These distinguished senators want to raise the cost of low-priced goods by imposing an additional 30% tax on them that people who buy low-priced goods will have to pay (plus, no doubt, an additional sales tax at their local sales tax rates on that 30% tax):
The U.S. Congress is in no mood to put up with further delays by China on relaxing its currency controls, three U.S. senators visiting Beijing said Tuesday.
The bipartisan delegation said the Senate is on the cusp of taking up a long-postponed bill that would slap a 27.5 percent tariff on all Chinese products to compensate for China’s pegged exchange rate. Debate could begin as soon as the end of next week.
Fortunately for the senators, this tax increase won’t affect the cost of high-priced goods that adorn their homes and offices nor the expensive suits they wear. People who improve their domiciles and wardrobes by buying low-priced import goods? Let them eat cake, provided it was baked stateside.
Smoot-Hawley lives!
Don’t have time to comment, but Larry Kudlow put up a good post about the myriad reasons this is a Bad Idea ™ back in July.