Trump outlines alternative tariff strategies after Supreme Court ruling

President Donald Trump announced plans to impose a 10% global tariff under a trade law that permits such duties for 150 days, according to his statements Friday. After this period, tariffs can only be extended by Congress, but Trump said he has additional legal options to maintain import taxes.

Trump criticized the Supreme Court’s decision to strike down his tariffs imposed last year on nearly every country, calling the justices ‘fools and lapdogs.’ He expressed confidence that he could still implement tariffs using other laws and regulations, including powers he used during his first term and laws dating back to the Great Depression.

The president pointed to his authority under the 1977 International Emergency Economic Powers Act (IEEPA), which he claimed gives him broad power to impose tariffs. Opponents argued in court that Congress delegated tariff authority to the White House through other statutes with specific limitations. Despite the ruling, Trump maintained that he has strong legal alternatives, including the use of licenses to restrict imports, though he provided few details.

Trump has relied heavily on tariffs during his presidency, citing trade deficits as a national emergency. Since returning to office, the average U.S. tariff has increased from 2.5% in January 2021 to nearly 17%, the highest since 1934, according to Yale University’s Budget Lab. The administration has imposed reciprocal tariffs on most countries, often unilaterally, despite constitutional provisions that assign taxing powers to Congress.

Additionally, Trump reaffirmed plans to use Section 301 of the Trade Act of 1974 to counter what he calls unfair trade practices, particularly against China. The law allows the president to impose tariffs after investigations and public hearings. Trump indicated his administration would launch several new Section 301 investigations, emphasizing its usefulness against China but noting challenges in applying it to smaller countries.

In May, a U.S. court struck down Trump’s reciprocal tariffs, ruling that emergency powers could not be used to address trade deficits. The court clarified that such powers are limited by other statutes, such as Section 122 of the Trade Act of 1974, which permits tariffs of up to 15% for 150 days without investigation. This authority has never been used to impose tariffs, creating uncertainty about its potential application.

Trump also highlighted his use of Section 232 of the Trade Expansion Act of 1962, which allows tariffs on imports deemed a threat to national security. During his terms, he imposed tariffs on steel, aluminum, autos, and other goods, often following investigations by the Commerce Department. These tariffs are not limited by law but require evidence of security threats.

Finally, the president referenced the Depression-era Tariff Act of 1930, which authorized tariffs of up to 50% on imports from countries discriminating against U.S. businesses. While never used, Section 338 of the law could serve as a backup plan, allowing tariffs without investigations or time limits, should other options be blocked. Treasury Secretary Scott Bessent noted in September that the administration was considering this law if courts upheld restrictions on emergency tariffs.

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