Article Summary –
The Supreme Court struck down President Donald Trump’s broad claims of authority to impose tariffs, but he still retains the ability to impose them using powers from his first term and other statutes such as the Trade Act of 1974 and the Trade Expansion Act of 1962. Trump has previously used Section 301 to impose tariffs on China for unfair trade practices, and Section 232 for national security threats, with each requiring investigations that are controlled by the administration itself. Additionally, the administration could consider invoking Depression-era tariffs under Section 338 of the Tariff Act of 1930, which allows for significant tariffs without an investigation, although this has never been used.
WASHINGTON (AP) — President Donald Trump still holds options for imposing tariffs on imports despite the recent Supreme Court decision overturning nearly universal tariffs he placed last year.
The Justices rejected Trump’s broad claims of authority, but he can still utilize tariff powers from his first term and consider others from the Great Depression era.
“I can’t foresee tariffs ending anytime soon,” said Georgetown trade law expert Kathleen Claussen. “Trump could replicate his current tariff structure using alternative authorities.”
Trump previously claimed expansive powers under the 1977 International Emergency Economic Powers Act (IEEPA), but opponents argued Congress had already delegated such powers through other statutes, with specified limits.
Tariffs are integral to Trump’s foreign and economic policy, with double-digit tariffs justified by longstanding trade deficits declared as a national emergency. Average U.S. tariffs surged from 2.5% to nearly 17% within a year, the highest since 1934, based on Yale University’s Budget Lab.
The president acted solo, even though the U.S. Constitution assigns the power to tax – and impose tariffs – to Congress.
Countering unfair trade practices
The U.S. uses Section 301 of the Trade Act of 1974 to counter “unjustifiable” trade practices and Trump has targeted China with it, citing unfair tactics threatening America’s technological edge. This includes addressing perceived unfair practices in China’s shipbuilding sector.
Section 301 tariffs have no size limits, expiring after four years but extendable. However, an investigation and public hearing are typically needed before implementation.
Experts say Section 301 effectively addresses China but is cumbersome for dealing with the smaller nations targeted by Trump’s reciprocal tariffs.
Targeting trade deficits
The U.S. Court of International Trade ruled against Trump’s reciprocal tariffs, noting Congress limited the White House’s authority over trade deficits to Section 122 of the Trade Act of 1974. This permits tariffs of up to 15% for up to 150 days without requiring an investigation.
Although Section 122 authority has never been used, its potential remains uncertain.
Protecting national security
Trump has utilized Section 232 of the Trade Expansion Act of 1962 to impose tariffs on imports deemed threats to national security. These include levies on steel, aluminum, autos, and more recently, kitchen cabinets and furniture.
Section 232 tariffs require U.S. Commerce Department investigations, which are controlled by the administration, similar to Section 301 cases.
Reviving Depression-era tariffs
The Tariff Act of 1930 authorized tariffs up to 50% on imports from countries discriminating against U.S. businesses. Though Section 338 tariffs have never been implemented, they have served as negotiation leverage.
In September, Treasury Secretary Scott Bessent indicated Section 338 could be considered if emergency powers tariffs were overturned by the Supreme Court.
—
Read More Pennsylvania News
