While on the road to trade wars with Mexico and China, and President Trump’s absence from the country, the Republicans have begun to figure out a way to retract the tariffs imposed – in order to avoid negative impacts on the US economy.
Many believe that this stern stance of imposing tariffs might bring out recession and slow down the economy. From the last few days, it seems that the President does not wish to end or resolve the trade war with China and to make the matter worse, he even imposed tariffs on Mexico exported goods.
While Republicans are figuring out ways to put an end to trade wars and retract the tariffs, they have been divided over the means to convince the President. Apart from convincing Trump to withdraw the tariffs imposed and put an end to the trade war, some of the Republicans are also working on a scheme to curtail his authority on tariffs.
Senate Finance Committee Chairman Chuck Grassley said that he wants to reduce Trump’s power of imposing tariffs. He also mentioned that he was not forewarned, when Trump imposed tariffs on Mexico.
Similarly, Sen. John Cornyn, an adviser to Senate Majority Leader Mitch McConnell, wants to coax the President to change his stance on trade wars, but through a private dialogue.
According to the warnings of the major investment banks, US may soon experience a recession with high chances of it occurring before the 2020 presidential elections. Also, it is a possibility that interest rates might be reduced this year along with which an increase in $200 billion tax can be recorded.
Previously, Trump criticized the approach of the Mexican government to curb the immigration issues, causing rise in the number of illegal migrants. Mexican President Andres Lopez Obrador despite the imposed tariffs, agreed to find a resolution on the immigration issues together with the US government, to avoid a confrontation or a trade war.
In order to avoid the trade wars and to curtail the Trump’s authority on tariff, Grassley said, “Leave no doubt. I intended to get a compromise between Toomey and Portman and also get enough Democrats so it’s bipartisan to move a bill.”
Cornyn, in regards with GOP members being able to convince Trump and the tariffs imposed said, “I viewed that as a very positive thing, but I think [the latest tariff threat] calls into question our ability to pass the USMCA, much less get it passed by Canada [and] Mexico.”
He also said that Grassley’s method of introducing and passing the bill would not work as Trump might easily use his veto on Grassley’s bill.
Investment Company Morgan Stanley alerted that a global recession might soon hit the US in the next nine months. On the other hand, JPMorgan warned that chances of recession striking the US in the second half of 2019, has risen from 25 to 40 percent.
Tariffs imposed on Mexico exported goods will definitely put a burden in billions on the pockets of the US consumers and might also cause inflation. Even though the Republicans have not yet approached Trump or the Democrats, it will be worth looking forward to if Trump can let go of his policy of trade wars.
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