Unchecked and unbalanced: The future of U.S. economic policymaking
Yet for all that's been written about Trump's tariffs, the more enduring challenge is the centralization of economic decision-making in the office of the president, the repercussions of which could outlast the Trump presidency.
The central government of the United States is defined by its separation of powers, where authority is not concentrated in a single actor but divided between an executive branch, legislative branch and a judicial branch, with each branch providing oversight over the others through a system of checks and balances. The concern about the dangers of centralized authority was fresh in the minds of the authors of the U.S. Constitution who had just achieved independence from what they saw as an example of the capricious, centralized power that they wanted to avoid, and so they consciously created a system of government that was designed to prevent that from happening in the United States.
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Japan Times
16 minutes ago
- Japan Times
Trump's latest tariffs cast shadow on Rubio's first Asia trip as top U.S. envoy
U.S. Secretary of State Marco Rubio will visit Malaysia this week for meetings of Southeast Asian Nations in his first trip to Asia as America's top diplomat, the State Department said Monday, even as U.S. President Donald Trump announced hefty tariffs on the hosts and other regional partners and allies. The State Department billed the July 8 to 12 trip as a move to reaffirm Washington's commitment to the Indo-Pacific. Hours later, Trump said he would impose 25% tariffs from August 1 on imports from Japan and South Korea, key U.S. regional allies and vital partners in countering China's growing might. Trump also announced plans for tariffs on Malaysia and five other countries in the 10-member Association of Southeast Asian Nations, whose ministers Rubio will join for meetings in the Malaysian capital Kuala Lumpur. Malaysia faces a 25% tariff, Laos and Myanmar 40%, Cambodia and U.S. ally Thailand 36%, and Indonesia 32%. Rubio is expected to seek to firm up U.S. relationships with partners and allies unnerved by Trump's global tariff strategy. Trump's announcements seemed certain to make that task harder. The trip has been seen as part of a renewed U.S. focus on the Indo-Pacific and an effort to look beyond conflicts in the Middle East and Europe that have consumed much of the Trump administration's attention. "Top topics that he's going to want to hit, obviously, are to reaffirm our commitment to East Asia, to ASEAN, to the Indo-Pacific, and not just ... for its own sake," a senior State Department official told reporters. "I think a key message that the secretary likes to deliver is that we're committed, and we prioritize it because it is in America's interests, right? It promotes American prosperity and it promotes American security." The official said Rubio would be prepared to discuss trade, including reiterating that the need to rebalance U.S. trade relationships is significant and echoing messages from the White House and the U.S. Trade Representative. ASEAN countries have been nervous about Trump's tariffs and questioned the willingness of his "America First" administration to fully engage diplomatically and economically with the region. "There is a hunger to be reassured that the U.S. actually views the Indo-Pacific as the primary theater of U.S. interests, key to U.S. national security," said Greg Poling, director of the Southeast Asia Program at Washington's Center for Strategic and International Studies. On Sunday, Trump said the U.S. was close to finalizing several trade pacts and would notify other countries by July 9 of higher tariff rates. He also sent a message to the BRICS group of developing nations as its leaders met in Brazil, threatening an additional 10% tariff on any that align themselves with "anti-American" policies. The BRICS countries include Indonesia, as well as China and India. Last week, Trump announced he had reached a trade agreement with important Southeast Asian partner and ASEAN member Vietnam and could reach one with India. But he cast doubt on a possible deal with Japan, which is not only Washington's main Asian ally but a major investor in the U.S. Rubio has yet to visit Japan, or South Korea, the other main U.S. ally in Northeast Asia, since taking office in January, even though Washington sees the Indo-Pacific as its main strategic priority given the perceived threat from China. South Korea's presidential security adviser Wi Sung-lac headed to Washington on Sunday for trade and defense talks, with Seoul seeking to head off U.S. tariffs. He aims to meet with Rubio and discuss a possible summit between Trump and President Lee Jae Myung, who took office last month.


Japan Times
17 minutes ago
- Japan Times
Scandal-hit mayor in Shizuoka to resign and seek reelection
Maki Takubo, the mayor of the city of Ito, Shizuoka Prefecture, said Monday that she will resign over allegations that she lied about her academic record, and that she will then seek reelection. At a news conference, Takubo, 55, reiterated that her expulsion from Toyo University has been confirmed by the university, from which she had initially claimed to have graduated. Takubo said she will allow prosecutors to investigate what she claimed to be her diploma and a yearbook, adding that she will then leave office after submitting the items to prosecutors within 10 to 14 days. "Even if I say that (the diploma) is real, it would just be words without solid proof, so I think it would be good to ask prosecutors to draw a conclusion," she said. Earlier on Monday, the Ito city assembly unanimously adopted a resolution urging Takubo to resign. It also unanimously decided to set up a special committee under the local autonomy law to investigate the scandal. Takubo, a former city assembly member, was first elected mayor in May. On Wednesday, she admitted that she did not graduate from Toyo University but was actually expelled.


Yomiuri Shimbun
18 minutes ago
- Yomiuri Shimbun
Japan's Nikkei Stock Average Buoyed by Weak Yen as Trump Tariff Deadline Delayed
TOKYO, July 8 (Reuters) – Japan's Nikkei share average rose on Tuesday, buoyed by a weakening yen and as U.S. President Donald Trump gave an additional three-week grace period for tariff negotiations. The Nikkei .N225 gained 0.2% to 39,679.13 as of 0220 GMT. The broader Topix .TOPX added 0.1%. On Monday, Trump began telling selected trade partners that they will see higher tariff rates from August 1, with the original three-month moratorium on 'Liberation Day' reciprocal levies expiring on Wednesday. Japan will now see a rate of 25%. Prime Minister Shigeru Ishiba said his administration would continue negotiations with the White House to seek a mutually beneficial bilateral deal. Initially touted by Trump's team as a likely early success, talks with Tokyo remain stalled for weeks, largely over a 25% tariff on Japanese auto imports. 'It's very clear that it be will very difficult' to overcome the obstacles to an agreement on autos, said the chief macro strategist at Sumitomo Mitsui DS Asset Management, Masayuki Kichikawa, who sees the 25% duty on the sector sticking. Japan's best outcome would be a lowering of the universal 25% rate to the baseline 10% the U.S. is levying on all trading partners, he said. According to Kichikawa, 'there is no choice other than to wait and see' for now as the July 20 Japanese upper house elections leave Ishiba's team little room to show flexibility in trade negotiations until after the result. Japanese stocks rose on the day even after the tariff announcements, which also included South Korea along with a host of smaller nations, sent Wall Street sliding from record highs. Japan's heavyweight exporters were supported by a sharply weaker yen, with Trump's new tariff rates spurring a broad rally in the U.S. currency overnight. A weaker yen inflates the value of overseas revenues. The chip sector was a standout, with Advantest 6857.T gaining 2.2% and Furukawa Electric 5801.T jumping 7.7%. Automakers advanced, with Mazda 7261.T climbing 2.5% and Toyota 7203.T up 0.5%. However, shares of embattled Nissan 7201.T slumped for a third day, shedding an additional 2.9%.