Pence group lashes out at Trump tariffs ahead of 'Liberation Day' event: 'Tax on American consumers'
Former Vice President Mike Pence's policy advocacy organization came out against President Donald Trump's "Liberation Day," arguing his tariff plans "are essentially a tax on American consumers and businesses."
In a post on X on Wednesday, along with a letter to Congress, the group Americans Advancing Freedom (AAF) stated the tariffs "are essentially a tax on American consumers and businesses." This marks one of the rare occasions when the group, founded in 2021 based on the principles of Trump's first term, has opposed his policies.
"Congress has a constitutional responsibility to reclaim its authority over taxation," AAF's general counsel Marc Wheat wrote in the letter.
Wheat said Congress could achieve this by passing Sen. Mike Lee's Article One Act, which was introduced in 2023 under the Biden administration. The bill would require Congress to approve national emergency declarations declared by the president within 30 days as well as place other barriers around such orders.
"The Framers knew from experience the dangers of abuse of the taxing power," Wheat wrote.
Trump is expected to roll out his plan for reciprocal tariffs, which would impose higher taxes on countries that export goods to the U.S. on Wednesday afternoon, dubbing it "Liberation Day."
"April 2, 2025, will go down as one of the most important days in modern American history," White House press secretary Karoline Leavitt said during Tuesday's White House press briefing. "Our country has been one of the most open economies in the world, and we have the consumer base, hands down – the best consumer base. But too many foreign countries have their markets closed to our exports. This is fundamentally unfair."
"The lack of reciprocity contributes to our large and persistent annual trade deficit that's gutted our industries and hollowed out key workforces," she continued. "But those days of America, beginning tomorrow, being ripped off, are over. American workers and businesses will be put first under President Trump, just as he promised on the campaign trail."
The White House has been discreet about Trump's planned tariff announcement, only explaining reciprocal tariffs will restore fairness to U.S. trading after decades of disproportionate trade deals with other countries.
"I think it's going to be something that's going to bring a lot of wealth back to our country, tremendous wealth back to our country, actually," Trump told the media Monday. "And, other countries are understanding, because they've been ripping us for 50 years, longer."
Trump and his administration said the tariff plan will boost business in the U.S. by encouraging companies to establish operations on American soil to bypass the tariffs, thereby creating job opportunities for American workers.
In February, Trump signed executive orders imposing 25% tariffs on most goods imported from Canada and Mexico – citing national security concerns related to drug trafficking and illegal immigration – with Canadian oil and energy exports facing a 10% tariff.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Upturn
11 minutes ago
- Business Upturn
Ahmedabad Air India Plane Crash: Former Gujarat CM Vijay Rupani confirmed dead
In a heartbreaking development, it has now been reportedly confirmed that former Gujarat Chief Minister Vijay Rupani was among the victims of the Air India flight AI171 crash near Ahmedabad on Wednesday, June 12. Parimal Nathwani, Member of Parliament in the Rajya Sabha, had earlier posted a condolence message on social media confirming the demise of former Gujarat Chief Minister Vijay Rupani in the tragic Air India plane crash near Ahmedabad. However, the tweet was subsequently deleted, sparking speculation and raising questions about the official status of Rupani's presence on the flight and his condition. Authorities have yet to release an official confirmation, and the situation remains unclear. Rupani, along with several members of his team, was onboard the Boeing 787 Dreamliner aircraft that was operating the Ahmedabad to London (Gatwick) route. The plane crashed shortly after takeoff from the Sardar Vallabhbhai Patel International Airport, falling in the Meghani Nagar area, causing a massive blaze and widespread destruction. Initial reports had speculated Rupani's presence on the passenger manifest, which was later verified by both state authorities and Air India sources. The confirmation marks a deep political and personal loss for the state and the country. Rupani, a prominent BJP leader, served as Gujarat's Chief Minister from 2016 to 2021. As per official data, the aircraft was carrying 242 individuals, including 53 British nationals, 169 Indian nationals, 1 Canadian, and 7 Portuguese citizens. The Directorate General of Civil Aviation (DGCA) confirmed the plane gave a MAYDAY call moments after takeoff but failed to respond thereafter. The Indian government has initiated a high-level inquiry into the incident, and Prime Minister Narendra Modi has dispatched senior ministers to oversee the response efforts in Ahmedabad. More updates are awaited as rescue and recovery operations continue. Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Business of Fashion
14 minutes ago
- Business of Fashion
Surprise! Why Apparel Prices Are Actually Falling
A little over a month into President Donald Trump's new tariff regime, the verdict is in: Clothes are getting cheaper. The US Bureau of Labor Statistics on Wednesday reported that apparel prices fell 0.4 percent between April and May, and were down 0.9 percent from a year prior. Inflation overall was estimated at 2.4 percent, in line with expectations. The data likely reflects pain delayed rather than avoided. Many retailers stocked up before Trump announced a 10 percent tariff on all imports, as well as an additional 30 percent levy on Chinese goods. Inflation figures also don't account for hikes that were announced but have yet to kick in. E.l.f. Cosmetics, LVMH, Nike and many others have said they plan to raise prices this summer. But the downward trend speaks to another truth about fashion's approach to pricing: The tariffs came at a time when brands were already working overtime to convince reluctant shoppers to keep spending. Rather than pass along costs, many companies' instinct is to explore every other option first. Urban Outfitters, Gap and Abercrombie & Fitch fall in that camp, saying they'll hold off on increasing prices even as they warn of shrinking margins. And for brands that engaged in years of post-pandemic price hikes, discounting even in the face of tariffs is still the best way to win back customers. Many luxury labels fall in this category, though plenty of mass-market brands are more expensive than they used to be, too. 'Retailers don't want to scare consumers or the market and suggest they're [raising] prices,' said Sonia Lapinsky, partner at retail consultancy Alix Partners. 'They're refraining as much as possible, they're not talking as much as possible.' Fashion's Falling Prices Apparel prices fell month on month between April and May, and nearly 1 percent in May year on year. The rate of price increases began slowing in 2023, and then declining early this year. This doesn't account for the full impact of tariffs on retailers' margins, which won't be realised until late summer or fall. That is when prices could get 'wildly volatile,' because of brands' individual approaches to pricing in the face of rising costs, said Michael Prendergast, managing director of Alvarez & Marsal Consumer and Retail Group. Some brands will look at this moment as a time to sacrifice margin to gain market share. With expanded margins, thanks to years of rising prices, many retailers are well positioned to absorb the impact. For now brands are doing everything in their power to keep people shopping and drive traffic, said Lapinsky, including upping discounting throughout April and May. Beyond categories like footwear that are highly susceptible to tariffs, brands will get specific about where they raise prices — fashion items may have elasticity, but shoppers would see a more obvious change in basic pieces, for example. Likely, after years of experimenting, brands have learned where their limits are. Planning for the rest of the year is filled with extra risk. Raise prices too much, and kill demand; plan for lower demand and potentially end up with empty shelves. That conundrum will likely come to a head for retailers during back-to-school shopping season. 'We're likely going to have an inventory issue on one end or the other,' said Lapinsky. 'Either we've got inventory in the stores that had to be priced at a point that they can't clear, or retailers may have pulled back and just don't have what customers are looking for.' Mood-Swing Shopping As they make inventory and pricing decisions for the rest of the year, retailers are watching consumer sentiment closely to try to determine whether they'll have the appetite to spend — and to what degree. 'You have to be cautious of exactly what inventory you're taking in, given consumer sentiment and how much they're shopping,' said Jessica Ramírez, co-founder of research firm The Consumer Collective. 'If you're just churning inventory that isn't a priority on your consumers' list, you're not going to do very well.' After falling to its lowest point in years, consumer sentiment got a slight boost in May. Part of that may be thanks to a comparative settling of the news cycle from April, when Trump first announced, and then temporarily paused, levies. But even just the feeling of rising prices and uncertainty can put a damper on shoppers' moods. Plus, more generally, price inflation in other categories will have an impact on consumer appetite to spend on apparel. 'Food and gas prices affect discretionary income,' said Prendergast. 'Gas prices are coming down, that's the good news. The not great news is food continues to rise — that pinches the wallet.' Trouble is Brewing Elsewhere The picture of softened demand is clearer in China, the second biggest fashion market after the US. Earlier this month, China reported consumer prices overall — not just apparel — fell for a fourth consecutive month in May, raising concerns that deflation is here to stay. Meanwhile, wage shrinkage and property value slumps continue. It's already having an impact on fashion, reported Reuters: Amid raging price wars, stores are putting merchandise on steep discount — $30 for a Coach handbag at Super Zhuanzhuan, for example. US-based apparel companies operating in China will face more uncertainty in an already challenged market. Trouble abroad could even be felt back home. 'The more that's happening in the macro, the more concerned the consumer in America is going to be,' said Lapinsky. 'We don't see any end to that in the next few months.' Though, starting in March, China began ramping up fiscal stimulus. And much remains to be seen about how the Chinese consumer will react, said Ramírez. Fashion is still in a wait-and-see phase when it comes to price hikes and planning, but the moment of truth could be getting closer. 'Overall retailers are underplaying the effect of what tariffs and inflation are going to do to their sales and EBITDA,' said Prendergast. 'We're advising clients, take the next two years of your revenue and margin plans down, like, take them down and again, use this opportunity to cut costs internally.'
Forbes
14 minutes ago
- Forbes
Japan's Largest Companies 2025: Rare Interest Rate Hikes Lead To A Volatile Year
Toyota and other Japanese automakers have been hampered by Trump's tariffs. Getty Images Japan's stock market has been on a roller-coaster ride over the past 12 months. Its benchmark Nikkei index reached an all-time high in July 2024, driven by corporate governance reforms and robust company earnings, then crashed more than 25% in less than four weeks on a surprise interest rate hike by the Bank of Japan. Though the index rebounded shortly after, its gains were trimmed in early 2025 as U.S. President Donald Trump ignited his trade war. Japan has 180 companies on this year's Forbes Global 2000 ranking of the world's largest public corporations, down slightly from 182 in 2024, making it the third most-represented country after the U.S. and China. The list weighs market value, revenue, profit and assets equally, using the latest 12 months of data as of April 25. Toyota Motor, the highest-ranking Japanese company, is in a sector particularly hard hit by Trump's sweeping tariffs. The U.S. in early April imposed a 25% tax on foreign-made cars, followed in early May by the same levy on auto parts, a blow to Japan's mainstay industry and its export-led economy. The world's top-selling carmaker slipped three places to No. 14 after its stock tumbled 22% over the year. Though its revenues and profits in the year through December were roughly flat at $309 billion and $34 billion, respectively, Toyota warned that the tariffs would result in a $1.3 billion hit to operating profit in April and May. Some of Toyota Motor's peers suffered even steeper declines. Nissan Motor, long plagued by deteriorating financials, sank 366 spots to No. 707 after its profit in the 12 months through December plunged 76% to $702.6 million. After the cut-off date for the list, the automaker posted a $4.7 billion loss for the three months ended March. Nissan is struggling to restructure after merger talks with larger rival Honda Motor collapsed in February. The failed tie-up, together with the tariffs, relegated Honda to No. 117 from No. 91 as its stock fell 17% over the year. Mitsubishi Motors, whose biggest shareholder is Nissan, tumbled 379 places to No. 1,562 as its shares skidded almost 10%. Companies in the AI space were a bright spot. Billionaire Masayoshi Son's SoftBank investment powerhouse climbed 331 spots to No. 130 on a 425% surge in 12-month profit through December to $5.6 billion, driven partly by increases in the value of portfolio companies such as ByteDance, the Chinese parent of TikTok. SoftBank is ramping up its AI bet, with plans to invest up to $30 billion in U.S.-based ChatGPT maker OpenAI while also investing $100 billion to build AI infrastructure stateside as part of its Stargate Project joint venture with OpenAI and Oracle. The AI boom also lifted Advantest, the world's largest semiconductor testing equipment maker by market share and a supplier to AI-chip giant Nvidia. It scaled 509 places to No. 1,231 as its profit in the year through March more than doubled to $1.1 billion on a 52% surge in sales to $5.1 billion. Other notable climbers included companies in the defense industry. IHI Corp, Mitsubishi Heavy Industries (MHI) and Kawasaki Heavy Industries (KHI) were among the best performers on the Nikkei over the year as Japan ramped up military spending. IHI, an engineering company that makes everything from turbines for power plants to rocket systems for space travel, debuted on the Global 2000 at No. 1,349 after its stock skyrocketed 176%. A more than doubling in MHI stock elevated the company 75 spots to No. 372 while KHI vaulted 513 places to No. 1,331 on a 52% share increase.
