The Trade Review Act of 2025 aims to limit presidential tariff powers by requiring congressional approval, but faces significant political hurdles.
Concerns about the legality of the Trump administration's funding freezes highlight tensions between executive authority and congressional appropriations.
Deep dives
Bipartisan Efforts on Tariff Legislation
A bipartisan group of senators has introduced the Trade Review Act of 2025, which would require congressional approval for tariffs implemented by the president. If Congress does not approve, the tariffs would expire after a 60-day period. However, the bill faces challenges, including a potential veto from President Trump, who has indicated that he will not reduce his tariff powers. In response, 12 states have initiated lawsuits against the Trump administration, arguing that only Congress holds the authority to legislate tariffs.
Implications of a Fed Chair Dismissal
Questions have arisen regarding the potential impact of President Trump's ability to fire Federal Reserve Chair Jerome Powell. Although Trump claimed he has no intention of firing Powell, concerns persist about what might happen if he did. The Federal Open Market Committee, which comprises 12 members, would still retain the ability to choose a new chair, but a leadership change could lead to significant instability in the economy. The fear is that such an action would result in chaos, prompting investors to distrust the U.S. economy and sell off investments.
Understanding Appropriated Funds
The legality surrounding the Trump administration's funding cuts has become a contentious topic, particularly regarding money that Congress has appropriated but is not being spent. The executive branch cannot legally refuse to allocate these funds, and any unspent money typically remains in the Treasury, potentially reducing the deficit. However, most of the proposed cuts are being enacted without adhering to legal standards set by the Impoundment Control Act. Additionally, there are implications for programs like public media that are currently being targeted for rescission requests but may not follow the proper legal channels.
Today, we’re answering questions from our listeners about everything going on in this economy (we know, it’s a lot). Like, whatever happened to that bipartisan bill that would pass authority over tariffs back to Congress? We’ll get into the status of the legislation and how states are jumping into the fight. Plus, we’ll discuss the legality of the Trump administration’s funding freezes and how foreign trade zones are helping some companies avoid sky-high tariffs.
