Trump administration races to rebuild tariff wall knocked down by Supreme Court

The U.S. Treasury is scrambling to replace billions in lost revenue after the Supreme Court invalidated key tariffs imposed by the Trump administration. These tariffs had previously swelled government coffers with double-digit taxes on imports from nearly every nation.

The Supreme Court's February ruling struck down the most significant tariffs, forcing the administration to seek alternatives. Initially, the president turned to Section 122 of the Trade Act of 1974, authorizing 10% tariffs globally. However, these are only permitted for 150 days and are set to expire on July 24, with Congress unlikely to extend them amid voter concerns over the cost of living.

Trade attorneys and analysts are confident the administration will succeed in replacing the expiring tariffs with more durable ones under Section 301 of the same 1974 trade law. This section allows the president to impose sanctions on countries engaging in unfair trade practices. The administration has already begun this process, recently announcing 25% tariffs on some Brazilian imports.

The legal defeat meant the administration had to issue refunds, turning tariffs from a windfall into a drain. Revenue from import taxes peaked at over $31.4 billion last October but dwindled significantly in subsequent months, resulting in a substantial loss in June.

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They're going to raise the tariff wall again