The Donald Trump administration in the United States announced that it could impose tariffs by other means, even if the judiciary decides that President Trump's mutual tariffs are unconstitutional. This follows the judiciary's attempt to halt President Trump's mutual tariff imposition, which was based on the International Emergency Economic Powers Act (IEEPA).
Kevin Hassett, Chairperson of the White House National Economic Council (NEC), noted in an ABC interview on the 1st (local time) that "there could be other alternatives we can pursue to make America's trade fair again."
He cited the Trade Expansion Act Section 232, the Trade Act Section 301, and Tariff Act Section 338 as alternatives. The Trade Expansion Act Section 232 gives the executive branch the authority to impose tariffs if it deems that the import of certain items threatens national security. Additionally, the Trade Act Section 301 grants the executive branch the authority to respond to unfair, unreasonable, or discriminatory actions, policies, and practices of foreign governments that restrict U.S. trade or impose burdens.
Tariff Act Section 338 grants the President the authority to impose tariffs of up to 50% on countries that have implemented discriminatory measures in trade with the United States. However, this has reportedly never been invoked.
The U.S. Court of International Trade (USCIT) stated on May 28 that the Constitution grants taxing authority to Congress, not the President, and that this cannot be overturned by the President's emergency powers to protect the U.S. economy. This invalidated all tariff-related executive orders issued by President Trump based on the IEEPA.
In response, the Trump administration immediately appealed. The appeals court has since decided to suspend the effect of the USCIT ruling.
Commissioner Hassett said, "Our approach through the IEEPA is the quickest and most legally sound way," adding that "we are confident judges will uphold this law."
He also mentioned that President Trump is expected to discuss trade negotiations with Chinese President Xi Jinping sometime this week. However, regarding the specific schedule, he only said, "discussions have been ongoing between the two countries."