Following the U.S. Supreme Court's invalidation of tariffs under the IEEPA, President Trump has initiated a 'Plan B' utilizing new trade law provisions, but faces significant procedural hurdles.
In response to the U.S. Supreme Court ruling that rendered tariffs invalid under the International Economic Emergency Powers Act (IEEPA), President Trump swiftly activated a 'Plan B' that relies on new trade law provisions. This 'Plan B' involves invoking Section 122 of the Trade Act to impose a 10% tariff on all imports globally, with plans to increase it to 15%. However, the Section 122 provision comes with limitations, including a maximum tariff rate of 15% and a duration of up to 150 days, which necessitates Congressional approval for any extension. While the measure is designed to be immediate, its temporary nature may pose challenges for a longer-term tariff strategy.
