US media: Trump administration is considering imposing new tariffs

Beijing, February 24 (Xinhua) -- The US Supreme Court recently ruled that the massive tariffs imposed by the US President Trump's government under the International Emergency Economic Powers Act are illegal. Multiple US media outlets reported on the 23rd, citing informed sources, that the Trump administration is preparing to impose tariffs on six types of industry products by citing other legal provisions related to national security. These tariffs are different from the 15% tariffs newly introduced by the government after the Supreme Court ruling.

The media believes that the Trump administration's new tariff measures are expected to bring more uncertainty to the economy.

Find reasons to increase taxes

According to sources cited by The New York Times and other media outlets, the US Department of Commerce is initiating a new investigation under Section 232 of the 1962 Trade Expansion Act into products in industries such as large batteries, cast iron and iron fittings, plastic pipes, industrial chemicals, and power grid and telecommunications equipment (known as the "232 investigation"). This provision allows the US government to impose tariffs based on so-called 'national security risks'. The Wall Street Journal reported that it is currently unclear when the US Department of Commerce will officially announce the investigation and when the related tariffs will be officially imposed.

The Office of the United States Trade Representative is also initiating a new trade investigation under Section 301 of the 1974 Trade Act (known as the "301 Investigation"), which may also result in the imposition of tariff measures in the future. This clause allows the US government to impose tariffs on so-called 'unfair trade practices'. US Trade Representative Jamison Greer said in a statement on the 20th that the investigation will involve drug pricing, "discrimination against US technology companies and digital products and services," digital service taxes, and trade measures related to products such as seafood and rice.

According to The Wall Street Journal, the Trump administration has previously launched investigations under Section 232 into nine industries including semiconductors, pharmaceuticals, drones, industrial robots, and solar panels. Many investigations have been ongoing for nearly a year, and related work may accelerate after the Supreme Court ruling. The Trump administration also intends to modify the algorithm for imposing steel and aluminum tariffs on the grounds of "national security", which may lower the nominal tariff rates for many products, but at the same time, taxation will be based on the full value of the product rather than the value of its steel and aluminum components. This means that many companies may ultimately have to pay more tariffs.

On the 23rd, Trump claimed on social media that he has "ample other options" to impose tariffs on imported goods.

Add uncertainty

After the US Supreme Court announced its ruling on the 20th, the Customs and Border Protection agency under the US Department of Homeland Security recently confirmed that it will stop collecting import tariffs imposed under the International Emergency Economic Powers Act from the 24th local time. However, the Supreme Court ruling only applies to some of the tariffs imposed by the Trump administration, and the tariffs imposed on products such as steel, aluminum, furniture, copper, and automobiles, citing legal provisions such as Section 232 and Section 301, are still valid.

To replace the tariffs deemed illegal, Trump has announced a 15% tariff on goods from all countries and regions under Section 122 of the 1974 Trade Act. This provision allows the federal government to impose tariffs for up to 150 days, with extensions subject to congressional approval.

The New York Times believes that the tariffs pieced together by the Trump administration with multiple trade laws may not be able to be imposed quickly and arbitrarily, and may take several months to take effect. Lori Wallich, director of the "Rethinking Trade" project under the American Economic Freedom Program, expects that the Supreme Court ruling will not cause a "significant change" in US tariff rates because the Trump administration "will use other powers," but the Supreme Court's ruling will limit Trump's ability to use tariffs as a "punitive" measure on non trade issues.

The newspaper also believes that in the past year, the Trump administration has introduced a series of "unpredictable trade policies," and new tariff measures will bring more uncertainty to the economy. Greta Paisch, an American lawyer who served as a trade official under former Democratic President Biden, said, "We are even more uncertain about what tariffs will be like in the next month, two months, or six months than last week. Complexity and uncertainty are increasing