Trump pursues new import taxes

Tariffs are back in the room again — but in a different legal wrapper. After the Supreme Court knocked out Donald Trump’s broad emergency-law tariffs in February, the White House slapped on a temporary 10% import surcharge under Section 122 and started looking for something sturdier. This week, that next phase began. The Office of the U.S. Trade Representative opened hearings that could become the legal basis for a new, more durable round of tariffs. (halifax.citynews.ca) ### What changed this week? The concrete news is the hearings. USTR scheduled April 28 and April 29 hearings on Section 301 investigations into whether 60 economies fail to effectively block imports made with forced labor. Then it is moving into a second Section 301 track aimed at 16 trading partners accused of creating structural manufacturing overcapacity. Those investigations are the administration’s path to replacing the tariffs the Court threw out. (ustr.gov) ### Why not just keep the old tariffs? Because the Supreme Court said Trump could not use the International Emergency Economic Powers Act — IEEPA — to impose tariffs in the first place. That ruling wiped out a big chunk of the tariff architecture he had built in his second term, including the “reciprocal” duties and separate levies aimed at China, Canada, and Mexico. So the administration had to pivot fast. (news.bloomberglaw.com) ### What is the stopgap now? The stopgap is Section 122 of the Trade Act of 1974. Trump used it right after the February ruling to impose a flat 10% levy on many imports. But Section 122 is temporary by design — it expires after 150 days unless Congress acts — which is why the administration is racing to stand up a more durable replacement before the summer deadline. That temporary tariff is also already being challenged in court by 24 states and private plaintiffs. (news.bloomberglaw.com) ### Why is Section 301 the sturdier option? Section 301 is slower, but it is a much more familiar trade weapon. It requires an investigation, a record, public comments, and hearings. That makes it harder to roll out overnight, but easier to defend later. Trump used Section 301 in his first term against China, and those tariffs survive(news.bloomberglaw.com)a legal improvisation. (halifax.citynews.ca) ### Who is in the crosshairs? A lot of the world. The forced-labor case covers 60 economies and, by AP’s count, touches 99% of U.S. imports. The overcapacity case covers 16 economies — including China, the European Union, Japan, India, Mexico, South Korea, Taiwan, Vietnam, Thailand, Malaysia, Indonesia, Bangladesh, Cambodia, Singapore, Switzerland, and Norway. Many major trading partners appear in both buckets. (halifax.citynews.ca) ### Does this mean new tariffs are guaranteed? Not formally. USTR says the hearings are part of an investigation and the outcomes are not pre-judged. But the broader posture is pretty clear. Treasury Secretary Scott Bessent said the government intends to replace the lost tariff revenue with new import taxes, including duties imposed through Section 301. So the process is legalistic, but the direction is not subtle. (halifax.citynews.ca) ### What’s the catch for companies? The catch is uncertainty. Importers now have to plan around at least three moving pieces at once — the temporary Section 122 tariff, the court challenge to that tariff, and the possibility of new Section 301 duties layered by country or product. That is rough for retailers, manufacturers, and Asian exporters especially, because supply chains are built months ahead, not after hearings end. (freightfigures.com) ### Bottom line? Trump did not lose the tariff fight when the Supreme Court rejected his favorite shortcut. He lost the shortcut. What started this week is the rebuild — slower, narrower, and probably tougher to challenge, but still messy enough to keep businesses guessing. (halifax.citynews.ca)