SC verdict: What are options for the US?

The US Supreme Court on Friday stuck down the global tariffs imposed by Trump administration and ruled that the International Emergency Economic Powers Act does not authorize the President to impose tariffs. Soon after the verdict, President Donald Trump invoking his authority under section 122 of the Trade Act of 1974, imposed a 10 per cent ad valorem import duty on imports into the US.

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According to The Peterson Institute for International Economics, a independent research institution here are various other provisions that deals with tariff powers.

Section 122 of the Trade Act of 1974: allows the president to impose temporary tariffs to deal with balance of payments deficits. This authority has never been used in the 50 years since its enactment & the tariffs expire after 150 days unless Congress acts by passing a law to extend them.

Section 338 of the Tariff Act of 1930: authorizes tariffs to retaliate against foreign discrimination against American goods. This authority has never been used since its enactment nearly a century ago & and requires strong proof of discrimination.

Section 232 of the Trade Expansion Act of 1962: national security import restrictions for decades used only to restrict imports of oil but now used for steel, aluminum, copper, automobiles, wood products, & potentially a long and growing list of other products.

Section 301 of the Tariff Act of 1974: retaliatory authority against foreign unfair trade acts, a major source of the tariffs on goods from China.

Each of these authorities comes with requirements that make them unsuitable for restoring an across-the-board tariff wall, although they can be deployed in individual instances to restrict trade, Peterson Institute said.

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