US Administration Pursues New Tariffs Despite Supreme Court Ruling

New Investigations into Tariffs

In light of the US Supreme Court's decision deeming many of former President Trump's global tariffs illegal, the current administration is not stepping back from imposing tariffs. Instead, it is preparing for a fresh series of national security investigations that may lead to new duties. A report from Bloomberg indicates that these investigations will assess the impact of imports on various sectors, including batteries, cast iron, iron fittings, and electrical grid components.

The planned inquiries will be conducted under Section 232 of the Trade Expansion Act of 1962, which permits the imposition of tariffs on national security grounds, differing from the legal basis that the Supreme Court invalidated. This initiative follows Trump's announcement of a new global tariff after the court's decision to eliminate his previously established duties. Official statements reveal that a 10 percent tariff is set to commence on Tuesday morning.

While the president is likely to maintain these tariffs for a duration of five months, he has expressed intentions to devise alternative import taxes that could compensate for the duties annulled by the court. US Trade Representative Jamieson Greer mentioned last week that the administration is also contemplating investigations under Section 301 of the Trade Act of 1974, which allows the US to impose tariffs in response to unfair trade practices from other nations.

Greer noted that the anticipated investigations would encompass 'most major trading partners' and concentrate on 'issues such as industrial overcapacity, forced labor, pharmaceutical pricing, discrimination against US technology firms, digital goods and services, digital services taxes, ocean pollution, and trade practices related to seafood, rice, and other commodities.' Earlier on Monday, Trump warned via social media that countries trying to exploit the Supreme Court ruling could face increased tariffs. His recent statements underscore his commitment to advancing plans for broad tariffs on imports into the US market, despite the court's limitations on his options.