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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.