U.S. President Donald Trump and Japanese Prime Minister Shinzo Abe recently signed a limited trade deal, which
opened Japanese markets to around 7 billion dollars worth of U.S. agricultural products, such as cheese, pork,
wheat and cheese. Although there was no official confirmation of the fact, President Trump reassured Abe that he
would not impose any Section 232 tariffs (refer to https://fas.org/sgp/crs/misc/R45249.pdf for more information -
essentially, section 232 of the 1962 “authorizes the President to impose restrictions on certain imports based on an
affirmative determination by the Department of Commerce (Commerce) that the targeted products are being
imported into the United States ‘in such quantities or under such circumstances as to threaten to impair the national
security’”) on Japanese cars.
opened Japanese markets to around 7 billion dollars worth of U.S. agricultural products, such as cheese, pork,
wheat and cheese. Although there was no official confirmation of the fact, President Trump reassured Abe that he
would not impose any Section 232 tariffs (refer to https://fas.org/sgp/crs/misc/R45249.pdf for more information -
essentially, section 232 of the 1962 “authorizes the President to impose restrictions on certain imports based on an
affirmative determination by the Department of Commerce (Commerce) that the targeted products are being
imported into the United States ‘in such quantities or under such circumstances as to threaten to impair the national
security’”) on Japanese cars.
Other than the assurance that the U.S. will not impose Section 232 tariffs on Japanese automobiles, Japan received
reduced tariffs on agricultural (soy sauce, flowers) and industrial goods (steam turbines, musical instruments,
power tools).
reduced tariffs on agricultural (soy sauce, flowers) and industrial goods (steam turbines, musical instruments,
power tools).
An important impact of these new trade deals will most definitely be on U.S. farmers - a breath of fresh air in the
wake of the U.S. - China trade war, under which many farmers have been suffering. Repairing the damage done to
U.S. farmers, however, can only come with resolving the U.S. - China trade war; according to
(https://www.reuters.com/article/us-usa-agriculture-braun-column/column-japan-deal-nice-for-us-agriculture-
but-china-is-the-much-bigger-prize-braun-idUSKBN1WB003), U.S. soybean farmers are from a nearly nine
billion dollar drop in U.S. soybean exports to China. Whereas, U.S. exports to Japan have still been strong in
the past few years, even with the absence of a trade deal.
wake of the U.S. - China trade war, under which many farmers have been suffering. Repairing the damage done to
U.S. farmers, however, can only come with resolving the U.S. - China trade war; according to
(https://www.reuters.com/article/us-usa-agriculture-braun-column/column-japan-deal-nice-for-us-agriculture-
but-china-is-the-much-bigger-prize-braun-idUSKBN1WB003), U.S. soybean farmers are from a nearly nine
billion dollar drop in U.S. soybean exports to China. Whereas, U.S. exports to Japan have still been strong in
the past few years, even with the absence of a trade deal.
It’s interesting to note the amount of affect Federal commerce decisions will come to have on the states- as we
know, the Commerce Clause allows the Federal government to regulate commerce. In the context of a
recession, this can be a good thing, as the Federal government can use its powers to attempt to spur economic
growth. However, in the context of a trade war, there is much potential for state economies, not to mention the
people, to suffer, as tariffs upon tariffs are stacked upon the belligerents of the trade war.
know, the Commerce Clause allows the Federal government to regulate commerce. In the context of a
recession, this can be a good thing, as the Federal government can use its powers to attempt to spur economic
growth. However, in the context of a trade war, there is much potential for state economies, not to mention the
people, to suffer, as tariffs upon tariffs are stacked upon the belligerents of the trade war.
Question Prompts:
- Read over this (https://fas.org/sgp/crs/misc/R45249.pdf) document, and look at some of the history behind the usage of Section 232. Should the presidency have this power? Or is this an overextension of the commerce clause?
- With the new trade deal, President Trump has finally secured a win for U.S. farmers after they had suffered under the U.S. - China trade war! Did he really, though? What do you think the effect of the deal will be on U.S. farmers?
- The trade deal lifts tariffs imposed on many Japanese manufactured goods. Do you think this will hurt U.S. manufacturing jobs?
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