Trump admin to announce trade investigations, aimed at replacing IEEPA tariffs: Reports

• The Supreme Court ruled 6-3 on February 20 that Trump's reciprocal tariffs on most nations were unauthorized under IEEPA, forcing the administration to seek alternative legal authority
• Section 301 allows tariffs on countries engaging in unfair trade practices and has survived over 4,000 legal challenges, making it a more legally robust but slower-moving approach
• Trump imposed a temporary 10% 'universal baseline tariff' under Section 122 of the Trade Act, but these tariffs expire within 150 days

Summary: Trump Administration Plans New Trade Investigations to Replace Invalidated Tariffs

Key Developments:

The Trump administration is expected to announce new trade investigations as early as Wednesday, aimed at replacing reciprocal tariffs previously struck down by the Supreme Court. The investigations will be conducted under Section 301 of the Trade Act of 1974, according to The New York Times and Wall Street Journal.

Legal Background:

On February 20, the Supreme Court ruled 6-3 that President Trump lacked authority to impose reciprocal tariffs under the International Emergency Economic Powers Act (IEEPA) without Congressional authorization. In response, Trump signed an executive order imposing a 10% tariff under Section 122 of the Trade Act, though these tariffs expire within 150 days.

Section 301 Authority:

Section 301 allows the president to impose tariffs on countries engaging in unfair trade practices. This mechanism could replace the invalidated reciprocal tariffs affecting most global nations. The reports did not specify which countries would be targeted in the expected investigations.

Timeline and Outlook:

Treasury Secretary Scott Bessent told CNBC he expects U.S. tariff levels to return to pre-Supreme Court ruling levels by August. Bessent indicated the Office of the U.S. Trade Representative and Commerce Department will complete trade studies enabling new tariff implementation within five months.

Market Implications:

Bessent characterized Section 301 authorities as "more slow-moving, but more robust," noting they have "survived more than 4,000 legal challenges." This suggests a more legally defensible but protracted approach to trade policy, potentially creating extended uncertainty for international trade and businesses with global supply chains.