Below his America First Commerce Coverage, President Trump has made clear that his Administration intends to make use of each device out there to handle unfair commerce practices affecting U.S. firms, employees and nationwide safety.
Within the first two months of this Administration, President Trump has issued over a dozen government orders impacting worldwide commerce, lots of them imposing or threatening to impose new tariffs. What authority does a President should impose new tariffs? There are lots of legal guidelines that explicitly give the President authority to handle numerous nationwide considerations by the imposition of tariffs.
1. Worldwide Emergency Financial Powers Act (IEEPA)
Enacted in 1977, the IEEPA grants the President authority to manage worldwide commerce after declaring a nationwide emergency in response to any uncommon and extraordinary risk to the USA originating from overseas.
The regulation grants broad powers to the President to manage financial transactions, though it doesn’t point out tariffs particularly. President Trump invoked the IEEPA in 2025 to impose further tariffs on imports from Canada, Mexico, and China, citing nationwide safety considerations associated to unlawful immigration and drug trafficking. Previous to this, no President had used IEEPA to impose tariffs.
2. Part 301 of the Commerce Act of 1974
Sections 301-310 of the Commerce Act of 1974, also known as “Part 301,” grants authority to the USA Commerce Consultant to take motion in opposition to overseas nations that violate U.S. commerce agreements or interact in acts which can be “unjustifiable” or “unreasonable” and burden U.S. commerce.
USTR is allowed to conduct Part 301 investigations primarily based on petitions filed by individuals. USTR might also self–provoke Part 301 investigations. If USTR makes an affirmative willpower in an investigation, the company is allowed, beneath the path of the President, to impose tariffs, withdraw or droop commerce settlement concessions, or enter into a brand new settlement with a overseas authorities to cease the conduct.
Traditionally, Part 301 has typically been used to stress different nations to remove commerce boundaries. Latest 301 investigations embody China’s Pressured Know-how Switch Insurance policies and Practices; China’s Focusing on of the Semiconductor Business; and Nicaragua Labor Rights, Human Rights, and Rule of Regulation.
3. Part 232 of the Commerce Growth Act of 1962
Part 232 of the Commerce Growth Act of 1962 authorizes the President to regulate the importation of products that the Secretary of Commerce finds are being imported in such a manner that threatens nationwide safety. The primary Trump Administration used Part 232 to impose tariffs on metal (25%) and aluminum (10%) imports from most nations. In February 2025, the Trump Administration modified these Part 232 actions to impose 25% tariffs on each metal and aluminum.
Part 232 requires the Secretary of Commerce to conduct an investigation to find out the consequences on the nationwide safety of the imports in query following a petition by an “ get together” or a request by a U.S. division or company. Commerce might also self-initiate Part 232 investigations.
For the President to take motion beneath Part 232, the Secretary of Commerce should make an affirmative discovering within the investigation that the products are being imported into the USA in a manner that threatens to impair nationwide safety. Part 232 doesn’t require the President to comply with suggestions made by Commerce following an investigation.
4. Part 122 of the Commerce Act of 1974
Part 122 of the Commerce Act of 1974 grants the President the authority to impose momentary tariffs to handle “giant and severe United States balance-of-payments deficits” or different conditions that current “basic worldwide funds issues.” The part limits any tariffs imposed to fifteen% and 150 days.
Thus far, Part 122 has by no means been utilized by a U.S. President.
5. Part 201 of the Commerce Act of 1974
Part 201 of the Commerce Act of 1974 authorizes the President to impose tariffs if the Worldwide Commerce Fee (ITC) finds {that a} surge in imports is inflicting severe harm or threatening severe harm to a U.S. home trade.
The ITC is required to conduct a 201 investigation following a petition by an get together, a request from USTR, a request from the President, or a decision of the Senate Finance Committee or Home Methods and Means Committee. The ITC additionally has the authority to self-initiate an investigation.
The ITC usually should submit a report back to the President inside 180 days of initiating an investigation that features the investigation’s findings and the ITC’s suggestions. The President should then take motion to treatment the harm inside 60 days.
Tariffs imposed beneath 201 usually are not meant to be everlasting. The statute requires that actions in impact for a couple of 12 months be phased down at “common intervals.” For actions beneath 201 to remain in impact greater than 4 years, the ITC should make new findings in a follow-up continuing. As well as, tariffs imposed beneath 201 might not exceed 50% advert valorem above the speed current on the time the motion is taken.
6. Part 338 of the Tariff Act of 1930
Part 338 of the Tariff Act of 1930 empowers the President to impose further duties on imports from nations that discriminate in opposition to U.S. commerce. Part 338 directs the President to impose tariffs when a overseas nation both: 1) imposes unreasonable costs or rules on U.S. merchandise; or (2) disadvantages and discriminates in opposition to U.S. commerce “by or in respect to any customs, tonnage, or port obligation, charge, cost, exaction, classification, regulation, situation, restriction, or prohibition.” Tariffs imposed beneath Part 338 might not exceed 50% of the worth of the products
A U.S. president has by no means imposed tariffs beneath Part 338. Nonetheless, President Trump might invoke 338 in implementing new tariffs on nations which can be recognized beneath his February twenty first memo on Defending American Corporations and Innovators From Abroad Extortion and Unfair Fines and Penalties, or his February thirteenth memo on Reciprocal Commerce and Tariffs.
Staying Proactive in an Unsure Commerce Coverage Setting
Whereas these tariff will increase and altering commerce insurance policies will undoubtedly have a major affect on any enterprise concerned in importing items into the U.S., importers usually are not with out choices.
Now could be the time importers ought to audit their operations and compliance program and guarantee they’re working in essentially the most environment friendly manner doable. There are additionally a number of methods to legally decrease tariffs together with:
Responsibility Downside
Tariff Engineering
Nation of Origin Change
First Sale
Responsibility Deferral
Negotiate DDP Incoterm
Importers exploring choices to reduce tariff legal responsibility ought to all the time work with an knowledgeable to make sure they proceed to satisfy all U.S. Customs rules. Responsibility evasion is a severe crime and may end up in severe financial penalties and even jail time within the case of fraud.
At Diaz Commerce Regulation, now we have a powerful observe report in tariff minimization and customs compliance. To study extra about how we can assist, contact us at data@diaztradelaw.com or name us at 305-456-3830.
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