On December 3, Eastern Time, U.S. Treasury Secretary Bessant appeared in The New York Times. At the financial summit, it was stated that the Supreme Court's ruling would not affect the White House's tariff agenda.
He reiterated a proposal he made a month earlier: to continue imposing import tariffs through three provisions of trade laws from the last century, including Sections 301 and 122 of the 1974 Trade Act and Section 232 of the 1962 Trade Expansion Act.
Sections 301 and 122 of the Trade Act also grant the president the power to unilaterally impose tariffs. The aforementioned White House National Economic Council Director, Hassett, recently hinted at similar implications. However, these alternative plans are either slower to implement, have a less extensive scope than Trump's current powers, and may also face similar lawsuits.
Specifically, Article 301 authorizes the Trade Representative to investigate “unreasonable or unfair trade practices” of other countries and to recommend that the President impose unilateral sanctions.
According to Dan Cannistra, a partner at Crowell & Moring, by January 17, 2025, before the start of Trump's second term, successive administrations have initiated more than 130 investigations under Section 301, 35 of which were initiated after the establishment of the World Trade Organization in 1995.
In 2017, during his first term, Trump specifically expanded the scope of Section 301, targeting Asian trading partners, to include digital trade and intellectual property. It covers a wide range of areas, including market access (such as ethanol) and environmental policies (such as illegal deforestation).
Section 122 of the Trade Act authorizes the president to impose tariffs of up to 15%, but the maximum period is only 150 days.
In addition, the U.S. has already imposed tariffs on industries such as metals and automobiles under Section 232 of the Trade Expansion Act of 1962. On September 2, the Ministry of Commerce launched a new investigation under this clause, including investigations into imported robots . Industrial machinery and medical devices This measure has the potential to cover a large portion of the U.S. manufacturing base.
The 63-year-old Bessant wields considerable influence in the Trump administration's economic affairs. Sources indicate that with White House National Economic Council Director Hassett likely to become the new Federal Reserve Chairman, the Trump team is discussing having Bessant, who is also serving as acting IRS commissioner, lead the agency, making him a key figure and overseer of economic policy.
After taking office earlier this year, Trump passed the International Emergency Economic Powers Act, which imposed differentiated tariffs on several trading partners. These tariffs are mainly divided into two categories: fentanyl tariffs, which were imposed on all products from Canada, Mexico, and China under the pretext of addressing the illegal drug crisis; and reciprocal tariffs targeting Asia, the European Union, and Brazil.
On the morning of November 5, the Supreme Court convened arguments from all parties regarding the legality of its lawsuit. The lawsuit was led by several small U.S. importers and several states governed by Democrats. The White House had previously lost several hearings.
John Veroneau, former U.S. Deputy Trade Representative under Obama, previously stated that the case would test the Supreme Court's ability to uphold the "major issues principle." This principle, established by the Supreme Court during the Biden era, states that executive agencies cannot unilaterally adopt policies that have a significant impact on the national economy without explicit congressional authorization.
During the day's proceedings, all nine justices, including both conservatives and liberals, argued to some extent that Trump had overstepped his authority. The majority opinion, including that of the Chief Justice, expressed reservations about the White House's decision to declare a national emergency and impose tariffs across the board.
The case will require months of trial, and the final outcome may further worsen the already severe federal budget deficit and push up the yield on long-term U.S. Treasury bonds.
Faced with high domestic inflation and uncertainty following the Supreme Court tariff hearings, the White House is gradually changing its tariff strategy.
The White House recently adjusted the scope of the "reciprocal tariffs," excluding agricultural products such as coffee, bananas, beef, tea, spices, tomatoes, avocados, coconuts, oranges, and pineapples from the additional tariffs previously levied under the Reciprocal Tariff Executive Order. The updated tariff exemption list and potential adjustments to "alliance partners" took effect on November 13.
(Article source: Jiemian News)
