President Donald Trump recently cautioned that if the Supreme Court overturns the tariffs he imposed, the United States could become “defenseless” and face a decline comparable to “Third World status.” During the court’s oral arguments, the justices expressed skepticism about his broad claims of authority to impose these tariffs.
Even if the court rules against him, Trump still has tools to tax imports. He can tap into previous tariff powers from his first term, including some from the Great Depression era. Georgetown law professor Kathleen Claussen pointed out, “It’s hard to see any pathway here where tariffs end.”
During the hearing, lawyer Neal Katyal, representing small businesses fighting against the tariffs, argued that Trump doesn’t need the expansive authority he has claimed. Congress has given the White House limited powers to impose tariffs, indicating a careful delegation of authority.
Tariffs have been a critical part of Trump’s trade strategy in his second term, where he has implemented significant tariffs on imports from most countries. Statistics show that the average tariff rate has risen from 2.5% to 17.9%, the highest level since 1934, according to Yale University’s Budget Lab. This is significant because the U.S. Constitution assigns the power to tax and impose tariffs to Congress. Yet, Trump has acted unilaterally.
Experts like Stratos Pahis from Brooklyn Law School note that Trump still has several options to exert trade pressure. Here are a few key methods he might use:
- Countering Unfair Trade Practices: Under Section 301 of the Trade Act of 1974, the U.S. can address countries accused of unfair trade. Trump has used this against China, imposing tariffs related to unfair practices in technology and shipbuilding. Although there’s no limit on these tariffs, they require an investigation before implementation.
- Targeting Trade Deficits: The U.S. Court of International Trade recently ruled against Trump’s use of emergency powers to tackle trade deficits. However, Section 122 of the Trade Act allows for quicker tariff imposition in certain situations, although this authority hasn’t been fully tested yet.
- National Security Tarrifs: Trump has used Section 232 of the Trade Expansion Act to impose tariffs he regards as necessary for national security. For instance, he levied tariffs on steel, aluminum, and even furniture, showcasing the broad application of this authority.
- Reviving Depression-Era Tariffs: The 1930 Smoot-Hawley Tariff Act imposed heavy taxes on imports during the Great Depression and is often criticized for worsening the economic crisis. Section 338 of this act could allow Trump to impose tariffs without an investigation, although no president has used it before.
Experts point out that even with setbacks, Trump could still adopt these alternative approaches. John Veroneau, who previously served in trade roles under George W. Bush, acknowledged the laborious nature of implementing Section 301 against many countries versus smaller, faster mechanisms like Section 122.
As the landscape evolves, public reactions reveal a mixture of concern and skepticism regarding whether these tariffs will ultimately protect American interests or harm the economy. Recent social media discussions indicate that many Americans worry about rising prices and potential retaliation from other nations.
For a deeper dive into the potential impacts of tariffs and trade practices, you can read more on the U.S. Tariff Policies from the U.S. Department of Commerce.
Source link
Donald Trump, International trade, Neal Katyal, Scott Bessent, Courts, General news, Tariffs and global trade, Business, George W. Bush, John Veroneau, District of Columbia, China, Kathleen Claussen, U.S. news, Politics, United States, Supreme Court of the United States, Ryan Majerus, U.S. News
