Washington shifts strategy to enforce strict temporary import duties
Washington has swiftly pivoted its economic strategy following a major judicial setback. Officials announced alternative plans to enforce US trade tariffs after the Supreme Court ruled that duties previously imposed by the Trump administration under the IEEPA were illegal. Jamieson Greer, the US Trade Representative, detailed how the government will maintain its broader economic goals and honor existing agreements with international partners.
Starting February 24, a temporary 10 percent surcharge will hit various goods entering the United States. This specific measure utilizes Section 122 of the Trade Act of 1974. It is designed to last for 150 days, though lawmakers in Congress would need to approve any further extensions. Certain essential items will remain exempt from this temporary levy, softening the blow on critical domestic supply chains.
Beyond immediate duties, Greer confirmed that his office is launching widespread, accelerated investigations using Section 301. These probes aim to target unreasonable and discriminatory practices by multiple global trading partners. Officials will scrutinize issues ranging from industrial overcapacity and forced labor to unfair pharmaceutical pricing and discrimination against American technology companies. Environmental concerns like ocean pollution, alongside specific practices in seafood and rice markets, are also high on the agenda. These rapid investigations could easily lead to further financial penalties if investigators find definitive evidence of unfair global trade policies.
Current investigations targeting nations like China and Brazil will proceed without interruption. Furthermore, established duties under Section 232 and existing Section 301 measures remain fully active. Greer clarified that the recent court decision only blocked specific reciprocal and fentanyl-related measures. He noted that widespread levies on Chinese goods and other sectoral duties still legally impact roughly 30 percent of all American imports.
Defending the original strategy, Greer argued the IEEPA was a crucial mechanism for handling urgent foreign challenges like illegal immigration and severe trade deficits. He emphasized that regardless of the current legal roadblocks, these core national problems persist. The current administration intends to keep pushing the president's aggressive trade agenda. Trading partners were previously warned that backup plans would be activated if courts restricted executive authority, ensuring the White House continues its push for a reciprocal global market.
Image Source: Law Trend
