Trump may turn to old trade laws after SC tariff blow

The United States (US) Supreme Court striking down the use of the International Emergency Economic Powers Act (IEEPA) in imposing country-specific “reciprocal” tariffs has forced President Donald Trump and his trade team to look for alternative legal routes to revive tariff action.

- ASIT RANJAN MISHRA

While no statute gives the President the same sweeping powers the IEEPA does, Trump still has a broad arsenal of trade tools. Here is a breakdown of the tariff weapons available to him and what each one means for India.

This Section of the Trade Expansion Act, 1962, allows the President to impose tariffs or quotas if imports are found to threaten national security. The commerce department conducts the investigation, but the President alone decides the remedy. Section 232 has no fixed tariff ceiling, no expiry, and has previously been used {to hit steel and aluminium imports.

How it concerns India: India was hit in 2018 by Trump’s steel and aluminium tariffs under Section 232. Renewed action would immediately affect India’s exports of metals, auto components, and pharma.

Section 301 of the Trade Act, 1974, authorises the US Trade Representative (USTR) to investigate and retaliate against foreign policies that are “unreasonable, unjustifiable, or discriminatory” and burden US commerce. If negotiations fail, the President can approve targeted tariffs or other restrictions. Section 301 was the legal engine behind Trump’s tariffs on roughly $370 billion of Chinese goods.