The Trump administration can take other ways to impose tariffs after federal Court knockout this week According to experts, it uses emergency powers to impose extensive taxes on U.S. trading partners.
At risk is a large part of Mr. Trump’s trade agenda, which relies on tariffs to ensure better trade terms, promote U.S. manufacturing and produce everything he has Claims could be trillions in new federal revenue. Currently, Mr. Trump's tariffs remain unchanged after the federal appeals court in Washington, D.C. temporarily halted the decision Thursday. Recover taxes.
If the ruling of the Trade Court is ultimately upheld, Mr. Trump has other tools to pursue his trade agenda, although they do not provide a broader authority in the International Emergency Economic Powers Act (IEEPA), which he uses to authorize trade responsibilities to nearly every foreign country.
"He will have several other authorities," said Clark Packard, a researcher at the Herbert A. Stiefel Center for Trade Policy Research at the Cato Institute, Cato Institute. "They have so many inspection and administration that they are slower." ”
Mr. Trump announced his tariffs on April 2, he said “Liberation Day”“At the time, the president described the trade deficit with other countries as a “national emergency,” which he said gave him the authority to impose tariffs under the leadership of the IEEPA.
But the lawsuit filed by five U.S. companies and a group of 12 states challenged the president's use of emergency powers laws and filed a lawsuit in the International Trade Court on Wednesday. Stopped tariffs.
As legal proceedings do, Trump administration officials say the president is considering using other tools to advance his trade policy.
"The Trump administration remains committed to addressing the national emergency in our country with drug trafficking and historic trade deficits and gives the Constitution and every legal authority of the President of Congress," White House spokesman Kush Desai said in a statement to CBS News on Thursday.
"Whatever the litigation develops, the president will continue to use all available tools to promote effective trade policies for all Americans," Desai added.
Policy experts say this is another option Mr. Trump can turn to, and how he can use them.
Experts say Mr. Trump could turn to Section 232 of the Trade Expansion Act of 1962, which allows the U.S. president to restrict imports in the name of national security. Mr. Trump has imposed tariffs on steel, aluminum and automatic imports under the regulations.
However, there is a capture. The regulation requires the Department of Commerce to consult with the Department of Defense and conduct an investigation and confirm that imports “threatening to harm” U.S. national security before the president can call Section 232. The investigation could take up to 270 days, which could slow down Mr. Trump's timeline on imposing tariffs.
"It has to withstand legal scrutiny and cannot be done on weekends," Packard said.
Furthermore, under Article 232, only if these import trade threatens national security, rather than the widespread method used by Mr. Trump and Ieepa, will apply only to specific departments.
"Once the report is released, the president has broad discretion, but he has to target various departments of products such as steel and aluminum," Packard said. "They can't be blankets, full tariffs."
Some experts believe Mr. Trump may turn to the regulation to further raise his tariff agenda.
“We believe that the government will add a basis for tariffs starting this summer to follow Article 232 to conduct a trade survey on strategic industries such as pharmaceuticals, key minerals, wood, wood, copper and semiconductors,” Kurt Reiman, UBS Global Wealth Management, said in a research note.
"These departments were initially excluded from the 10% benchmark tariff because President Trump intends to reduce U.S. reliance on foreign producers of these products by encouraging domestic production," he added.
Mr. Trump can also draw on the Trade Act of 1974 to impose new tariffs. Section 301 of the law allows the U.S. president to apply for county-based tariffs at the rate he chooses if the U.S. Trade Representative determines another country to engage in unfair diplomatic practices.
However, there are limitations. This law cannot be applied universally to all foreign imports.
Angela Santos, a partner and head of customs operations at law firm Arentfox Schiff, told CBS MoneyWatch.
In addition, Mr. Trump can use Section 122 of the Trade Act of 1974, which is designed to address the huge trade deficit with other countries, imposing tariffs of up to 15% in a maximum of 150 days.
"I can see this easily," Santos said. "It seems to be the easiest way to impose tariffs, especially because most trading partners have a huge deficit with the United States."
Applying for tariffs under Section 122 does not require investigation, which means Mr. Trump can quickly use it to assess a wide range of import taxes.
"The government can quickly replace a 10% full tariff with a similar tariff of up to 15% under Section 122," Goldman Sachs analysts wrote in a note this week.
Goldman Sachs said the tariffs could actually go into effect “if necessary.”
In 150 days, Congressional action is needed to extend the tariffs.
Under Section 338 of the Tariff Act of 1930, the president can impose up to 50% tariffs on importing countries that discriminate against the United States, because law defines discrimination as discrimination when laws, import taxes, regulations or other restrictions of trading partners put the United States at a disadvantage.
These tariffs are different from the taxes in Article 301 because the tariff rate is 50%. Furthermore, no formal investigation is required. Experts say authorities have never been used.