Under his America First Trade Policy, President Trump has made clear that his Administration intends to use every tool available to address unfair trade practices affecting U.S. companies, workers and national security.
In the first two months of this Administration, President Trump has issued over a dozen executive orders impacting international trade, many of them imposing or threatening to impose new tariffs. What authority does a President have to impose new tariffs? There are many laws that explicitly give the President authority to address various national concerns through the imposition of tariffs.
1. International Emergency Economic Powers Act (IEEPA)
Enacted in 1977, the IEEPA grants the President authority to regulate international commerce after declaring a national emergency in response to any unusual and extraordinary threat to the United States originating from abroad.
The law grants broad powers to the President to control economic transactions, although it does not mention tariffs specifically. President Trump invoked the IEEPA in 2025 to impose additional tariffs on imports from Canada, Mexico, and China, citing national security concerns related to illegal immigration and drug trafficking. Prior to this, no President had used IEEPA to impose tariffs.
2. Section 301 of the Trade Act of 1974
Sections 301-310 of the Trade Act of 1974, often referred to as “Section 301,” grants authority to the United States Trade Representative to take action against foreign countries that violate U.S. trade agreements or engage in acts that are “unjustifiable” or “unreasonable” and burden U.S. commerce.
USTR is authorized to conduct Section 301 investigations based on petitions filed by interested persons. USTR may also self–initiate Section 301 investigations. If USTR makes an affirmative determination in an investigation, the agency is authorized, under the direction of the President, to impose tariffs, withdraw or suspend trade agreement concessions, or enter into a new agreement with a foreign government to stop the conduct.
Historically, Section 301 has often been used to pressure other countries to eliminate trade barriers. Recent 301 investigations include China’s Forced Technology Transfer Policies and Practices; China’s Targeting of the Semiconductor Industry; and Nicaragua Labor Rights, Human Rights, and Rule of Law.
3. Section 232 of the Trade Expansion Act of 1962
Section 232 of the Trade Expansion Act of 1962 authorizes the President to adjust the importation of goods that the Secretary of Commerce finds are being imported in such a way that threatens national security. The first Trump Administration used Section 232 to impose tariffs on steel (25%) and aluminum (10%) imports from most countries. In February 2025, the Trump Administration modified these Section 232 actions to impose 25% tariffs on both steel and aluminum.
Section 232 requires the Secretary of Commerce to conduct an investigation to determine the effects on the national security of the imports in question following a petition by an “interested party” or a request by a U.S. department or agency. Commerce may also self-initiate Section 232 investigations.
For the President to take action under Section 232, the Secretary of Commerce must make an affirmative finding in the investigation that the goods are being imported into the United States in a way that threatens to impair national security. Section 232 does not require the President to follow recommendations made by Commerce following an investigation.
4. Section 122 of the Trade Act of 1974
Section 122 of the Trade Act of 1974 grants the President the authority to impose temporary tariffs to address “large and serious United States balance-of-payments deficits” or other situations that present “fundamental international payments problems.” The section limits any tariffs imposed to 15% and 150 days.
To date, Section 122 has never been used by a U.S. President.
5. Section 201 of the Trade Act of 1974
Section 201 of the Trade Act of 1974 authorizes the President to impose tariffs if the International Trade Commission (ITC) finds that a surge in imports is causing serious injury or threatening serious injury to a U.S. domestic industry.
The ITC is required to conduct a 201 investigation following a petition by an interested party, a request from USTR, a request from the President, or a resolution of the Senate Finance Committee or House Ways and Means Committee. The ITC also has the authority to self-initiate an investigation.
The ITC generally must submit a report to the President within 180 days of initiating an investigation that includes the investigation’s findings and the ITC’s recommendations. The President must then take action to remedy the injury within 60 days.
Tariffs imposed under 201 are not meant to be permanent. The statute requires that actions in effect for more than one year be phased down at “regular intervals.” For actions under 201 to stay in effect more than four years, the ITC must make new findings in a follow-up proceeding. In addition, tariffs imposed under 201 may not exceed 50% ad valorem above the rate existing at the time the action is taken.
6. Section 338 of the Tariff Act of 1930
Section 338 of the Tariff Act of 1930 empowers the President to impose additional duties on imports from countries that discriminate against U.S. commerce. Section 338 directs the President to impose tariffs when a foreign country either: 1) imposes unreasonable charges or regulations on U.S. products; or (2) disadvantages and discriminates against U.S. commerce “by or in respect to any customs, tonnage, or port duty, fee, charge, exaction, classification, regulation, condition, restriction, or prohibition.” Tariffs imposed under Section 338 may not exceed 50% of the value of the goods
A U.S. president has never imposed tariffs under Section 338. However, President Trump may invoke 338 in implementing new tariffs on countries that are identified under his February 21st memo on Defending American Companies and Innovators From Overseas Extortion and Unfair Fines and Penalties, or his February 13th memo on Reciprocal Trade and Tariffs.
Staying Proactive in an Uncertain Trade Policy Environment
While these tariff increases and changing trade policies will undoubtedly have a significant impact on any business involved in importing goods into the U.S., importers are not without options.
Now is the time importers should audit their operations and compliance program and ensure they are operating in the most efficient way possible. There are also several ways to legally minimize tariffs including:
- Duty Drawback
- Tariff Engineering
- Country of Origin Change
- First Sale
- Duty Deferral
- Negotiate DDP Incoterm
Importers exploring options to minimize tariff liability should always work with an expert to ensure they continue to meet all U.S. Customs regulations. Duty evasion is a serious crime and can result in serious monetary penalties or even prison time in the case of fraud.
At Diaz Trade Law, we have a strong track record in tariff minimization and customs compliance. To learn more about how we can help, contact us at info@diaztradelaw.com or call us at 305-456-3830.
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