Trump's Tariffs Likely to Persist Regardless of Legal Outcomes
ICARO Media Group
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President Donald Trump's tariffs, albeit challenged legally, appear to be here to stay in some capacity. Top officials in the Trump administration have already been mulling over alternatives, even before the recent ruling that the President overstepped his authority by leveraging a national emergency to enact most of his import taxes, CNN reports.
"We really do think we have a strong case and will win," a senior administration official stated. "But we do have other tools that can get us to the same exact place we're ready to use if necessary." Among the alternative routes being considered are several trade-related laws that could allow the administration to maintain or introduce new tariffs.
One potential option is using a statute that permits the President to impose tariffs of up to 15% for a maximum of 150 days to address significant balance-of-payments deficits. Presently, the U.S. has a goods trade deficit amounting to $87.6 billion, according to recent Census Bureau figures. Although Trump asserts that large trade deficits indicate unfair treatment of the U.S., many economists argue that they can also signify a robust economy.
Another option under consideration is Section 232 of the Trade Expansion Act, which allows the President to impose higher tariffs on the grounds of national security. This would involve sector-specific investigations, such as the recent probe into critical mineral imports that suggested foreign reliance could undermine U.S. defense capabilities and innovation. Existing tariffs, such as the 25% tariffs on steel and aluminum, already apply under this section and would remain unaffected by the current court rulings.
Additionally, Section 301 of the Trade Act could serve as a tool to investigate and act against countries violating trade agreements or that impose unjustifiable burdens on U.S. businesses. This section was previously employed by Trump to escalate tariffs on Chinese imports and certain European Union goods. While the process entails a longer investigation period, it offers a more permanent tariff implementation compared to the 150-day limit of other measures.
Another lesser-known but severe measure is Section 338, which allows for tariffs up to 50% on imports from countries that engage in discriminatory trade practices against the U.S. Although never executed by any President, Trump's administration could consider this route, bearing in mind the risk of significant retaliation from affected nations.
Despite the legal challenges, administration officials underline that the core strategy remains unchanged. The threat of elevated tariff rates is the administration's key leverage in numerous ongoing bilateral trade negotiations. "President Trump is 100% serious about this," asserted an official, emphasizing the administration's commitment to its tariff-centric approach to trade policy.