Trump administration races to rebuild US tariff wall knocked down by Supreme Court

The U.S. Treasury last year swelled with revenue from President Donald Trump’s double-digit taxes on imports from almost every country on earth

WASHINGTON -- The U.S. Treasury last year swelled with revenue from President Donald Trump’s double-digit taxes on imports from almost every country on earth.

But the money dried up after the Supreme Court struck down the biggest and boldest of Trump’s tariffs in February.

The question now is: Can the president’s trade team make good on its promise to replace the lost revenue?

After the Supreme Court setback, the president turned first to Section 122 of the Trade Act of 1974 to impose 10% tariffs globally. But Section 122 only authorizes tariffs for 150 days. Trump’s expire on July 24. Congress would have to extend those tariffs — something lawmakers are unlikely to do as the Nov. 3 midterm elections approach amid voter discontent over the high cost of living.

But the administration has more durable options: Section 301 of the same 1974 trade law permits the president to impose tariffs and other sanctions against countries found to engage in “unjustifiable,” “unreasonable” or “discriminatory” trade practices. Trump used Section 301 to impose big tariffs on China in his first term and is rolling them out again — as recently as late Wednesday when he announced 25% tariffs on some Brazilian imports, charging the world’s 11th-biggest economy with a host of unfair trade practices.

Trade attorneys and analysts are confident the tariff-happy Trump administration will manage to beat the clock and swap out Section 122 tariffs with bigger Section 301 tariffs by the July 24 deadline. “They’re going to raise the tariff wall again,’’ said trade lawyer Ryan Majerus, a partner at King & Spalding and a trade official in Trump's first administration and in President Joe Biden's.

Trump last year tested – and exceeded – the limits of his authority to impose import taxes, a power the U.S. Constitution gives Congress. He invoked the 1977 International Emergency Economic Powers Act (IEEPA) to slap big tariffs on most of the world’s countries.

He justified the levies, which marked a stunning reversal of decades of U.S. policy in favor of lower tariffs and freer trade, by labeling America’s longstanding trade deficits a national emergency.

The Supreme Court didn’t buy it, ruling in February that the president couldn’t use the emergency powers law to impose tariffs at all. The legal defeat meant the administration had to send refunds to importers that had paid the levies.

As a result, tariffs have at least temporarily gone from