Trump Eyes New Trade Probes to Revive Tariffs After Court Defeat

The US is readying a spate of additional national security investigations that would enable President Donald Trump to impose new tariffs, as the administration seeks to rebuild his global tariff regime in the wake of last week’s Supreme Court ruling that struck down the country-specific emergency levies he imposed last year.

The administration is preparing plans to launch investigations into the impact of imports on batteries, cast iron and iron fittings, electrical grid equipment, telecom equipment, plastics and plastic piping, and industrial chemicals, according to a person familiar with the plans granted anonymity to detail internal deliberations. The probes under Section 232 of the Trade Expansion Act of 1962 were first reported by the Wall Street Journal; the provision allows the president to impose levies based on national security concerns.

Any new tariffs would come as Trump has already moved to impose a global tariff in the wake of the Supreme Court decision. The administration announced that a 10% levy would be imposed beginning Tuesday morning, which Trump subsequently threatened to increase to 15%.

The president can likely only keep those tariffs in place for five months, and Trump indicated he’d use that time to prepare other import taxes that could help, in aggregate, replace the levies struck down by the courts. Tariffs justified by Section 232 authority are seen as more legally viable, and the president has already used the legal provision to place levies on metals and autos during his second term.

US Trade Representative Jamieson Greer said last week Trump would also look to initiate probes under Section 301 of the Trade Act of 1974 — which is designed to counter discriminatory actions by trading partners — as he sought to rebuild his tariff program.

Those inquires are expected to cover “most major trading partners” and include “areas of concern such as industrial excess capacity, forced labor, pharmaceutical pricing practices, discrimination against U.S. technology companies and digital goods and services, digital services taxes, ocean pollution, and practices related to the trade in seafood, rice, and other products,” Greer said in a statement. The investigations are expected to conclude on an “accelerated” timeline.

Earlier Monday, Trump threatened higher tariffs on goods from countries that “play games” with their existing US trade agreements following the Supreme Court’s decision quashing his global duties.

Earlier: Trump Vows Higher Tariffs for Nations That ‘Play Games’ on Deals

“Any Country that wants to ‘play games’ with the ridiculous supreme court decision, especially those that have ‘Ripped Off’ the U.S.A. for years, and even decades, will be met with a much higher Tariff, and worse, than that which they just recently agreed to. BUYER BEWARE!!!” Trump posted Monday on social media.

The administration has sought to move quickly on the replacement tariffs in a bid to keep deals intact with US trading partners in the wake of the court’s ruling, which undercut his ability to set tariff rates using an emergency law.

The European Union on Monday froze the ratification process for its agreement with the Trump administration. Officials in the European Parliament said they want to seek clarity on Trump’s tariff program before moving forward.

Read more: EU Halts US Trade Deal as Tariff Turmoil Injects Uncertainty

China, Japan, South Korea and the UK are among other major trading partners that negotiated trade pacts with the US. The White House did not immediately respond when asked if Trump’s post was aimed specifically at the EU.

Trump’s post is the latest sign he’s digging in on his plan to unilaterally impose broad tariffs on products entering the US market. But after the court’s decision, he has less flexibility to do so.

Read more: US Tells Partners to Honor Tariff Deals as Trump Regroups

“As President, I do not have to go back to Congress to get approval of Tariffs,” Trump wrote in a subsequent post.

--With assistance from Josh Wingrove.

To contact the reporters on this story:
Jeff Mason in Washington at jmason198@bloomberg.net;
Mackenzie Hawkins in Hong Kong at mhawkins71@bloomberg.net

To contact the editors responsible for this story:
Mario Parker at mparker22@bloomberg.net

Justin Sink, Derek Wallbank

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