Donald Trump’s government is accelerating a new strategy to maintain tariff revenue. The Supreme Court in February invalidated the broader levies imposed under the International Emergency Economic Powers Act (IEEPA). The decision forced the Treasury to refund billions to importers.
After the ruling, the administration turned to Section 122 of the Trade Act of 1974. This rule allows global tariffs of 10%, but only for 150 days. The deadline expires on July 24. For this reason, the White House is seeking more permanent measures under Section 301, which authorizes sanctions against countries with unfair practices.
International trade specialists believe that the government will manage to implement the new tariffs before the deadline. Trump has already announced 25% tariffs on imports from Brazil. In addition, it maintains investigations into the trade practices of dozens of countries to justify new taxes under the current legal framework.
Revenue from tariffs reached a maximum of $31 billion last October. But they fell after the Court’s resolution. A slight deficit was recorded in May. In June, losses amounted to $25.6 billion, because refunds exceeded the collection of levies still in force.
Section 301 offers a stronger legal basis. However, analysts warn that establishing universal tariffs with this standard could face new legal challenges. Uncertainty over US trade policy continues to cause concern among companies and investors. They expect greater clarity on international trade rules in the coming months.
