Trump pursues new import taxes to replace the tariffs the Supreme Court rejected

Key Points:

• Following the Supreme Court's February ruling that invalidated his use of the International Emergency Economic Powers Act (IEEPA) for tariffs, President Trump is pursuing new tariffs under Section 301 of the Trade Act of 1974 to maintain protectionist trade policies and revenue for the U.S. Treasury.
• The Office of the U.S. Trade Representative is conducting hearings on forced labor in 60 economies and overproduction by 16 major trading partners, including China, the EU, and Japan, which could lead to new tariffs affecting 70-99% of U.S. imports.
• Unlike the IEEPA tariffs struck down by the Supreme Court, Section 301 tariffs have no size limit and can be extended beyond their four-year term, offering a more legally robust mechanism for imposing tariffs despite expected legal challenges.
• Critics and importers express concern over the expedited investigation process, fearing it may be a rushed effort to reinstate tariffs quickly before current temporary levies expire in July, with some calling the investigations a “sham.”
• While Section 122 tariffs currently in place will expire soon, Congress is unlikely to extend them due to voter dissatisfaction with high prices linked to tariffs; the administration views Section 301 tariffs as a more durable alternative to sustain its trade agenda.