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Trump Administration Plans Backup Tariff Measures Amid Supreme Court Uncertainty

Commerce and USTR officials prepare to invoke Trade Act Sections 301 and 122 to maintain tariff powers should the Supreme Court overturn current authorization.

Summary

The Trump administration is drafting contingency measures as the U.S. Supreme Court considers striking down a key tariff authorization. The Commerce Department and USTR are exploring using Trade Act Section 301 for unilateral trade actions against unfair foreign practices and Section 122 for tariff or quota adjustments to address balance-of-payments issues. These provisions would allow the president to reinstate tariffs if existing powers are invalidated.

Terms & Concepts
  • Trade Act Section 301: A provision allowing the U.S. president to impose trade measures in response to unfair foreign practices.
  • Trade Act Section 122: A clause granting the U.S. president authority to adjust tariffs or quotas to address balance-of-payments issues.
  • USTR (Office of the United States Trade Representative): A U.S. government agency responsible for developing and coordinating international trade policy.