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CBS News
2 days ago
- Business
- CBS News
As Trump's tariffs face legal challenge, here are some of his other trade policy options
Legal whirlwind over Trump's tariffs is not over, could continue for months The Trump administration could pursue alternative pathways for imposing tariffs after a federal court this week struck down its use of emergency powers to enact broad levies on U.S. trading partners, according to experts. At risk is much of Mr. Trump's trade agenda, which relies on tariffs as a way to secure better terms of trade, boost the U.S. manufacturing sector and generate what he claims could be trillions in new federal revenue. For now, Mr. Trump's tariffs remain in place after a federal appeals court in Washington, D.C., on Thursday temporarily halted the decision, reinstating the levies. If the trade court's ruling is ultimately upheld, Mr. Trump has other tools for pursuing his trade agenda, although they don't provide the broader authority of the International Emergency Economic Powers Act (IEEPA), which he tapped to authorize trade duties on almost every foreign nation. "He would have a couple other authorities. However, they are not nearly as broad and aggressive as the IEEPA tariffs," said Clark Packard, a research fellow in the Herbert A. Stiefel Center for Trade Policy Studies at the Cato Institute, a nonpartisan public policy institute. "There are so many checks and administrative aspects to them that they are slower." Mr. Trump announced his tariffs on April 2 in an initiative he referred to as "Liberation Day." At the time, the president described trade deficits with other nations as "a national emergency," which he said gave him the authority to impose tariffs under IEEPA. But a lawsuit filed by five U.S.-based companies and a group of 12 states challenged the president's use of the emergency powers law, and on Wednesday the Court of International Trade blocked the tariffs. President will use "tools at his disposal" As the legal process plays out, Trump administration officials say the president is considering using other tools at his disposal to advance his trade policies. "The Trump administration remains committed to addressing our country's national emergencies of drug trafficking and historic trade deficits with every legal authority conferred to the President in the Constitution and by Congress," White House spokesperson Kush Desai said in a statement to CBS News on Thursday. Desai added, "Regardless of the developments of this litigation, the President will continue to use all tools at his disposal to advance trade policy that works for all Americans." Here are the other options Mr. Trump could turn to, and how he could use them, according to policy experts. Section 232 tariffs of the Trade Expansion Act of 1962 Experts say Mr. Trump could turn to Section 232 of the Trade Expansion Act of 1962, which allows the U.S. president to restrict imports in the name of national security. Mr. Trump already has tariffs in place on steel, aluminum and auto imports based on this regulation. There's a catch, though. The statute requires the Department of Commerce, in consultation with the Department of Defense, to investigate and confirm that imports "threaten to impair" U.S. national security before the president can invoke Section 232. An investigation can take up to 270 days, which could slow down Mr. Trump's timeline for imposing tariffs. "It has to withstand legal scrutiny, it can't just be done over the weekend," Packard said. Additionally, under Section 232, tariffs can only be applied to specific sectors if the trade around those imports threaten national security, rather than the broad approach that Mr. Trump used with IEEPA. "Once the report is issued, the president has wide discretion, but he has to target individual sectors of product, like steel and aluminum," Packard said. "They can't be blanket, across-the-board tariffs." Some experts think Mr. Trump is likely to turn to this statute to further his tariff agenda. "In our view, the administration will prepare the groundwork for a more surgical increase in tariffs beginning this summer following Section 232 trade investigations into strategic industries like pharmaceuticals, critical minerals, lumber, copper and semiconductors," Kurt Reiman, head of fixed income Americas at UBS Global Wealth Management, said in a research note. He added, "These sectors were initially excluded from the 10% baseline tariff because President Trump had intended to levy separate tariffs to reduce the U.S.'s reliance on foreign producers of these products by encouraging domestic production." Section 301 of the Trade Act of 1974 Mr. Trump could also draw on the Trade Act of 1974 to impose new tariffs. Section 301 of that law allows the U.S. president to apply county-based tariffs at a rate of his choosing if the U.S. Trade Representative determines that another country is engaging in unfair foreign trade practices. There are limitations, however. The law can't be applied universally to all imports from foreign nations. "There has to be justification for it, so President Trump can't unilaterally decide to impose broad-based tariffs on the entire world," Angela Santos, a partner and customs practice leader at law firm ArentFox Schiff told CBS MoneyWatch. Section 122 of the Trade Act of 1974 Additionally, Mr. Trump could use Section 122 of the Trade Act of 1974, which is designed to address large trade deficits with other nations, to impose tariffs of up to 15% for a maximum of 150 days. "I could see this being employed very easily," Santos said. "It seems like the easiest way to impose tariffs, particularly because most trade partners have large deficits with the U.S." Applying tariffs under Section 122 wouldn't require an investigation, meaning Mr. Trump could quickly use it to assess a broad-based import duty. "The administration could quickly replace the 10% across-the-board tariff with a similar tariff of up to 15% under Sec. 122," Goldman Sachs analysts wrote in a report this week. The tariffs could be in effect "within days if deemed necessary," Goldman Sachs said. Congressional action would be needed to extend the tariffs after 150 days. Section 338 of the Tariff Act of 1930 Under Section 338 of the Tariff Act of 1930, the president can impose tariffs of up to 50% on imports from countries that discriminate against the U.S. The law defines discrimination as when a trading partner's laws, import duties, regulations or other restrictions place the U.S. at a disadvantage. These tariffs differ from Section 301 levies in that the tariff rate is capped at 50%. Additionally, no formal investigation is required. The authority has never been used, according to experts.
Yahoo
3 days ago
- Business
- Yahoo
Trump Aims to Boost Taiwan Arms Sales Further, Reuters Says
(Bloomberg) -- President Donald Trump is planning to ramp up weapons sales to Taiwan to a level exceeding the pace set during his first term, Reuters reported, a move that risks escalating military tensions with China at a time the two nations are already locked in difficult talks over tariffs. NYC Congestion Toll Brings In $216 Million in First Four Months Now With Colorful Blocks, Tirana's Pyramid Represents a Changing Albania The Economic Benefits of Paying Workers to Move NY Wins Order Against US Funding Freeze in Congestion Fight Why Arid Cities Should Stick Together Two US officials familiar with the matter said they expect US approvals for arms sales to Taipei over the next four years to surpass those in Trump's first term, according to a Reuters report Friday. New weapons packages are expected to focus on missiles, munitions and drones. Trump's first term was marked by 22 military sales notifications for Taiwan valued at $18.65 billion, including backlogged cases and funding for maintenance of existing systems, compared to about $8.7 billion during the Biden administration, according to a 2024 report from the Cato Institute. Washington's move could inflame tensions with Beijing just as bilateral frustration is flaring up again over trade, student visas and access to technology. Beijing considers democratically governed Taiwan to be its territory. Taiwan Foreign Ministry spokesman Hsiao Kuang-wei declined to comment on the report but said the government has 'repeatedly underscored Taiwan's determination to strengthen its self-defense capabilities.' Taipei would 'also continue to work closely with the US to strengthen regional deterrence and ensure peace, stability, and prosperity in the region,' he said. Chinese Foreign Ministry spokesman Lin Jian said his nation opposes US weapons sales to Taiwan and they should cease. Washington should 'stop creating new factors that could lead to tensions in the Taiwan Strait,' he added at the regular press briefing in Beijing on Friday. The White House and the State Department didn't immediately reply to a request for comment made outside working hours in the US. The news comes as US Defense Secretary Pete Hegseth visits Singapore for an annual defense forum where he's set to rally allies and partners to counter China. Beijing is sending a lower-level delegation to the Shangri-La Dialogue, avoiding a potential encounter with Hegseth. US-China relations had been on the mend since both sides reached a temporary trade truce in Geneva earlier this month. But that began to change in recent days, with the US announcing it would start revoking some Chinese student visas. Washington has also introduced new restrictions on the sales of chip design software and reportedly some jet engine parts to China. That came shortly after it sought to block Huawei Technologies Co. from selling advanced AI chips anywhere in the world, prompting an angry rebuke from Beijing. Read: Taiwan Says US Trade-Deal Push Still On Despite Court Ruling US Treasury Secretary Scott Bessent, who helped reach the truce with Beijing officials, said Thursday that trade talks with China are 'a bit stalled' and could benefit from a direct call between Trump and Chinese President Xi Jinping. Any arms sales from the US to Taiwan would prompt an outcry from China. In 2019, Beijing protested against the Trump administration's tacit approval for Taiwan to buy dozens of F-16 fighter jets. --With assistance from Jordan Fabian, Derek Wallbank, Colum Murphy and Yian Lee. (Updates with comment from Taiwan's Foreign Ministry.) YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Mark Zuckerberg Loves MAGA Now. Will MAGA Ever Love Him Back? Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Inside the First Stargate AI Data Center How Coach Handbags Became a Gen Z Status Symbol ©2025 Bloomberg L.P. Sign in to access your portfolio
Mint
3 days ago
- Business
- Mint
Trump Aims to Boost Taiwan Arms Sales Further, Reuters Says
President Donald Trump is planning to ramp up weapons sales to Taiwan to a level exceeding the pace set during his first term, Reuters reported, a move that risks escalating military tensions with China at a time the two nations are already locked in difficult talks over tariffs. Two US officials familiar with the matter said they expect US approvals for arms sales to Taipei over the next four years to surpass those in Trump's first term, according to a Reuters report Friday. New weapons packages are expected to focus on missiles, munitions and drones. Trump's first term was marked by 22 military sales notifications for Taiwan valued at $18.65 billion, including backlogged cases and funding for maintenance of existing systems, compared to about $8.7 billion during the Biden administration, according to a 2024 report from the Cato Institute. Washington's move could inflame tensions with Beijing just as bilateral frustration is flaring up again over trade, student visas and access to technology. Beijing considers democratically governed Taiwan to be its territory. Chinese Foreign Ministry spokesman Lin Jian said his nation opposes US weapons sales to Taiwan and they should cease. Washington should 'stop creating new factors that could lead to tensions in the Taiwan Strait,' he added at the regular press briefing in Beijing on Friday. The White House and the State Department didn't immediately reply to a request for comment made outside working hours in the US. The news comes as US Defense Secretary Pete Hegseth visits Singapore for an annual defense forum where he's set to rally allies and partners to counter China. Beijing is sending a lower-level delegation to the Shangri-La Dialogue, avoiding a potential encounter with Hegseth. US-China relations had been on the mend since both sides reached a temporary trade truce in Geneva earlier this month. But that began to change in recent days, with the US announcing it would start revoking some Chinese student visas. Washington has also introduced new restrictions on the sales of chip design software and reportedly some jet engine parts to China. That came shortly after it sought to block Huawei Technologies Co. from selling advanced AI chips anywhere in the world, prompting an angry rebuke from Beijing. Read: Taiwan Says US Trade-Deal Push Still On Despite Court Ruling US Treasury Secretary Scott Bessent, who helped reach the truce with Beijing officials, said Thursday that trade talks with China are 'a bit stalled' and could benefit from a direct call between Trump and Chinese President Xi Jinping. Any arms sales from the US to Taiwan would prompt an outcry from China. In 2019, Beijing protested against the Trump administration's tacit approval for Taiwan to buy dozens of F-16 fighter jets. With assistance from Jordan Fabian, Derek Wallbank and Colum Murphy. This article was generated from an automated news agency feed without modifications to text.
The Star
3 days ago
- Business
- The Star
U.S. stocks close higher on firm Nvidia earnings
NEW YORK, May 29 (Xinhua) -- U.S. stocks ended higher on Thursday, as investors digested Nvidia's earnings results and continued to navigate ongoing tariff-related uncertainty. The Dow Jones Industrial Average rose 117.03 points, or 0.28 percent, to 42,215.73. The S&P 500 added 23.62 points, or 0.40 percent, to 5,912.17. The Nasdaq Composite Index increased by 74.93 points, or 0.39 percent, to 19,175.87. Ten of the 11 primary S&P 500 sectors ended in green, with real estate and health leading the gainers by adding 0.95 percent and 0.74 percent, respectively. Meanwhile, communication services bucked the trend by losing 0.35 percent. Later in the day, a federal appeals court reinstated U.S. President Donald Trump's broad tariffs, at least temporarily, overturning a lower court's ruling on Wednesday that had blocked them on the grounds that their implementation process was "unlawful." "The chances for a major slowdown because of the tariffs or a major consumer price increase definitely have gone down a little bit, not to zero because God knows what they're going to do," said Norbert Michel, vice president and director at the Cato Institute's Center for Monetary and Financial Alternatives, referring to legal actions the Trump administration can take. Meanwhile, Nvidia shares surged 3.24 percent on Thursday, following the company's first-quarter earnings release after the close on Wednesday. The gain put the stock on pace for its highest closing level since January. Despite a notable 8-billion-U.S.-dollar revenue impact from U.S. export restrictions to China, investor sentiment was lifted by strong guidance from Nvidia CEO Jensen Huang and robust demand for AI infrastructure, particularly around Nvidia's upcoming Blackwell chip rollout. "The 50 billion China market is effectively closed to U.S. industry," Huang said about the restrictions. "We are exploring limited ways to compete, but Hopper is no longer an option. China's AI moves on with or without U.S. chips." For the quarter, Nvidia posted revenue of 44.1 billion U.S. dollars, beating Bloomberg consensus estimates of 43.3 billion and sharply up from 26 billion dollars a year ago. Elsewhere, Best Buy lowered its full-year outlook, citing economic uncertainty tied to the tariffs, which led to a drop in its stock. Attention has now turned to Costco's upcoming earnings release, as retailers face growing pressure. Trump recently told Walmart it should absorb the costs from higher import duties, following its latest earnings report. On the economic front, jobless claims in the United States rose more than expected last week, signaling potential softness in the labor market. Additionally, the Commerce Department revised its estimate for the first-quarter gross domestic product, showing the economy contracted at an annualized rate of 0.2 percent, a slight improvement from the initial reading.
Yahoo
3 days ago
- General
- Yahoo
U.S. deported 50 Venezuelans with legal status to El Salvador: study
At least 50 Venezuelans who were deported and sent to a maximum security prison in El Salvador came to the United States legally and never violated immigration law, according to a new analysis from the libertarian Cato Institute. The report compiled family accounts, along with entry documents and witness testimony, to determine how they crossed into the United States and what likely led to their detention. 'The government calls them all 'illegal aliens.' But of the 90 cases where the method of crossing is known, 50 men report that they came legally to the United States, with advanced U.S. government permission, at an official border crossing point,' the report stated. More than 200 Venezuelans were deported to El Salvador in March following a wave of detentions and executive orders on immigration. Since then, they have had no access to lawyers or the ability to communicate with their families. The records reviewed includes a temporary visa holder and four men who were authorized to travel through the U.S. refugee program. At least 45 scheduled appointments using the CBP One app, through which they were permitted to seek entry. Among those with appointments, 24 were given a permit to enter the U.S. and to stay for up to two years, while the other 21 were detained at the port of entry, according to the study. The Venezuelans were held at the Terrorism Confinement Center, a maximum security prison that can hold up to 40,000 people. They were construction laborers, pipe installers, cooks, delivery drivers, a soccer coach, a makeup artist, a mechanic, a veterinarian, a musician and an entrepreneur, the study found. David Bier, director of Immigration Studies at Cato and author of the analysis, said the findings underscore a broader goal not simply to target illegal immigration, but to reduce immigration overall. 'It reveals a grave threat to the rights of noncitizens in the United States,' Bier said. 'And it may permanently change how people around the world view the United States: not as the land of freedom and rule of law, but a land of arbitrary detention at the whims of its leader like Russia or North Korea.' The Venezuelans were deported under the authority of the 1798 Alien Enemies Act, an 18th-century wartime declaration. The detentions are tied to suspicions of gang affiliation, but how those suspicions are formed raises concerns. Immigration officials flagged them as suspected members of the Tren de Aragua gang based on tattoos and a point-based system, according to a lawsuit the American Civil Liberties Union filed against the Donald Trump administration. The Cato report found that 42 were labeled as gang members primarily based on their tattoos, 'which Venezuelan gangs do not use to identify members and are not reliable indicators of gang membership.' 'All these legal immigrants denied gang membership, and only two appear to have had a U.S. criminal conviction of any kind, both for minor drug offenses,' Cato wrote in its report. J. Tony Lopez, an immigration attorney in Tampa, said that once a deportation takes place, U.S. Immigration and Customs Enforcement typically refuses to share further details, leaving families without clarity on their relatives' whereabouts or status. Two women in Tampa have been unable to get information about their deported Venezuelan partners. One of them, Liyanara Sánchez, recognized her husband, Frengel Reyes Mota, in a video aired two weeks ago by One America News Network. It's her only proof he's alive. The other woman, Angela Leal, has not received any news about her boyfriend, Luis Carlos Jose Marcano.
