The Trump administration has launched a series of new trade investigations under Section 301 of the Trade Act of 1974 after the Supreme Court struck down its original approach to implement tariffs. The high court ruled that the administration's "Liberation Day" tariffs, imposed under IEEPA, were unconstitutional, forcing officials to seek more legally durable alternatives. Currently, there is a temporary 10% global tariff in place under Section 122 of the Trade Act of 1974.
Section 301 allows the U.S. Trade Representative to investigate foreign trade practices deemed unreasonable, discriminatory, or harmful to U.S. commerce, and to respond with targeted tariffs or other import restrictions. Unlike IEEPA, it was specifically designed for trade enforcement and has withstood legal scrutiny for decades.
The administration has now launched two sweeping probes in as many days. The first targets industrial overcapacity across major trading partners including China, the EU, Japan, India, Mexico, and Vietnam. The second, announced Thursday, investigates forced labor practices across 60 economies. United States Trade Representative Jamieson Greer seeks to complete the investigations by July, around the same time when the administration's temporary Section 122 tariffs expire.
The practical effect is that broad-based tariffs are likely returning, just under a more legally tested framework. Section 301 requires a formal investigative process, public hearings, and comment periods before any duties can be imposed. For businesses, importers, and consumers, this signals continued supply chain uncertainty well into the summer, with new tariff levels potentially matching what the Supreme Court previously struck down.
Sources: Office of the United States Trade Representative, Bloomberg, CNBC
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