Latest news with #Section338
Time of India
7 days ago
- Business
- Time of India
Not so fast: Trump can still impose tariffs despite court ruling — here's how
Despite a recent court setback limiting Trump's tariff powers under IEEPA, he retains multiple legal avenues to impose new taxes on foreign imports. Options include Section 122 for quick, short-term tariffs, Section 232 based on national security, Section 301 for longer-term strategies, and the previously unused Section 338. Tired of too many ads? Remove Ads Trump Still Has Tools to Raise Tariffs Tired of too many ads? Remove Ads What's Next? Hold your horses—despite a recent federal court ruling that blocked one of Donald Trump 's tariff tactics, the US president still has multiple legal avenues to hit foreign imports with new taxes.A three-judge panel from the U.S. Court of International Trade ruled that Trump overstepped his authority under the 1977 International Emergency Economic Powers Act (IEEPA) when he declared a national emergency and imposed sweeping tariffs on global imports. The court said the law was never meant to support such broad trade the decision marks a legal setback, it doesn't mark the end of Trump's tariff Phillips, Chief U.S. Political Economist at Goldman Sachs, told that the Trump team still has other legal tools at its disposal—some of which could be deployed almost could invoke Section 122 of the Trade Act of 1974, which allows the president to impose tariffs for up to 150 days without a formal investigation. The rationale? To address a balance of payments deficit or prevent a major depreciation of the U.S. believes this could enable Trump to quickly slap on a 15% across-the-board tariff again—though it's unclear if they could be paused and resumed used during Trump's first term, Section 232 enables tariffs based on national security concerns. That's how previous tariffs on steel, aluminum, and autos were say Trump could expand this approach to include items like pharmaceuticals, semiconductors, and consumer electronics under similar broader, longer-lasting tariffs, Trump could launch Section 301 investigations into unfair trade practices by other countries. These probes take time—weeks or more—but could justify higher, targeted tariffs once 338 of the Trade Act of 1930 allows tariffs up to 50% on countries that discriminate against the U.S. No formal investigation is required. While this provision has never been used, it remains legally Sachs says the most likely scenario would see Trump using Section 122 for quick, short-term tariffs while simultaneously kicking off Section 301 investigations to justify longer-term said, there's a practical ceiling. Only so many countries can realistically be targeted in a 150-day window, meaning smaller nations or those with modest trade surpluses may be spared.
Yahoo
7 days ago
- Business
- Yahoo
The courts are unlikely to end the trade war
Legal powerhouses section 122 and 338 offer upside Yesterday, a U.S. court struck down President Trump's 'Liberation Day' tariffs under the International Emergency Economic Powers Act (IEEPA), calling them unconstitutional and stopping 10% global tariffs and higher levies on China, Canada, and Mexico. The ruling, citing IEEPA's misuse for trade imbalances, cut the U.S. tariff rate from 27% to 17.8%.Trump has two legal, constitutional tools—Section 122 of the Trade Act of 1974 and Section 338 of the Tariff Act of 1930—to push his trade agenda forward without Congress. These laws provide clear limits, removing the subjective nature of Trump's prior tariffs, which businesses will find reassuring. With upside potential, especially against China's well-documented trade abuses, these options offer a structured path forward and may help reduce the uncertainty that has been bred by the on-again, off-again policy. Section 122: Quick, capped tariffs Section 122 allows Trump to impose tariffs up to 15% on imported goods' value to address major trade deficits, like the U.S.'s $971 billion gap in 2024, or to prevent dollar devaluation. No congressional approval is needed and tariffs last 150 days. The May 2025 court ruling endorsed Section 122's legality, making it a fast, predictable tool to tax imports from countries driving trade imbalances, giving businesses clarity on short-term impacts while Trump plans longer 338: A slam dunk against China Section 338 lets Trump tax imports up to 50% or ban them from countries that unfairly hurt U.S. businesses, with no time limit or need for Congress. Its clear 50% cap eliminates the uncertainty of Trump's earlier open-ended tariffs, a relief for businesses craving stability. China's trade abuses make Section 338 a strong fit. An investigation into China's practices—already well-documented—would justify tariffs or bans, leveraging this constitutional tool to target unfair trade head-on. China's well-documented trade abuses China's trade violations are clear. It slaps high tariffs on specific goods, like 25% on U.S. cars versus 2.5% on Chinese cars in the U.S., skewing competition. Subsidies, like $100 billion awarded yearly for tech firms, boost Chinese companies unfairly. Intellectual property theft, including forced technology transfers, costs U.S. firms $50 billion annually. China limits U.S. exports, controlling 80% of rare earth minerals. Its currency manipulation keeps the Yuan low, fueling a $419 billion U.S. trade deficit in 2024. These abuses, noted in U.S. Trade Representative reports, make Section 338 a straightforward, legally sound response. Strategic upside post-rulingThe court's ruling curbs IEEPA but green lights Section 122 and Section 338. Trump could use Section 122 for immediate 15% tariffs, then investigate China for Section 338's 50% tariffs. Section 122's 150-day limit and Section 338's 50% cap provide predictability, easing business concerns in recent months about an undetermined ceiling. While Section 122 is low-risk, Section 338 could spark trade tensions, raising prices. Courts might question Section 338's disuse, but China's clear violations bolster Trump's case. Section 122 and Section 338 give Trump legal, limited tariff tools, sidestepping the May 28 2025 ruling. With Section 122's quick action and Section 338's strength against China's abuses, these laws offer upside by stabilizing trade policy, giving businesses confidence in a more predictable tariff framework. The post The courts are unlikely to end the trade war appeared first on FreightWaves.
Time of India
7 days ago
- Business
- Time of India
As U.S. court blocks tariffs, here are ways Donald Trump could find a workaround after suffering a major blow
Court Says Donald Trump Overstepped His Powers Other Legal Tools Still Available to Trump Live Events FAQs (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Even after the US Court of International Trade ordered the permanent stop of most of US president Donald Trump's tariffs, he has other legal ways to work around to bring tariffs back in some form, as per a panel of three judges gave the verdict that Trump had "overstepped his authority by invoking the International Emergency Economic Powers Act (IEEPA) to impose sweeping tariffs on numerous countries," reported CNBC. As per the court's order, the White House had 10 days to complete the formal process of stopping the tariffs, according to the Goldman Sachs economists pointed out that the White House has a few tools that it can use to ensure the court ruling is only a temporary problem, reported CNBC. The economists wrote in a research note that, 'This ruling represents a setback for the administration's tariff plans and increases uncertainty but might not change the final outcome for most major US trading partners,' adding, 'For now, we expect the Trump administration will find other ways to impose tariffs,' as quoted in the READ: What is TACO Trade? The term that angers Donald Trump every time it's mentioned While, the Manhattan-based court's ruling blocks Trump's 10% baseline tariff, which was imposed on most of US trading partners, and even the additional duties on China, Canada and Mexico, but the ruling did not stop the sectoral levies, like those imposed on steel, aluminium and autos, according to Sachs highlighted the other techniques which the Trump administration can use, like Section 122 of US trade law Section 301 investigations and Section 338 of the Trade Act of 1930, reported bank said, 'The administration could quickly replace the 10% across-the-board tariff with a similar tariff of up to 15% under Sec. 122,' but also mentioned that such a move would just last for up to 150 days, after which law requires Congressional action, as per the may also initiate probes into US trading partners by launching Section 301 investigations, which could lay the bureaucratic groundwork for tariffs, but this process would take several weeks, according to Trump administration is already using Section 232 tariffs for steel, aluminium, and cars, as this law allows the president to act if imports are deemed as threats to national security, as per the report. Trump might attempt to broaden its application to include other industries, according to Section 338 has never been used before, it would let Trump impose levies of up to 50% on imports from countries that discriminate against the United States, as per the not. The court ruling slows things down, but it looks like Trump still has several options to keep pushing judges said Trump went too far by using emergency powers meant for national security to impose wide tariffs.
Khaleej Times
12-02-2025
- Business
- Khaleej Times
Trump may dust off 1930 trade discrimination law to back reciprocal US tariffs
President Donald Trump is likely to dust off a 1930 trade law largely forgotten for decades to back his new reciprocal US tariffs that will match other countries' higher import taxes, trade and legal experts say. Trump has said the new US tariff rates would take effect "almost immediately," and Section 338 of the Trade Act of 1930 would give him a quick path to imposing them. The law, threatened but never used to impose tariffs, appears only sporadically in government records. It allows the president to impose duties of up to 50% against imports from countries that are found to discriminate against US commerce. This authority could be triggered when the president finds that a country has imposed an "unreasonable charge, exaction, regulation or limitation," that is not equally enforced upon all countries. It also can be triggered by discrimination in custom duties or other fees, regulations or other restrictions that "disadvantage" U.S. commerce. Trump, who has long complained about the U.S. charging lower tariff rates than most other countries, has said his new reciprocal tariffs would take effect almost immediately. The European Union's 10% autos tariff, four times the 2.5% U.S. passenger car rate, is a particular sore spot for the president. "I think that is exactly the path that they're going to follow," Dan Cannistra, a partner in the Crowell Moring law firm, said of Section 338. "They're going to tell the EU: 'You're giving Korea zero percent on cars, you're giving 10% to the U.S. You're discriminating against us." FAST-ACTING Trade tools that Trump used in his first term would take longer to impose tariffs, including the Section 232 national security statute for steel and aluminum and the Section 301 unfair trade practices law for Chinese imports. These require investigations and public comment, which can take months. So far in his new term, Trump has favored tools that allowed immediate action on tariffs. These included a first-ever use of the International Emergency Economic Powers Act to impose tariffs - 10% on Chinese goods and a March deadline for 25% tariffs on Mexican and Canadian goods over fentanyl and border security. On Monday, Trump simply modified his previous Section 232 metals proclamation to quickly raise aluminum tariffs to 25% - matching steel tariffs - and to cancel all exemptions from steel and aluminum duties, effective March 12. Section 338 is in that same category of fast-acting remedies, allowing the president to act unilaterally and impose tariffs in 30 days, said Nazak Nikakhtar, a former senior Commerce Department official during Trump's first term. Nikakhtar, now a partner at the Wiley Rein law firm, said Trump's first term trade team researched scenarios for using Section 338 but went with more familiar tools. "The conclusion was that it was a valid law. Congress could have repealed it, but it didn't, Nikakhtar said. "Its benefit is that it's more immediate." A White House spokesperson did not respond to a Reuters request for comment on the potential use of Section 338. BEGGAR THY NEIGHBOR The Trade Act of 1930 that includes Section 338 is better known for massive U.S. tariff increases and subsequent retaliation that economic historians say worsened the 1930s Great Depression. After World War Two, countries sought to standardize global tariff rates to avoid a return of the pre-war "beggar-thy-neighbor" economic policies marked by competitive trade restrictions and currency devaluations. The resulting mutually agreed Most Favored Nation (MFN) tariff rates formed the basis of the 1947 General Agreement on Tariffs and Trade (GATT) and its 1995 successor, the World Trade Organization. John Veroneau, whose 2016 research helped renew interest in Section 338, said a unilateral move by Trump to impose such tariffs would effectively blow up the MFN system. "It would be an earthquake in Geneva to announce US intentions to move away from unconditional MFN and negotiate our tariff schedules on a bilateral basis," said Veroneau, a former deputy US trade representative during the George W. Bush administration and a partner in the Covington Burling law firm. He said the Franklin Roosevelt administration had threatened to impose Section 338 tariffs in the 1930s against France, Germany, Spain and Japan, but never did so. As communist forces consolidated control of China in 1949, a telegram from then-Secretary of State Dean Acheson mentions Section 338 as a potential remedy against Chinese "Commie commercial policy" discriminating against US commerce. Acheson notes the president could exclude Chinese imports altogether. The telegram is the last known official US government reference to the law, Veroneau said. DIFFERING RATES It's unclear whether Trump's action will be broad or targeted to a few sectors or countries. But the core of Trump's tariff action will be aimed at bringing into line with the often higher rates of other countries. White House economic adviser Kevin Hassett said on Monday that India's high tariffs lock out imports. The US trade-weighted average Most Favored Nation tariff rate is about 2.2%, according to World Trade Organization data, compared to 12% for India, 6.7% for Brazil, 5.1% for Vietnam and 2.7% for European Union countries. Although the tariff rates had been agreed by US administrations over time, Cannistra said he believed Trump's use of Section 338 would hold up to a legal challenge because the evolution of the tariff system is "riddled with inconsistencies" that have been negotiated by countries to protect their economic interests. "There is no finding other than that discrimination exists, and you could find it probably in 30 seconds looking at the competing tariff schedules," Cannistra said. In addition to differing tariffs, Nikakhtar said Trump could include countries' regulatory practices that work to exclude US products as discriminating against U.S. commerce, such as import restrictions on genetically modified crops or vehicle safety or emissions standards in the EU and Japan.
Yahoo
12-02-2025
- Automotive
- Yahoo
Trump may dust off 1930 trade discrimination law to back reciprocal US tariffs
By David Lawder WASHINGTON (Reuters) - President Donald Trump is likely to dust off a 1930 trade law largely forgotten for decades to back his new reciprocal U.S. tariffs that will match other countries' higher import taxes, trade and legal experts say. Trump has said the new U.S. tariff rates would take effect "almost immediately," and Section 338 of the Trade Act of 1930 would give him a quick path to imposing them. See for yourself — The Yodel is the go-to source for daily news, entertainment and feel-good stories. By signing up, you agree to our Terms and Privacy Policy. The law, threatened but never used to impose tariffs, appears only sporadically in government records. It allows the president to impose duties of up to 50% against imports from countries that are found to discriminate against U.S. commerce. This authority could be triggered when the president finds that a country has imposed an "unreasonable charge, exaction, regulation or limitation," that is not equally enforced upon all countries. It also can be triggered by discrimination in custom duties or other fees, regulations or other restrictions that "disadvantage" U.S. commerce. Trump, who has long complained about the U.S. charging lower tariff rates than most other countries, has said his new reciprocal tariffs would take effect almost immediately. The European Union's 10% autos tariff, four times the 2.5% U.S. passenger car rate, is a particular sore spot for the president. "I think that is exactly the path that they're going to follow," Dan Cannistra, a partner in the Crowell & Moring law firm, said of Section 338. "They're going to tell the EU: 'You're giving Korea zero percent on cars, you're giving 10% to the U.S. You're discriminating against us." FAST-ACTING Trade tools that Trump used in his first term would take longer to impose tariffs, including the Section 232 national security statute for steel and aluminum and the Section 301 unfair trade practices law for Chinese imports. These require investigations and public comment, which can take months. So far in his new term, Trump has favored tools that allowed immediate action on tariffs. These included a first-ever use of the International Emergency Economic Powers Act to impose tariffs - 10% on Chinese goods and a March deadline for 25% tariffs on Mexican and Canadian goods over fentanyl and border security. On Monday, Trump simply modified his previous Section 232 metals proclamation to quickly raise aluminum tariffs to 25% - matching steel tariffs - and to cancel all exemptions from steel and aluminum duties, effective March 12. Section 338 is in that same category of fast-acting remedies, allowing the president to act unilaterally and impose tariffs in 30 days, said Nazak Nikakhtar, a former senior Commerce Department official during Trump's first term. Nikakhtar, now a partner at the Wiley Rein law firm, said Trump's first term trade team researched scenarios for using Section 338 but went with more familiar tools. "The conclusion was that it was a valid law. Congress could have repealed it, but it didn't, Nikakhtar said. "Its benefit is that it's more immediate." A White House spokesperson did not respond to a Reuters request for comment on the potential use of Section 338. BEGGAR THY NEIGHBOR The Trade Act of 1930 that includes Section 338 is better known for massive U.S. tariff increases and subsequent retaliation that economic historians say worsened the 1930s Great Depression. After World War Two, countries sought to standardize global tariff rates to avoid a return of the pre-war "beggar-thy-neighbor" economic policies marked by competitive trade restrictions and currency devaluations. The resulting mutually agreed Most Favored Nation (MFN) tariff rates formed the basis of the 1947 General Agreement on Tariffs and Trade (GATT) and its 1995 successor, the World Trade Organization. John Veroneau, whose 2016 research helped renew interest in Section 338, said a unilateral move by Trump to impose such tariffs would effectively blow up the MFN system. "It would be an earthquake in Geneva to announce U.S. intentions to move away from unconditional MFN and negotiate our tariff schedules on a bilateral basis," said Veroneau, a former deputy U.S. trade representative during the George W. Bush administration and a partner in the Covington & Burling law firm. He said the Franklin Roosevelt administration had threatened to impose Section 338 tariffs in the 1930s against France, Germany, Spain and Japan, but never did so. As communist forces consolidated control of China in 1949, a telegram from then-Secretary of State Dean Acheson mentions Section 338 as a potential remedy against Chinese "Commie commercial policy" discriminating against U.S. commerce. Acheson notes the president could exclude Chinese imports altogether. The telegram is the last known official U.S. government reference to the law, Veroneau said. DIFFERING RATES It's unclear whether Trump's action will be broad or targeted to a few sectors or countries. But the core of Trump's tariff action will be aimed at bringing U.S. tariffs into line with the often higher rates of other countries. White House economic adviser Kevin Hassett said on Monday that India's high tariffs lock out imports. The U.S. trade-weighted average Most Favored Nation tariff rate is about 2.2%, according to World Trade Organization data, compared to 12% for India, 6.7% for Brazil, 5.1% for Vietnam and 2.7% for European Union countries. Although the tariff rates had been agreed by U.S. administrations over time, Cannistra said he believed Trump's use of Section 338 would hold up to a legal challenge because the evolution of the tariff system is "riddled with inconsistencies" that have been negotiated by countries to protect their economic interests. "There is no finding other than that discrimination exists, and you could find it probably in 30 seconds looking at the competing tariff schedules," Cannistra said. In addition to differing tariffs, Nikakhtar said Trump could include countries' regulatory practices that work to exclude U.S. products as discriminating against U.S. commerce, such as import restrictions on genetically modified crops or vehicle safety or emissions standards in the EU and Japan.
