Trump Administration Mulls Global Tariffs Of About 15% For 150 Days Under Existing Trade Laws: Report – NVIDIA (NASDAQ:NVDA)
The Trump administration is reportedly contemplating a stopgap measure to impose tariffs on a significant portion of the global economy for 150 days under an existing law. This move is being considered in response to a recent court ruling that invalidated a substantial part of President Donald Trump‘s tariffs.
What Happened: The administration is exploring a two-pronged strategy. Initially, it plans to activate an unused provision of the Trade Act of 1974 to impose broad tariffs that allow for tariffs of up to 15% for 150 days.
This approach would buy time to develop tailored tariffs for each major trading partner, using a separate provision of the same law intended to tackle unfair foreign trade practices, reported the Wall Street Journal.
The second step, which requires a lengthy notification and public comment period, is considered by administration officials to be more legally sound than the tariff policy recently struck down. This alternative provision has a history of use, including for Trump’s first-term tariffs on China.
A final decision has not been made, and the administration may delay its plans after a federal appeals court temporarily reinstated Trump’s broadest tariffs, following a trade court’s earlier ruling to block them immediately.
SEE ALSO: Trump Administration Axes $400 Million In State Unemployment System Upgrades, Calls It ‘Wasteful’: Report
Why It Matters: This move comes after a federal appeals court temporarily preserved Trump’s tariffs following a lower-court ruling that invalidated most of them.
Despite a federal court ruling against his authority to impose global tariffs, experts believe that Trump has several legal options to maintain tariffs.
These include Section 122 of the Trade Act of 1974, Section 301 investigations, and Section 338 of the Trade Act of 1930. The administration’s current consideration of a two-pronged approach to impose broad tariffs aligns with these expert views.
The stay on the court ruling will remain in place while the Trump administration appeals a trade court ruling, allowing it to argue for the tariffs’ suspension. Plaintiffs have one week to respond, and the administration must file its legal brief by June 9.
U.S. stocks closed 0.40% higher on Thursday, with the S&P 500 rising during the session, boosted by stronger-than-expected earnings from Nvidia Corp. NVDA and temporary relief on tariff woes due to the federal court ruling.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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