US
Expert Comment on Reversing Trump-Era Tariffs and Charting a New U.S. Trade
Policy After the 2026 Midterms
In the November 2026 Progressive Policy Institute
report "End of an Error,"
author Edward Gresser argues that voters' rebuke of
the Trump administration in the midterm elections signals a clear mandate to
dismantle its unilateral tariff regime and rebuild U.S. global economic
leadership.
The Tariff Program and Its
Economic Impact
·
Rule by Decree: Rather than passing legislation
through Congress, the Trump administration issued over 50 executive actions
using statutes like IEEPA and Sections 122, 232, 301, and 338 to raise the U.S.
trade-weighted tariff rate from 2.3% in 2024 to 11.0% by autumn 2026.
·
Burden on Families: Tariffs
added 2.9 percentage points to goods inflation by February 2026 and currently
cost the average American household $1,077 annually, hitting low-income
families hardest.
·
Damage to Industry and Agriculture: Because
58% of U.S. imports are business inputs, tariffs have driven up costs for
domestic builders, farmers, and manufacturers. Since 2024, farm incomes have
dropped 5%, farm bankruptcies have nearly doubled, and manufacturing has lost
20,000 jobs.
A
Three-Pillar Blueprint for the Incoming Congress
To address voter demands for affordability and
constitutional accountability, the report outlines three primary actions for
the new Congress taking office in January 2027:
1.
Restore Constitutional Separation of Powers
o
Reclaim congressional authority over taxation and
tariffs by requiring formal legislative votes before a president can impose
duties under Sections 232, 301, or 201, or withdraw from ratified trade
agreements.
o
Repeal antiquated trade authorities like Sections
122 and 338 to prevent future presidents from ruling by decree.
2.
Lower Costs and Reform the Tariff Code
o
Repeal Trump-era Section 232, 301, and 338 tariffs
to relieve price pressures on consumers, manufacturers, and farmers, while
freezing the USMCA review and maintaining a temporary tariff truce with China
until a new president takes office in 2029.
o
Overhaul the permanent Harmonized Tariff Schedule
to eliminate regressive taxes that disproportionately penalize mass-market
goods and women's clothing.
3.
Re-engage with the World
o
Reject the economic pessimism and isolationism of
the past decade by capitalizing on American strengths in advanced
manufacturing, R&D, agriculture, and digital services.
o
Rebuild frayed alliances with neighbors
and democratic partners to counter Chinese economic coercion, revive
development programs like the Generalized System of Preferences and USAID, and
establish international agreements on AI governance and digital trade.