President Donald Trump has moved to a new strategy to revive his tariff agenda.
This move comes after the U.S. Supreme Court ruled that Trump’s tariffs exceed presidential authority.
Donald Trump is using older trade laws to impose new Canada and Brazil tariffs
In February, the Court held in Learning Resources, Inc. v. Trump that the International Emergency Economic Powers Act (IEEPA) does not authorize the president to impose tariffs. The justices declared that the power to impose tariffs and levies lies solely with Congress. In fact, the law contains no mention of import duties.
In response, the Trump administration has moved to older trade laws to justify tariffs.
The new approach includes 50% tariffs on certain Canadian goods under Section 338 of the Tariff Act of 1930. Additionally, 25% tariffs on many Brazilian imports under Section 301 of the Trade Act of 1974. Officials are also considering similar measures against dozens of other countries.
As reported by Law Commentary, Canada’s tariffs target products ranging from wine and hockey sticks to cement. He has cited that the tariffs exempt energy products, potash, critical minerals, and goods already covered by national security tariffs.
Section 338, for example, allows the president to impose tariffs of up to 50% when a foreign country places U.S. commerce at a disadvantage. Legal experts, however, have noted that this provision has rarely been used.
Brazil tariffs rely on Section 301 of the Trade Act of 1974. This authorizes taking action against unreasonable trade practices.
Before imposing the duties, the Office of the U.S. Trade Representative held public hearings and consulted Brazilian officials. This gave the measures a stronger foundation as compared to earlier IEEPA tariffs.
However, the new tariffs undergo legal challenges. Courts can be expected to examine whether the administration’s findings justify the duties and whether it complied with the requirements of the statutes it invoked.
At the same time, the administration is expanding its tariff strategy by pursuing Section 301 investigations into around 60 economies over alleged forced-labor concerns, while continuing to rely on Section 232 of the Trade Expansion Act for national security-based tariffs. Although the new approach rests on laws that expressly authorize tariffs, each measure remains subject to judicial review.
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Originally reported by Sreemanti Sengupta on Mandatory
