Trump Unveils Alternative Trade Arsenal: Section 122, 301, 232 Tariffs Set to Redefine U.S. Trade Policy | EXPLAINED

New Delhi: After a major legal setback to his sweeping tariff policy, U.S. President Donald Trump has moved swiftly to deploy a new trio of trade laws that could keep his protectionist agenda alive. By invoking Sections 122, 301, and 232 of U.S. trade legislation, Trump is signalling that court rulings will not halt his push for aggressive import duties, setting the stage for renewed tensions in global commerce.

Trump announced a 10% global import duty grounded in Section 122 of the Trade Act of 1974, a lesser-used statute that allows the president to impose temporary tariffs of up to 15% for up to 150 days without lengthy investigations. The move is intended to partially compensate for revenue lost after courts curtailed his earlier tariff authority.

“We have powerful alternatives”, Trump stated, underscoring that the new tariffs are aimed at addressing large trade deficits and reinforcing U.S. negotiating leverage.

The Three Legal Pillars of Trump’s Tariff Playbook

Section 122 - Quick, Temporary Global Duties: Under Section 122, the administration can swiftly impose a blanket tariff across all trading partners without prolonged probe periods. This quick-response mechanism allows duties to take effect almost immediately, though only for a limited time unless approved by Congress.

Section 301 - Targeting Unfair Trade Practices: This provision authorizes investigations into foreign trade policies that are deemed discriminatory or unfair to U.S. businesses. If violations are found, targeted tariffs can be levied against specific products or countries, as previously seen in Trump’s trade actions against Chinese imports.

Section 232 - National Security Tariffs: Originating from the Trade Expansion Act of 1962, Section 232 allows tariffs on products that are judged to pose a threat to U.S. national security. Trump has historically used this authority for tariffs on steel and aluminum and is expected to continue leveraging it for other sectors.

What This Means for Global Trade

Trump’s pivot to these alternative statutes reflects an effort to keep tariff pressure alive despite legal hurdles. While Section 122 offers speed, it is temporary; Sections 301 and 232 require investigations that could stretch into months.

The new approach signals that the U.S. is likely to maintain assertive trade measures, balancing temporary sweeping duties with more targeted investigations into specific unfair trade practices and national security threats.

Legal Setback And Policy Comeback

Trump’s evolving trade toolkit - Sections 122, 301, and 232 is designed to sustain a protectionist agenda through a mix of temporary global tariffs and longer-term probes. With global markets watching closely, this strategy marks a significant recalibration of U.S. trade policy post-court ruling. 

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