U.S. President Donald Trump delivers a speech at the White House on the 23rd (local time) during an event honoring the ‘Angel Families’ who lost relatives to illegal crime. Reuters Yonhap News
The Wall Street Journal (WSJ) reported on the 23rd (local time) that the Trump administration is considering imposing new tariffs on national security grounds following the Supreme Court ruling invalidating tariffs.
According to the report, multiple sources said the new tariffs are expected to be applied to six sectors: large batteries·cast-iron and steel components·plastic piping·industrial chemicals·the power grid·telecommunications equipment. They are to be imposed under Section 232 of the Trade Expansion Act, a measure separate from the 15% ‘global tariff’ that President Trump has already announced under Section 122 of the Trade Act.
Section 232 of the Trade Expansion Act allows the president to take actions such as imposing tariffs and restricting imports when specific imports are deemed to threaten U.S. national security. There is no legal cap on tariff rates or duration, and WSJ reported that “once imposed, the president can unilaterally change them.” However, because it requires a Commerce Department investigation of up to 270 days, it is uncertain when any tariffs would take effect.
The ‘national security tariffs’ under Section 232 have been floated as an alternative to the so-called ‘reciprocal tariffs,’ which the Trump administration had promoted as a core tool of its tariff policy. Because they have been maintained without becoming embroiled in serious legal controversyunlike reciprocal tariffsWSJ reported they could serve as a way to offset revenue losses from halting reciprocal tariffs.
In its second term, the Trump administration has already imposed tariffs under Section 232 on steel·aluminum·copper·auto parts. Investigations aimed at imposing additional tariffs are underway for nine sectors including semiconductors·pharmaceuticals·drones·industrial robots. The Supreme Court ruling has prompted speculation that the administration could further accelerate those investigations.
The administration is also pursuing plans to revise how existing tariffs on steel and aluminum are applied. Proposals under discussion include classifying steel·aluminum products by metal content and applying differentiated rates, and levying tariffs on the entire product rather than on the value of the steel·aluminum contained in it. WSJ analyzed that while headline tariff rates could fall under such changes, the tax base would broaden, potentially increasing the actual amounts paid.
Deputy White House Press Secretary Kushi Desai said in a statement that “protecting America’s national·economic security is President Trump’s top priority, and the administration will use all lawful authorities to achieve it.” Earlier, U.S. Trade Representative (USTR) Jamieson Greer also said he had begun work to rebuild tariffs using Section 232 of the Trade Expansion Act and Section 301 of the Trade Act.