Full Breakdown
Trump Administration Prepares New Tariff Round After Supreme Court Blocks IEEPA Levies
4/28/2026, 9:10:05 PM
New Tariff Initiative
The U.S. Trade Representative announced hearings on investigations that could trigger import duties. One probes 60 economies—from Nigeria to Norway—for forced-labor products, covering 99 % of U.S. imports. The other examines 16 partners, including China, the EU and Japan, for overproduction that depresses prices and accounts for 70 % of imports. Both use Section 301; a 10 % Section 122 tariff was imposed two days after the Supreme Court ruling and may rise to 15 % before July 24 expiry.
Legal and Policy Background
On 20 February the Supreme Court ruled President Trump exceeded authority under the 1977 Emergency Economic Powers Act (IEEPA) when he imposed double-digit tariffs on trading partners. IEEPA tariffs generated $166 billion before refunds. Section 122 allows 15 % duties for 150 days; Section 301 imposes no cap and permits tariffs for four years, renewable by Congress.
Officials and Official Statements
USTR Jamieson Greer warned forced-labor products give foreign producers a “cost advantage.” Treasury Secretary Scott Bessent said the Treasury will “replace its tariff revenues with import taxes.” President Donald Trump said new tariffs “are going to get us more money.”
Timeline
- 20 Feb 2024 – Supreme Court blocks IEEPA tariffs.
- 22 Feb 2024 – 10 % Section 122 tariffs imposed.
- 24 Jul 2024 – Section 122 tariffs expire unless extended.
Economic Stakes and Impact
The forced-labor probe covers economies that supply 99 % of U.S. imports; the overproduction probe covers 70 % of imports. IEEPA tariffs generated $166 billion before refunds. Section 122 duties sit at 10 % and may rise to 15% before July 24. Analysts estimate Section 301 tariffs could generate up to $6 trillion over next decade, though undisclosed. Tariffs are passed to consumers, adding cost of living, a focal point in the 2024 midterm election.
Criticism, Opposition, and Gaps
Analyst Scott Lincicome called the plan a “baked cake,” implying predetermined outcomes. Lawyer Joyce Adetutu warned the process may be a “veiled … attempt to reinitiate the IEEPA tariffs.” Sources do not disclose Section 301 tariff rates or the forced-labor hearing schedule, leaving uncertainty about when new duties could apply.
Verbatim Quotes
- “For too long, American workers and firms have been forced to compete against foreign producers who may have an artificial cost advantage gained from the scourge of forced labor,” — Jamieson Greer, U.S. Trade Representative
- “The president himself has said that new tariffs “are going to get us more money.” — President Donald Trump
- “If you believe the Treasury secretary and the president, then the cake is already baked,” — Scott Lincicome, Cato Institute’s Center for Trade Policy Studies
- “government will replace its original tariff revenues with new import taxes, including ones to be imposed under Section 301.” — Scott Bessent, Treasury Secretary
What’s Next
Section 122 duties expire on 24 July 2024; Congress may extend them, though political appetite is limited. The Section 301 investigations are expected to conclude before that date, prompting new tariffs that will face legal challenges. Replacing lost IEEPA revenue will shape trade policy and election dynamics.
