Trump considers century-old law for 50% tariffs proposal
US President Donald Trump is considering the immediate introduction of temporary tariffs on April 2, as reported in Tuesday's "Financial Times." According to the British newspaper, Trump may use a rarely utilized law that would allow him to impose tariffs as high as 50%.
The proposals being debated by officials aim to base the tariff system on stronger legal frameworks, which simultaneously allow the president to gather funds for the planned tax cuts.
Among the discussed plans is the initiation of investigations into trading partners under the so-called Section 301, which allows for unilateral retaliatory actions against countries that impose unfair trade barriers on the US.
Trump to use a tool from a century ago
Simultaneously, Trump is considering using a rarely utilized law from 1930, which allows for the immediate introduction of tariffs as high as 50%. According to lawyers and people close to the American administration, this might concern car imports and could happen "within the next few days," as suggested by the US president's announcement on Monday.
The "FT" reported that another option, although unlikely, is the implementation of Section 122 of the Trade Act, which allows for the imposition of tariffs of 15% for a period of 150 days.
The newspaper reads that although Trump has complained about the unfair treatment of the US by other countries, his officials are more focused on using tariffs to increase revenues in light of the planned tax cuts, rather than using this instrument as a bargaining chip in dealings with foreign capital.
As explained, this is why legal solutions are sought that would allow Trump to impose high tariffs on many trading partners as quickly as possible.
The US administration has not taken any specific actions so far, and the targets of the tariffs have yet to be established.
Unpredictable trade policy
"FT" noted that Trump's trade policy is unpredictable. It cited the example of the president's withdrawal from tariffs that were supposed to affect Mexico and Canada, which happened just a few hours after such a decision was made, following intense lobbying from businesses.
Since taking office at the White House on January 20, Trump has imposed a 25% tariff on all imports of steel and aluminum, as well as on many new products made from these two metals.
