"Trump administration preparing alternative tariff policy in anticipation of court action" - Bloomberg

Source
Uk Jin

Summary

  • The Trump administration is reported to be preparing alternative tariff measures in response to the possibility of limits on its authority to impose tariffs.
  • The U.S. Department of Commerce and the Office of the U.S. Trade Representative said they are reviewing the immediate reimposition of tariffs using presidential authority under trade law.
  • Experts forecast that the introduction of an alternative tariff system would cause confusion for companies and trading partners, and could lead to refunds of more than $88 billion in tariffs.
Photo=Shutterstock
Photo=Shutterstock

President Donald Trump's administration is reportedly preparing alternative measures in case the Supreme Court limits its authority to impose tariffs. The administration is said to be considering imposing alternative tariffs immediately if existing tariffs are invalidated.

On the 22nd (local time), Bloomberg reported that the U.S. Department of Commerce and the Office of the U.S. Trade Representative (USTR) are reviewing provisions, such as Sections 301 and 122 of the Trade Act, that would allow the president to impose tariffs unilaterally in case tariffs based on the International Emergency Economic Powers Act (IEEPA) are overturned.

The Supreme Court reportedly showed a skeptical response during hearings this month to President Trump's broad exercise of tariff authority. The administration has said it intends to maintain tariff policy regardless of the ruling, and that it would reimpose tariffs through alternative means even if an unfavorable decision is issued.

Currently, tariffs under the International Emergency Economic Powers Act account for more than half of the country's overall import tariff rate (about 14.4%), and include tariffs on products from major trading partners such as China, Canada, Mexico, and Brazil.

Experts said, "If an alternative tariff system is introduced, confusion for companies and trading partners is inevitable," and "there could also be a situation where tariffs of more than $88 billion that were previously collected would have to be refunded." The Trump administration said, "We are confident in the Supreme Court ruling," but also said, "If necessary, we will immediately restore tariffs by other means."

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Uk Jin

wook9629@bloomingbit.ioH3LLO, World! I am Uk Jin.
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