Trump Administration Plans to Restore Tariffs by July Using Trade Act Authority

Treasury Secretary Scott Bessent announced Tuesday that the Trump administration is on track to reinstate tariffs as early as July, pivoting to new legal authorities after the Supreme Court struck down the administration’s previous tariff framework earlier this year.

“We had a setback at the Supreme Court in terms of the tariff policy,” Bessent said at a Wall Street Journal event. “But we will be implementing or conducting Section 301 studies — so the tariffs could be back in place at the previous level by beginning of July.”

The administration’s rapid response comes after the Supreme Court ruled in February that the International Emergency Economic Powers Act (IEEPA) does not authorize tariffs, a decision that threatened to derail a cornerstone of President Donald Trump’s economic policy. Trump has repeatedly described tariffs as “life or death” for the U.S. economy, underscoring their central role in his administration’s strategy.

Prior to the court’s ruling, the U.S. had collected more than $133 billion in IEEPA tariff duties by mid-December, according to U.S. Customs and Border Protection data. That figure grew to approximately $166 billion by early March 2026, demonstrating the significant revenue generated by the disputed tariffs.

The administration has wasted no time seeking alternative legal pathways to preserve its tariff agenda. Their strategy now centers primarily on Section 301 of the Trade Act of 1974, which empowers the president and the U.S. Trade Representative to implement “retaliatory import restrictions” against countries found to engage in unfair or discriminatory trade practices that harm U.S. businesses.

Since the Supreme Court’s ruling, the administration has launched over 75 investigations under Section 301, according to a report from the Peterson Institute for International Economics. This represents an unprecedented surge in such investigations compared to historical averages over the past five decades.

Unlike the IEEPA authority, Section 301 requires a formal period of notice and public comment before implementation, which explains the July timeline for potential reinstatement. This procedural requirement creates a temporary gap in the administration’s ability to maintain tariff pressure on trading partners.

The administration hasn’t limited itself to Section 301, however. Last month, Trump announced new 10% global tariffs under Section 122 of the Trade Act—an emergency provision allowing presidents to unilaterally impose import fees up to 15% for 150 days to address severe balance of payments deficits or situations threatening the dollar’s value.

This Section 122 maneuver has already drawn significant legal opposition. Twenty-four state attorneys general filed a lawsuit challenging the move as an illegal attempt to circumvent the Supreme Court’s ruling. The U.S. Court of International Trade in Manhattan held a lengthy hearing last Friday as its three-judge panel considered the legality of Trump’s approach.

During the hearing, attorneys challenging the administration argued that accepting the government’s broad interpretation would effectively transform Section 122 into an all-purpose trade weapon, beyond what Congress intended. Justice Department lawyer Brett Shumate countered that Congress had deliberately provided presidents with extensive discretion to assess economic conditions.

“A trade deficit was a large driver of a balance of payments deficit in 1974 as it is today,” Shumate argued. “We’re not on the gold standard anymore. We don’t have a fixed currency, but we can still have balance-of-payment problems.”

The legal battles surrounding Trump’s tariff strategy highlight the administration’s determination to maintain its aggressive trade posture despite judicial obstacles. By leveraging multiple provisions within the Trade Act of 1974, the administration aims to sustain and potentially expand its tariff regime, which has become a defining feature of Trump’s economic policy.

As July approaches, businesses and trading partners are closely watching the administration’s Section 301 investigations, which could restore tariffs to previous levels and reshape global trade relationships in the coming months.