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The Trump administration is preparing alternative plans to allow the president to implement his sweeping tariff policies even if the U.S. Supreme Court rejects their The argument is that he is authorized to impose taxes.
For weeks, administration staff and associates are researching Other paths that will keep Trump in place Tariff If the Court wishes to reject their argument that the President is authorized to impose tariffs Almost every trading partner of America Under the International Emergency Economic Powers Act. This involves falling back on a combination of provisions in the Trade Expansion Act of 1962 and the Trade Act of 1974 to support the President’s claim. He has the power to reverse foreign trade Without the approval of Congress.
The Supreme Court is set to hear arguments on Wednesday in the case against Trump’s tariffs, one of the most significant challenges to Trump’s signature agenda. The controversy is limited to whether the International Emergency Economic Powers Act authorizes the President to impose tariffs.
“There are many other authorities that can be used, but [the International Emergency Economic Powers Act] It’s the cleanest it’s ever been, and it gives the United States and the President the most negotiating power,” said Treasury Secretary Scott Besant. CNBC’s “Squawk Box” Tuesday
The Trump administration is relying on the International Emergency Economic Powers Act of 1977 to claim that America’s trade deficit with trading partners threatens national and economic security. Under the law, the President can regulate international commerce in response to an “unusual and extraordinary threat.”
So far, two lower courts have rejected that justification.
Besant hopes that the Supreme Court has done this Trump was allowed to implement his unprecedented agenda in at least 19 cases Will support them again this year. But the administration is taking no risks by preparing for a situation where the Supreme Court rejects this argument outright or upholds only a part of it. according to politico,
Besant cited several “cumbersome” but “effective” statutes that give the executive the authority to impose tariffs, although very narrowly.
he cited Section 232 of the Trade Expansion Act of 1962Which allows the President to impose sanctions or enter into negotiations with trade partners if the Commerce Department investigates and determines the imports “threaten to impair” national security.
Till now the administration has launched A dozen section 232 investigations Sector items on which Trump has imposed tariffs, such as copper, pharmaceuticals, truckssemiconductors, and wood.
Besant was also cited Section 301 of the Trade Act of 1974Which gives the US Trade Representative the authority to investigate and take action against a trading partner if the agreement violates or denies benefits to the US, or “burdens or restricts” US commerce.
trade representative’s office has launched an investigation in Brazil.
Section 301 offers a path that more closely aligns with Trump’s claims that his tariffs are for national security reasons, but such an investigation could take months to complete — which would slow down the president’s agenda.
Multiple current and former White House officials and others familiar with the administration reported politico Other options include invoking Section 122 of the Trade Act of 1974Which allows the President to impose a surcharge, not to exceed 15 percent for a maximum of 150 days, on duties to correct or address “large and serious” balance of payments deficits or to prevent depreciation of the dollar in foreign exchange markets.
there is also Section 338 of the Tariff Act of 1930Which allows the President to impose tariffs up to 50 percent if a foreign country engages in burdensome or discriminatory actions that harm American commerce. The US has never imposed tariffs using this law.
Typically, Congress is the entity tasked with regulating international trade, but some laws defer to the President. However, challengers believe the president has gone too far.
Consequences of Trump’s “Liberation Day” Tariffs send stock market into turmoil and increased operations costs for small businessesEconomists predict that the long-term effect of the tariffs is higher prices for consumers.