Following the Supreme Court's cancellation of emergency authority-based tariffs, the administration of US President Donald Trump has begun taking new steps that closely affect global trade.
After the US Supreme Court limited the president's power to impose immediate tariffs via social media in February, the White House turned to older trade laws to establish a new punitive trade measures regime that would be more resistant to legal objections.
CLAIM OF NEW TARIFFS UP TO 12.5% ON TURKEY AND EU
According to the announced decision, US trade officials have put on the agenda new customs duties ranging from 10% to 12.5% on more than 60 countries, including Turkey and the European Union, citing forced labor laws.
In addition to these allegations targeting trade partners, the Washington administration proposed a 25% tariff on Brazil and launched a new investigation into trade activities with Vietnam.
Following comprehensive studies on overcapacity in industrial sectors and government subsidies, it is claimed that new financial obligations could be imposed on the trade partners listed.
TRUMP CHOSE THE HARD PATH
Before the Supreme Court's cancellation, the Trump administration could directly announce tariffs using emergency powers, but in the new period, it must follow longer legal procedures requiring public opinion and official reports. According to the Financial Times, Washington is now acting based on Section 301 of the 1974 Trade Act.
This aims to make the new tariffs more resilient against potential judicial processes.
END OF JULY SEEN AS A CRITICAL DEADLINE
White House trade officials are racing against time to complete new investigations before the end of July, when the temporary tariffs quickly implemented after the February court ruling expire.
Under the relevant section of the 1974 law, the current temporary tariffs can legally remain in effect for a maximum of 150 days, forcing the administration to establish permanent and protected new legal bases before that date. While some trade allies expect the old rates to be maintained, concerns persist in global markets that tariffs could be raised to higher levels.
INFLATION CONCERNS Ahead of the midterm elections in November, the Trump administration, trying to balance rising inflation and affordability issues, is preparing additional tax packages while reducing tariffs on some agricultural and industrial machinery from 25% to 15% to protect American farmers and manufacturers.
Washington, which is also reshaping relations with China—the world's second-largest economy—is asking companies to provide input on managing trade with China. US Trade Representative Jamieson Greer has signaled openness to reducing tariffs on some Chinese goods.
