Trump Admin Plans Trade Investigations to Replace IEEPA Tariffs

• Section 301 investigations allow the president to impose tariffs on nations found engaging in unfair trade practices, potentially replacing IEEPA-based tariffs struck down by the Supreme Court in a 6-3 ruling on February 20
• Trump previously signed an executive order imposing a 10% 'universal tariff' under Section 122 of the Trade Act, but these tariffs expire within 150 days
• Bessent stated that Section 301 authorities have 'survived more than 4,000 legal challenges' and characterized them as more legally durable than the invalidated approach

Summary: Trump Administration Plans Section 301 Trade Investigations to Replace Struck-Down Tariffs

Key Development:

The Trump administration is expected to announce new trade investigations as early as Wednesday to replace reciprocal tariffs that the Supreme Court ruled illegal in February. These probes will be conducted under Section 301 of the Trade Act of 1974.

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). In response, Trump signed an executive order imposing a new 10% tariff under Section 122 of the Trade Act, which expires within 150 days.

Section 301 Authority:

Section 301 permits the president to impose tariffs on countries found engaging in unfair trade practices. Treasury Secretary Scott Bessent characterized this authority as more "robust" and "slow-moving," noting it has survived over 4,000 legal challenges.

Timeline and Projections:

Bessent predicted that by August, U.S. tariffs would return to levels existing before the Supreme Court ruling. The Office of the U.S. Trade Representative and Commerce Department will complete trade-related studies enabling additional tariff implementation within approximately five months.

Market Implications:

The shift from IEEPA to Section 301 authority suggests a more legally defensible but potentially slower tariff implementation process. While specific countries to be targeted were not disclosed, the administration's commitment to restoring previous tariff levels indicates sustained trade policy aggression. Markets should anticipate elevated trade tensions continuing through summer 2026, with potential impacts on international supply chains and bilateral trade relationships.

Reporting Sources: The New York Times and Wall Street Journal