Trump Administration Pursues New Tariffs After Supreme Court Blocks IEEPA Levies

The Supreme Court invalidated IEEPA-based tariffs on Feb 20, 2024. Days later, the U.S. Trade Representative’s office opened two investigations—forced-labor compliance covering 60 economies (99% of imports) and excess-capacity covering 16 partners (70%). USTR Jamieson Greer scheduled early-March hearings, said the probes would finish by July, and announced 10% Section 122 tariffs effective immediately, expiring July 24. A follow-up hearing with 60 witnesses was set for Apr 28.

Associated Press

The forced-labor probe targets 60 economies (99% of imports); the overcapacity probe targets 16 partners (70%). Section 122 tariffs are 10% (max 15%) and lapse July 24. Prior IEEPA tariffs generated $166 billion; the administration projects $1.6 trillion over ten years. The ILO estimates 27 million forced-labor victims worldwide (2021).

Reuters

USTR Jamieson Greer said the investigations aim to prevent foreign producers from gaining an unfair cost advantage through forced labor. Treasury Secretary Scott Bessent said the government will replace lost tariff revenue with new import taxes, including under Section 301. President Trump said the new tariffs would increase Treasury revenue. The administration added that Section 301 tariffs must follow established procedures, making them less vulnerable to reversal than the IEEPA levies.

The Independent

Trade lawyer Joyce Adetutu warned the probes could be a “veiled… attempt to reinitiate the IEEPA tariffs.” Kenya Davis called the timeline “so condensed that it doesn’t make a lot of sense.” Scott Lincicome of the Cato Institute said the process merely replicates the overturned tariffs. Industry groups such as Jockey and the Consumer Technology Association warned Section 301 tariffs could harm compliant firms and urged alternative tools.

Associated Press

• “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 Independent

• “The president himself has said that new tariffs “are going to get us more money.” — Donald Trump, President

The Independent

• “If you believe the Treasury secretary and the president, then the cake is already baked,” — Scott Lincicome, Cato Institute

The Independent

• “Even if it is a veiled — or less-than-veiled — attempt to reinitiate the IEEPA tariffs, he still has the cover of the process itself,’’ said trade lawyer Joyce Adetutu, a partner at law firm Vinson & Elkins.” — Joyce Adetutu, Trade Lawyer, Vinson & Elkins

Associated Press

Reuters lists 60 economies in the forced-labor probe; Bloomberg Law cites 59 economies plus the EU, a minor discrepancy. AP says Section 122 tariffs expire “in less than three months,” but the statutory deadline is July 24, about five months later.

The Independent

New tariffs could raise consumer prices while restoring Treasury revenue lost after the court decision. Enforcing forced-labor standards may reshape supply chains for cotton, polysilicon and other commodities, affecting U.S. imports from China’s Xinjiang region and other high-risk sources.

Reuters