Trump's Tariffs After IEEPA

The ruling provided by Chief Justice Roberts, who spoke for the majority, outlined that IEEPA does not constitute clear congressional authorization to impose tariffs of unlimited scope and duration.

Questions that remain unanswered are:

• Reciprocal tariffs

• Refunds (currently $175 Billion in potential reimbursements)

Here are the remaining Tariff actions President Trump can take along with their individual power and comparison to IEEPA:

Section 122: The immediate "Plan B" of President Trump, the Trade Act of 1974. This allows the President to impose up to 15 percent tariffs to address large balance of payments deficits.

Powerful components of this section:

• No formal investigation required

• Short-term negotiation leverage in ongoing trade talks

Limitations of Authority:

• Capped at 150 days

• Must be applied uniformly across all countries

Section 232: The Trade Expansion Act of 1962 allows tariffs on imports threatening national security. This imposed act follows a Commerce Department investigation and has already been used for tariffs on steel, aluminum, copper, and semiconductors, automobiles, lumber, and heavy trucks. These tariffs will remain in full effect and there is no cap on the rate in addition to coverage expanding to derivative products.

Powerful components of this section:

• No rate ceiling (unlimited tariff levels)

• Already legally tested and upheld by courts

• Can be expanded to additional sectors

• Permanent if not overturned by Congress

Limitations of Authority:

• Months-long investigation

• Can be overturned by Congress

Section 301: Another Trade Act of 1974 authorizes the U.S. Trade Representative to respond to unreasonable or discriminatory foreign trade practices. This is the current backbone of China tariffs.

Powerful components of this section:

• Broad toolkit with no tariff rate cap

• Extensive pressure on China

• Difficult to unwind once imposed

• Country-specific targeting

Limitations of Authority:

• Formal investigation required

Section 338: The Tariff Act of 1930 allows tariffs up to 50 percent on imports from countries that discriminate against U.S. commerce. This section remains a nuclear option and has not been invoked by the administration.

Powerful components of this section:

• Highest authorized rate of any remaining authority

• President can act on a "self-initiation" finding of fact, without investigation

• Could be applied to countries who refuse to negotiate

Limitations of Authority:

• Untested

• 50% tariff rate cap

• High litigation risk

The power of IEEPA tariffs lay in the speed, implementation, and impact across various countries. The Supreme Court decision curtails these presidential powers.

The remaining authorities under President Trump are limited overall by their speed, time of imposition, and don't immediately replicate the shock of IEEPA tariffs, limiting negotiating power in the near term.

The tariff decision also cut the effective rate on Chinese imports by nearly two-thirds and reduced rates on Canada and Mexico marginally. This underscores the geopolitical pressure that persists and remains a concern through other mechanisms in use by the administration.

Although firepower remains available to the administration through "Section 232" as investigations are well underway, investigations could continue to take months as new tariffs are imposed on additional sectors.

Section 232 remains largely unaffected by the decision and this maintains a definitive amount of pressure on China.

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