Biden’s Potential Climate Tariffs Might Require Congressional Approval

WEST LAFAYETTE, IN – What will trade policy look like beginning in 2021? According to Russell Hillberry, Purdue University Professor of Agricultural Economics, the question is not all that easy to answer.

He suggests that campaign commitments made by President-Elect Joe Biden will be difficult to implement without unified control of Congress (Democratic control of both the House and Senate).

Since most of what President Trump accomplished in trade policy was done without the assistance of Congress – except for reneogtiation of the North American Free Trade Agreement (NAFTA), now called USMCA – Biden may be able to remove tariffs and change some negotiation tactics through his U.S. Trade Representative.

However to achieve the larger goals of forcing other countries to address climate change, a high priority of the Biden administration, it will require Congress addressing the issue through comprehensive climate change legislation that garner support from both sides of the aisle.

Hillberry suggest that an interesting aspect of assessing carbon tariffs on other countries will come from the same “national security” clause that President Trump used to implement tariffs on aluminum and steel, and might offer Biden the authority to impose carbon tariffs without Congressional approval.

He does add that to access carbon tariffs there would need to be a program to “price” carbon emissions, which would require action by Congress.
(SOURCE: All Ag News)