Key Points:
- The Supreme Court struck down Trump’s sweeping global tariffs.
- Trump criticized the justices and announced new trade strategies.
- The administration will launch new Section 301 investigations into unfair trade.
- Trump might revive a Great Depression-era law to tax foreign goods.
The Supreme Court just struck down President Donald Trump’s massive global tariffs. In response, Trump quickly announced plans to use different laws to keep taxing foreign goods. During a Friday press conference, he called the justices “fools and lapdogs” and promised to push forward with his aggressive trade agenda.
Trump’s immediate backup plan relies on Section 122 of the Trade Act of 1974. Under this rule, he plans to hit the world with a temporary 10% tariff. This law lets the president impose duties of up to 15% for 150 days without conducting any formal investigations. After that 150-day window closes, only Congress holds the power to extend the taxes.
The White House is also dusting off other legal tools. Trump said his team will launch several new investigations under Section 301. This specific law targets countries that use unfair or discriminatory trade practices against the United States. Trump previously used Section 301 heavily during his first term to penalize Chinese imports. However, these investigations take time and usually require public hearings.
National security offers another route for the president. Trump frequently uses Section 232 to tax goods like steel, aluminum, and auto parts. He claims these foreign imports threaten American security. The Commerce Department must investigate these claims before the taxes take effect, but the administration largely controls the final outcome.
If all else fails, Trump’s team might dig deep into history. Treasury Secretary Scott Bessent recently mentioned Section 338 of the 1930 Tariff Act as a potential backup plan. This Great Depression-era law allows the president to slap 50% tariffs on countries that discriminate against American businesses. A president has never actually used this specific power, but it requires no investigation and carries no time limit.
Before the Supreme Court ruling, Trump had raised the average U.S. tariff from 2.5% to nearly 17%. While the Constitution gives Congress the power to lay taxes, lawmakers handed the White House these specific, limited tools decades ago. Now, Trump plans to stretch those exact tools to their absolute limits.
