US President Donald Trump is preparing to activate new trade authorities following the US Supreme Court’s decision to overturn comprehensive tariffs.
According to two sources close to the matter, Trump is considering implementing a new, broad, or even all, minimum tariff on US trading partners.
The US Supreme Court’s decision today has largely disabled a key tool Trump has used in his global trade war. The annulment of tariffs imposed by the president through a broad interpretation of a decades-old law—on the grounds that the law did not explicitly grant him this authority—has marked a significant setback in the White House’s trade strategy.
Following the decision, it is reported that the White House has been preparing for a possible cancellation scenario for months and developing alternative plans. While it is suggested that Trump may announce the new trade authorizations at a press conference expected today, it has been noted that plans could change. The White House has not commented on the matter.
One of the tools the Trump administration is considering is Section 301 of the 1974 Trade Act. This section authorizes the U.S. government to investigate unfair trade practices and impose tariffs in response. Trump implemented tariffs on China under this section during his first term.
Another option is Section 122 of the 1974 Trade Act. This provision authorizes the president to impose a general base tariff of up to 15 percent on all countries to combat trade deficits. However, these tariffs can only remain in effect for a maximum of 150 days unless extended by Congress. Remarkably, Section 122 has never been used by a US president.
According to sources, Trump’s advisors are considering the option of using both powers simultaneously. The plan is to focus particularly on countries that have not yet signed trade agreements with the US under the Article 301 process.
Although the court ruling limited Trump’s current tariffs, the president still retains a broad set of trade authorities. While the scope and timing of potential new tariffs remain unclear, a new period of uncertainty has begun for the U.S.’s global trading partners.
*This is not investment advice.
