Source: Fortune
Summary
The US Treasury’s revenue from President Trump’s tariffs has dwindled after the Supreme Court struck down the biggest and boldest of Trump’s tariffs in February. The president’s trade team is now trying to replace the lost revenue by imposing new tariffs under Section 301 of the Trade Act of 1974. The administration has two big Section 301 investigations underway, one accusing 60 countries of failing to crack down on imports created by forced labor, and the other investigating whether 16 US trading partners are overproducing goods and driving down worldwide prices. The administration has proposed tariffs on 16 countries and is receiving public comments on the proposed tariffs.
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The strategy enters a familiar phase.
The Trump administration is trying to recoup lost revenue from tariffs by imposing new tariffs under Section 301. The president has flexibility in how he uses the Section 301 tariffs, but must clear procedural hurdles. The administration is accused of using the Section 301 investigations as a pretext to impose universal tariffs, which could be vulnerable in court. The new tariffs are expected to be imposed in time to replace the expiring Section 122 tariffs. The president’s tariff policy has created uncertainty for businesses, leaving them hesitant to make investments and decisions.
The numbers tell one story, but the administration’s actions tell another.
Author: Evan Null
