US Trade Tariffs: The Trump administration is exploring an alternative route to impose tariffs on large swaths of the global economy, according to a Wall Street Journal report. Officials are considering invoking a rarely used statute that allows for temporary tariffs of up to 15 per cent for a duration of 150 days. The move is seen as a backup plan following a legal blow earlier this week that cast doubt on the administration’s current tariff authority.
Legal challenge to existing tariffs
A federal appeals court temporarily reinstated President Trump’s sweeping tariffs on Thursday, a day after the US Court of International Trade ruled that the administration had overstepped its authority. The trade court ordered an immediate halt to the tariffs, declaring that emergency economic powers were improperly used. However, the US Court of Appeals for the Federal Circuit paused that decision to review the government’s appeal. Parties involved must submit their responses by early June.
The blocked tariffs included Trump’s so-called “Liberation Day” duties on imports from key US trading partners such as Canada, Mexico, and China. These tariffs were part of a broader effort by Trump to combat the inflow of fentanyl and to use trade penalties as leverage in international negotiations. The court ruling had the potential to derail or delay these measures, prompting the administration to look for alternative legal foundations.
Trade talks continue
Meanwhile, despite the legal turbulence, Trump officials say international trade talks are proceeding as planned. Treasury Secretary Scott Bessent told Fox News that US trading partners remain engaged. “We’ve seen no change in their attitude,” Bessent said. “In fact, I have a very large Japanese delegation coming to my office first thing tomorrow morning.”
While the administration has yet to finalise any new tariff strategy, officials are reportedly preparing for multiple scenarios as the appeals process unfolds.