BROWNSVILLE, Texas - Mike Willis, executive director of the South Texas Manufacturers Association, discussed tariffs in his monthly report for February.
STMA met at the Brownsville Events Center on Feb. 12.
“I want to touch on the tariffs really quickly. So, most of you all know the Supreme Court is preparing to release their decision on reciprocal tariffs,” Willis said, at the start of his report.
“There are basically two large classes of tariffs. I'm not an expert, but one of them is a different schedule tariff. That relates to things like steel, aluminum. I think President Trump added copper recently to that. You're making a case that they're vital; vitally important, to our nation's security. So it's a different class tariff.
“Reciprocal tariffs are basically where we look at countries and decide we're going to put a tariff on them for various reasons.”
Willis then explained the stakes involved with the Supreme Court decision.
“So, tomorrow (Friday, Feb. 13) is the next day that the Supreme Court can announce decisions they've made. There is a lot of speculation that it may include the reciprocal tariffs decision. Or it could be a number of more weeks before that happens. But it is a really important one, because there's a lot riding on it both ways.”
Willis then spoke about the involvement of the House of Representatives.
“So, something happened yesterday that really highlighted what my concern has been. So, yesterday, the House of Representatives passed a bill or a resolution voiding the reciprocal tariffs that the President implemented against Canada.
“The resolution would have removed all tariffs on Canada, and the House passed it. So, now it has to go to the Senate for approval. And if they approve it, guess what happens? It goes to the President's desk to sign it. Well, do you think the President is going to sign that? Of course not.”
That action by the House points to why the Supreme Court has taken the case, Willis said.
“To me, it shows the challenge involved in all of this, and it is one of the things I'm sure the Supreme Court's looking at. Normally, based on historical precedent and the Constitution, the House and the Senate are supposed to initiate any legislation that has to do with spending, taxes and all that sort of stuff, including tariffs. And then it goes to the president. The president has the authority to veto it and not let it happen. But it's supposed to initiate with our representatives.”
However, that is not what is happening, Willis explained.
“The way it is now, the President is launching the tariffs, and the House has no input into that. So, the only thing the House can do, if they don't like a tariff, is do what they did yesterday and pass a bill. But guess who can veto the bill?”
Willis did not answer his own question but the answer is, the president.
“This, in my mind, is sort of upside down. I'm not knocking the idea of tariffs. I’m just saying to me, it's supposed to be deliberated, debated, discussed, and everyone weigh in on it in the House and Senate, and then the President gets the final decision.
“So, I think that's going to be another factor that's factored into the Supreme Court's decision. So we'll see how it goes.”
