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Legal Basis for Trump’s Tariff Policies


On November 26, 2024, former President Donald Trump announced via social media that he intends to impose an additional 10% tariff on Chinese imports and 25% tariffs on imports from Canada and Mexico. The justification for these tariffs was the alleged impact of fentanyl on the United States. Trump declared that tariffs would be applied universally to all countries and pledged to sign the necessary documents on January 20, 2025, the first day of his next potential term.

Below is a summary of the legal frameworks Trump is expected to rely on to implement his proposed tariff increases:

1. Section 232 of the Trade Expansion Act

Trump has previously used Section 232 of the 1962 Trade Expansion Act as the legal foundation for imposing tariffs. This statute authorizes the President to impose duties if the importation of certain goods is determined to threaten or impair U.S. national security.

  • In March 2018, Trump invoked Section 232 to impose 25% tariffs on steel and 10% tariffs on aluminum imports.

  • He justified the action with the claim that these imports posed a national security risk.

  • On March 8, 2018, Trump signed an official order to implement these tariffs, which became effective 15 days later.

  • Canada and Mexico initially received exemptions, contingent on the renegotiation of NAFTA (later replaced with the USMCA).

2. Section 301 of the Trade Act

Section 301 of the 1974 Trade Act has also been a cornerstone of Trump’s tariff strategy, particularly for addressing perceived unfair trade practices.

  • Starting in July 2018, the U.S. imposed additional tariffs on $370 billion worth of Chinese goods.

  • These tariffs were divided into four lists:

    • Lists 1–3 carried a tariff rate of 25%.

    • List 4A had a tariff rate of 7.5%.

  • The U.S. Trade Representative (USTR) conducted a statutory four-year review of these tariffs in 2022, ultimately deciding to maintain them.

3. International Emergency Economic Powers Act (IEEPA)

Another potential legal tool for Trump is the International Emergency Economic Powers Act (IEEPA). This law grants the President authority to take economic measures, including imposing tariffs, if a national emergency is declared due to threats to U.S. national security.

Implications of Trump’s Tariff Policies

Trump’s proposed tariff increases rely on the above legal frameworks and are justified by citing threats to national security. This approach reflects a continuation of his protectionist trade policies, aiming to safeguard American economic interests. These measures, however, have far-reaching effects beyond relations with China, impacting other trade partners like Canada and Mexico.

List of Products Subject to New Tariffs

The proposed tariff increases include the following products and timelines:

Product

Proposed Tariff Rate

Effective Year

Battery parts (non-lithium-ion batteries)

Increase to 25%

2024

Electric vehicles

Increase to 100%

2024

Lithium-ion EV batteries

Increase to 25%

2024

Lithium-ion non-EV batteries

Increase to 25%

2026

Natural graphite

Increase to 25%

2026

Other critical minerals

Increase to 25%

2024

Permanent magnets

Increase to 25%

2026

Semiconductors

Increase to 50%

2025

Ship-to-shore cranes

Increase to 25%

2024

Solar cells (assembled or not)

Increase to 50%

2024

Steel and aluminum products

Increase to 25%

2024

Sources and References

Trump’s proposed tariffs, if implemented, could escalate trade tensions and reshape global supply chains, with significant ripple effects on industries, consumers, and international relations. Stay tuned for updates as these measures develop.


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