Trump Administration Considers 15% Tariffs on Imports from Deficit Countries

Coin WorldThursday, May 29, 2025 9:21 pm ET
1min read

The Trump administration is exploring an alternative measure to impose tariffs on a broad range of imports from various countries. This proposed action would utilize a provision of the Trade Act of 1974, specifically Section 122, which has not been previously invoked. Under this provision, the administration could implement tariffs of up to 15% on imports from countries with which the United States has significant trade deficits. These tariffs would be effective for a period of 150 days, after which they would expire unless extended by Congress.

The consideration of this measure comes in the wake of recent legal challenges to the administration's tariff policies. A federal appeals court has allowed President Trump's sweeping tariffs to remain in effect temporarily, following a decision by the U.S. Court of International Trade that blocked certain tariffs. The court's ruling has effectively halted the tariffs that were imposed last month on nearly all U.S. trading partners, as well as earlier levies on China, Mexico, and other countries.

The mechanism outlined in Section 122 of the Trade Act of 1974 allows for swift implementation of tariffs, which can be put in place within days. However, these tariffs are subject to specific limitations: they cannot exceed 15% and must expire after 150 days unless Congress takes action to extend them. This provision is designed to provide a temporary measure to address trade imbalances while allowing for further negotiations or legislative action.

The administration's exploration of this alternative measure underscores its commitment to using all available tools to address perceived trade imbalances and protect domestic industries. By leveraging Section 122, the Trump administration aims to maintain pressure on trading partners while navigating the legal and political landscape surrounding its tariff policies. This approach allows for a more targeted and time-limited application of tariffs, which could potentially mitigate some of the broader economic impacts associated with more sweeping tariff measures.

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