In the case of China, Trump accused the nation of failing to fulfill promises to curb the export of illicit drugs to the U.S. He declared the 10% tariff would remain until China demonstrated compliance.
Legal Routes for Implementation
It remains unclear how Trump plans to enforce these tariffs, but several legal mechanisms are available, each with differing levels of scrutiny.
- International Emergency Economic Powers Act (IEEPA): This law allows the president to impose tariffs unilaterally in response to a national emergency. Trump previously invoked similar authority to pressure Mexico during his first term.
- Section 301 of the Trade Act: Frequently used during Trump’s initial presidency, this provision allows for tariffs to counteract unfair trade practices, such as those alleged against China.
- Section 232 of the Trade Expansion Act: This authority permits tariffs based on national security concerns and was used for steel and aluminum duties during Trump’s earlier administration.
Trump’s proposals come with potential legal challenges, especially as his previous tariff actions often tested the limits of executive power.
Building on Existing Trade Policies
The 10% tariff on Chinese goods is significantly lower than the 60% rate Trump floated during his campaign but extends existing duties ranging from 7.5% to 25% initiated in his first term. Notably, President Joe Biden has upheld many of these Trump-era tariffs and even expanded them in critical industries like semiconductors, solar cells, and electric vehicles.
