Trump stretches tariff authority via 301

Section 301 of the Trade Act of 1974 is moving from a case-by-case trade remedy toward a broader instrument of U.S. tariff policy under President Donald Trump, according to legal and trade reporting published this week. A Hill opinion essay published on May 21 said the administration’s court filing in litigation over earlier China tariffs argues for presidential tariff authority with few practical limits. At the same time, U.S. trading partners are adjusting around that risk rather than waiting for a broader settlement. The European Union has approved a deal capping most exports at a 15% tariff, Germany’s surplus with the United States has narrowed, and Canada remains stuck in difficult talks with Washington. ### What is changing in the way Section 301 is being used? Section 301 was used in Trump’s first term to impose tariffs on China after the U.S. trade representative found unfair trade practices, including on technology transfer and intellectual property, according to CBS News and CNBC. New Section 301 investigations announced in March indicate the administration is again treating the statute as a central tariff vehicle after limits on other emergency-style authorities. (thehill.com) The Hill article said the administration’s legal position would stretch Section 301 beyond a temporary response to identified foreign practices and toward something closer to continuing executive tariff authority. That characterization comes from the article’s author, not from a court ruling, but it reflects the dispute now surrounding the administration’s approach. (cbsnews.com) ### Why did the European Union accept a 15% tariff cap? The European Union approved a tariff arrangement with Washington this week that caps tariffs on most EU exports at 15%, according to Associated Press and other reports. The deal was framed by European officials as a way to avoid steeper U.S. duties before Trump’s July 4 deadline. (thehill.com) Brussels also moved on legislation to remove import duties on U.S. goods, Reuters reporting carried by other outlets said. European Commission President Ursula von der Leyen has described the broader 2025 political agreement with Trump as a step to restore stability and predictability for businesses, according to the Commission’s trade page. (apnews.com) ### What evidence is there that tariffs are already changing trade flows? Germany’s Federal Statistical Office said on May 21 that the country’s goods trade surplus with the United States fell to 12.4 billion euros in the first quarter of 2026 from 17.7 billion euros a year earlier. Destatis said the surplus shrank after the United States imposed high tariffs on many imports in 2025, including motor vehicles from Europe. (msn.com) Yahoo Finance, citing the same official figures, reported that higher Trump tariffs were cutting into transatlantic flows. Germany has run a goods surplus with the United States for more than three decades, making the first-quarter drop a closely watched indicator of how tariffs are affecting one of Europe’s largest export relationships. (destatis.de) ### Why are Canada-U.S. talks still stuck? Yahoo News Canada reported on May 21 that Prime Minister Mark Carney and Trump remain at an impasse in trade negotiations, with disagreements spanning dairy access, digital rules and North American content requirements. The report said Ottawa also faces domestic political constraints in sectors including autos and supply management. (finance.yahoo.com) Politico reported earlier this month that talks deteriorated over autos after a brief period of momentum. That leaves Canada heading toward a July 1 review point without a clear resolution, according to the Yahoo report cited in the briefing. ### What happens next? July 1 is the next review point in the Canada-U.S. track, according to Yahoo News Canada. (ca.news.yahoo.com) July 4 is the deadline hanging over the EU’s effort to complete legislation needed to keep its trade arrangement with Washington in place and avoid higher U.S. tariffs, according to AP and Reuters-based reports. (politico.com)