President Donald Trump is considering a two-step approach to implementing new tariffs, including using rarely used emergency powers to impose immediate duties while trade investigations are ongoing, according to the Financial Times. His administration is still discussing a trade strategy, in which tariffs are used not only as a negotiating tool but also as a source of revenue to finance planned tax cuts.
Trump has vowed to announce a “reciprocal” tariff regime on April 2, a date he has dubbed “Liberation Day.” However, he has signaled that some countries may be exempted.
According to reports, the administration is considering launching Section 301 investigations of trading partners while using emergency powers such as the International Emergency Economic Powers Act or Section 338 of the 1930 Tariff Act, which allows tariffs of up to 50%. In addition, Trump may also revive a national security review from his first term to allow immediate tariffs on vehicle imports.
While some officials favor a phased approach, others want the tariffs to be imposed in full and immediately. The Trump administration is now actively seeking legal avenues to implement the tariffs quickly, prompting foreign governments to lobby at the last minute to avoid new sanctions.
In an effort to secure a waiver, the EU Trade Commissioner is scheduled to meet senior US officials on Tuesday to negotiate any concessions before Trump makes a final decision.
