agricultural markets.
Constitutional Alignment
The executive order cites the International Emergency Economic Powers Act (IEEPA) and the Trade Act of 1974 as its legal basis. The Constitution grants the President certain powers in the realm of foreign trade and national security. However, Congress has the primary authority to regulate commerce with foreign nations (Article I, Section 8, Clause 3). The use of executive orders to modify tariffs can raise questions about the separation of powers.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).