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Trump tariffs blocked by court — but the US President can still reimpose them with these 2 laws
@Source: indiatimes.com
U.S. President Donald Trump’s ambitious trade agenda faced a judicial blow this week when a federal court struck down key portions of his recently enacted tariffs. However, legal experts and White House officials believe that Trump still retains potent tools to reimpose duties, drawing on two longstanding laws passed in 1962 and 1974. Despite the setback, the administration is signaling a two-pronged approach: challenge the ruling in higher courts while simultaneously exploring alternative statutory authorities to keep tariffs in place, per Yahoo Finance's report.Tariff Defeat in Court, but Not the EndgameOn Wednesday, the U.S. Court of International Trade invalidated Trump’s tariffs on the grounds that they exceeded presidential authority under the 1977 International Emergency Economic Powers Act (IEEPA). The next day, another federal judge in Washington issued a narrower ruling, limiting its effect to the plaintiffs involved but reinforcing the legal headwinds facing the administration.Yet former trade officials say this won’t halt Trump’s broader trade plans. Greta Peisch, a former general counsel in the Biden administration, remarked during a Thursday interview that the president can find other authorities to reassert these policies and called the ruling “only the first step in litigation”, as quoted in a report by Yahoo Finance report.Two Laws, Two Paths to Reimposing Trump TariffsIf the IEEPA path remains closed, two older statutes offer viable alternatives. The first is Section 122 of the Trade Act of 1974, which grants the president the authority to impose temporary tariffs for balance-of-payments purposes. This mechanism allows for quick action—tariffs can be imposed within days—but they are limited to 15% and expire after 150 days unless extended by Congress.The second, more durable approach involves Section 232 of the Trade Expansion Act of 1962 and Section 301 of the Trade Act of 1974. These allow the president to impose duties following investigations into threats to national or economic security. While effective, these tools are slower to implement due to legal requirements such as public consultations and detailed studies.Trump’s Potential Strategy: Fast Strike, Follow-Up FixTrade analysts anticipate that Trump may deploy a combination of both routes. The immediate-term solution would be using the 1974 balance-of-payments authority to avoid any tariff gap, as per Yahoo Finance's report.Simultaneously, the administration could initiate Section 232 or Section 301 investigations for a longer-term solution—especially for strategic sectors like semiconductors, pharmaceuticals, and automobiles.Henrietta Treyz of Veda Partners noted that while the 1974 authority offers speed, its limitations are “clear and temporary.” Section 301, the authority Trump previously used to impose tariffs on Chinese imports during his first term, may ultimately serve as the administration’s preferred fallback.Legal Appeals and Other Options on the TableIn parallel with these moves, the White House has announced it will appeal the court’s decision and may escalate the matter to the Supreme Court. Press Secretary Karoline Leavitt confirmed that the administration is exploring “both legal and executive options,” and cited Section 232 as a pathway already under consideration.Other tools include Section 201 of the 1974 Trade Act and even a rarely used provision from the 1930 Tariff Act. Additionally, new legislative efforts—dubbed the “big, beautiful bill” by Trump—could empower the administration further by rewriting tax codes to target “discriminatory foreign countries.”For now, the administration has 10 days to halt tariff collections, but it is taking swift legal steps to delay enforcement and ensure the continuity of its trade agenda.No Retreat on TariffsA defiant White House continues to frame the issue as a constitutional and economic imperative. “President Trump pledged to put America First,” said spokesperson Kush Desai, “and the administration is committed to using every lever of executive power to restore American greatness.”While courts may have delivered a blow, the Trump tariffs could return—this time through the same legal machinery that Congress has handed presidents over the last half-century.FAQsWhat happened to Trump’s recent tariffs?A federal court invalidated key portions of them, ruling they exceeded presidential authority under the 1977 International Emergency Economic Powers Act (IEEPA).Does this mean the tariffs are gone for good?No. The administration plans to appeal the decision and explore other legal avenues to reimpose tariffs.
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