In a swift response to a Supreme Court ruling that invalidated his previous tariff regime, President Donald Trump has enacted a new economic strategy centered on a temporary 10% global import duty. The executive action, signed late Friday, utilizes Section 122 of the Trade Act of 1974—a rarely invoked statute granting presidential authority to address balance of payments deficits.
The temporary tariff measure will remain effective for 150 days, providing the administration breathing room to initiate multiple investigations under more conventional trade statutes. Treasury Secretary Scott Bessent confirmed the strategic shift would maintain comparable revenue levels despite the judicial setback, though through what he characterized as ‘a less direct and slightly more convoluted manner.’
This transitional period enables the Office of the U.S. Trade Representative to launch fresh probes under Section 301 of the Trade Act targeting ‘unreasonable and discriminatory’ trade practices. While specific nations weren’t identified in the executive order, ongoing investigations concerning China and Brazil suggest continued focus on major trading partners, with Vietnam and Canada potentially facing increased scrutiny.
The administration’s legal maneuvering leaves approximately $175 billion in previously collected tariffs subject to potential refunds, though officials indicated resolution would likely require extensive litigation lasting several years. Trade experts note that while the new approach creates prolonged uncertainty, it introduces more procedural regularity through established investigation frameworks requiring research, public commentary, and defined timelines.
Former U.S. Trade Representative Robert Lighthizer advocated for congressional action to modernize trade tools, reflecting broader administration intentions to institutionalize more durable tariff authorities beyond temporary measures.