Trump administration races to replace Supreme Court‑blocked tariff wall

The U.S. Treasury’s import‑tax revenue, which peaked at more than $31.4 billion in October, fell sharply after the Supreme Court ruled in February that President Donald Trump could not use the 1977 International Emergency Economic Powers Act to impose broad tariffs. The decision forced refunds to importers and left the Treasury with a $25.6 billion loss in June.

Facing a July 24 deadline, the administration has moved from the temporary 150‑day Section 122 tariffs to the more durable Section 301 authority, which allows tariffs and sanctions against countries deemed to engage in unfair trade practices. The White House has already announced 25 % tariffs on selected Brazilian imports and is expected to target China again. Trade lawyer Ryan Majerus said, “They’re going to raise the tariff wall again.”

Congress would need to extend the Section 122 tariffs, but lawmakers are unlikely to act before the November 3 midterm elections. The administration argues that Section 301 tariffs, while not limitless, provide a rule‑based framework that could reduce business uncertainty, though former trade official Sarah Bianchi cautioned that “there’s less uncertainty but not no uncertainty.”