Key facts
- President Donald Trump is pursuing new tariff strategies following Supreme Court and federal court defeats.
- The administration is leveraging Section 301 of the Trade Act, which allows for tariffs against countries with unfair trade practices.
- Trump views tariffs as a central element of his economic policy and a source of government revenue.
- Previous tariffs failed to significantly stimulate U.S. manufacturing and employment, with consumers bearing the cost increases.
- Section 122 tariffs, which had a 150-day limit, are expiring soon, and Congress is unlikely to extend them.
Despite facing significant legal setbacks, President Donald Trump is determined to maintain tariffs as a cornerstone of his economic policy. Following a Supreme Court ruling in February 2026 that invalidated his emergency tariffs, and a subsequent federal court decision on May 7 that struck down interim levies, Trump has indicated a pivot to alternative strategies.
Trump has stated his intention to find different ways to implement tariffs, citing the need to regain tariff-making power. The administration is now focusing on Section 301 of the Trade Act of 1974, a provision designed to address foreign trade practices deemed unfair or burdensome to U.S. commerce. This section allows the president to impose tariffs without explicit limits on their amount and to discriminate among countries, potentially generating revenue without violating the Constitution's taxation clause.
This strategy is likely to face further legal challenges. The administration has initiated two probes, signaling potential new tariffs against China and other key trading partners later this year. Trump's fixation on tariffs stems from his belief in their power to enforce bilateral trade deals and generate revenue, a source of power he resents having lost due to court orders.
Meanwhile, tariffs imposed under Section 122 of the Trade Act of 1974, which allowed for 10% global tariffs for 150 days, are set to expire on July 24. Lawmakers are reportedly unlikely to extend these tariffs, especially with the approaching November midterm elections and existing voter concerns about the high cost of living.