Trump builds customs wall with new legal strategy

The U.S. administration, under President Donald Trump, is moving to a more entrenched phase of its trade strategy. It is now relying on traditional, legally tested laws to build a "customs wall" targeting trade partners. This shift follows earlier judicial setbacks for its initial plans.

Trump began his presidency with swift customs decisions, bypassing lengthy investigations for immediate concessions, which caused confusion in the trade agenda. His team is now focusing on deeper legal tools. This began with imposing tariffs ranging from 10% to 12.5% on 60 countries, citing weak enforcement of forced labor bans.

These measures are the first in a series of anticipated actions. Future steps include investigations into industrial overproduction and alleged intellectual property theft in Vietnam. The administration also plans measures to protect national security in advanced technology sectors like semiconductors, robotics, and industrial machinery.

Dan O'Gock, an international trade legal consultant at "Synovus Energy," believes Washington is finalizing the first phase. He anticipates that significant parts of Trump's trade policy will be fully operational by the end of summer. While these specific measures might offer companies more predictability regarding final tariff structures, trade ministries worldwide are concerned. They face increasing pressure to make new concessions to maintain access to the U.S. market, which imports a substantial $3.4 trillion.

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Washington is putting the final touches on the first phase, and we expect large parts of Trump's trade policy to come into full effect by the end of the summer.