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4w ago

Trump Prepares Backup Tariffs After Court Rejects Emergency Powers

White House advisers are turning to trade statutes that let the president impose short-term balance-of-payments levies or national security tariffs to keep import duties in place.

A container ship waits to berth at the port in Lianyungang, in China's eastern Jiangsu province on May 21.
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Overview

  • The US Court of International Trade on May 28 ruled that President Trump overstepped his authority by using the International Emergency Economic Powers Act to impose global tariffs.
  • An appeals court has temporarily kept the tariffs in effect while reviewing the decision, prompting the administration to prepare alternative legal pathways.
  • Officials are considering Section 122 of the Trade Act to levy up to 15 percent duties for 150 days based on the US’s $87.6 billion goods trade deficit.
  • The White House is also eyeing Section 232 investigations to target specific sectors on national security grounds and Section 301 to retaliate against unfair foreign trade practices.
  • A rarely used provision, Section 338 of the Tariff Act of 1930, is under review for its authority to impose duties up to 50 percent on countries deemed to discriminate against US commerce.