Trump pivots to temporary import taxes

President Donald Trump is using a temporary 10% import surcharge to replace the broader tariffs the Supreme Court struck down in February. (abcnews.com) (whitehouse.gov) The White House imposed the surcharge on February 20 under Section 122 of the Trade Act of 1974, a law that allows tariffs of up to 15% for no more than 150 days unless Congress extends them. (whitehouse.gov) (federalregister.gov) Customs and Border Protection said the new duty took effect February 24 and runs through July 24, replacing the invalidated emergency tariffs with a narrower legal tool. (content.govdelivery.com) (politico.com) Now the administration is trying to convert that short-term fix into something that lasts. The Office of the U.S. Trade Representative began hearings this week in Section 301 investigations that could produce new tariffs on trading partners it says tolerate forced labor or overproduction. (abcnews.com) One case covers 60 economies that account for 99% of U.S. imports, and a second covers 16 trading partners including China, the European Union and Japan. Tax Foundation economist Erica York told AP the second group accounts for 70% of U.S. imports. (abcnews.com) The legal shift follows a Supreme Court ruling in February that said the International Emergency Economic Powers Act does not authorize tariffs. That wiped out Trump’s fastest trade weapon but left other tariff laws, including Section 301 and Section 232, in place. (cfr.org) (grantthornton.com) Importers are already trying to recover money paid under the voided tariffs. General Motors said this week it expects a $500 million refund from duties the court struck down. (apnews.com) The politics are colliding with China policy ahead of Trump’s planned May 14-15 summit in Beijing with President Xi Jinping. On Tuesday, 73 House Democrats led by Representative Debbie Dingell urged Trump to keep Chinese carmakers out of the U.S. market. (scmp.com) Their letter warned that lowering barriers for Chinese vehicles would threaten American manufacturing, supply chains and national security. Trump had said in January he was open to Chinese automakers building factories in the United States and hiring American workers. (scmp.com) The result is a trade policy that is less immediate than the one the court rejected but potentially harder to unwind. The temporary surcharge expires in July, and the replacement tariffs now moving through hearings would rest on statutes that require more procedure and give the White House a sturdier record for the next court fight. (abcnews.com) (cfr.org)