Trump's Tariff Threats Against Apple and Mattel: A Legal Debate

President Trump threatened tariffs on Apple and Mattel for not bringing manufacturing back to the US. Experts debate whether Trump has legal power to impose tariffs on specific companies. A recent court decision questioned the President's authority to impose tariffs without Congressional action, but the decision was temporarily suspended. Trump could target imported smartphones through a Section 232 investigation, which could be a lengthy process. Mattel is unlikely to face tariffs as it would be difficult to argue that Barbie dolls pose a national security threat.

President Donald Trump has threatened to impose tariffs on Apple and Mattel for not bringing manufacturing back to the United States. The move has sparked debate among experts about the President's legal power to target specific companies with tariffs. A recent court decision questioned the President's authority to impose tariffs without Congressional action, but the decision was temporarily suspended.

The legal basis for Trump's tariffs is Section 232 of the Trade Expansion Act of 1962, which allows the President to impose tariffs on imports deemed necessary for national security. However, a recent ruling by the U.S. Court of International Trade questioned the President's authority to use this provision without Congressional approval. The court ruled that the President's authority under Section 232 is limited to national security concerns and that any other justification must be supported by a finding of national security [3].

Despite the court's ruling, Trump has threatened to impose tariffs on Apple and Mattel. Apple has been criticized for manufacturing most of its products overseas, while Mattel, known for its Barbie dolls, has also been accused of not bringing manufacturing back to the U.S. However, it is unlikely that Mattel will face tariffs, as it would be difficult to argue that Barbie dolls pose a national security threat.

The threat of tariffs on Apple and Mattel has raised concerns about the potential impact on the U.S. economy. A recent report by Ken Griffin, CEO of Citadel, highlighted the negative impact of Trump's tariffs on the U.S. economy. Griffin warned that the tariffs have already taken a toll on the economy and could further erode the nation's brand and financial strength [2].

The threat of tariffs on Apple and Mattel also comes at a time when private job growth has hit a two-year low. According to the ADP National Employment Report, businesses added just 37,000 jobs in May, the lowest level since March 2023. The disappointing job total missed the Dow Jones forecast of 110,000 [4].

While the threat of tariffs on Apple and Mattel is still in the early stages, it is clear that the move has significant legal and economic implications. The legal battle over Trump's authority to impose tariffs without Congressional approval is ongoing, and the economic impact of the tariffs remains to be seen. However, the threat of tariffs has already raised concerns about the potential impact on the U.S. economy and the job market.

References:
[1] https://timesofindia.indiatimes.com/world/us/donald-trump-tariffs-will-cause-a-recession-elon-musks-big-warning-tesla-loses-150-billion/articleshow/121659705.cms
[2] https://www.livemint.com/economy/citadels-ken-griffin-warns-of-trump-tariffs-taking-a-toll-on-us-economy-heres-what-the-billionaire-said-11749139006141.html
[3] https://economictimes.indiatimes.com/news/economy/foreign-trade/india-weighs-legal-uncertainties-around-trump-tariffs-as-trade-pact-talks-start-this-week/articleshow/121627132.cms
[4] https://dailyvoice.com/nj/roseland-essex-fells/private-job-growth-hits-two-year-low-amid-trump-tariffs-hiring-is-losing-momentum/