Trump Considers Emergency Powers To Fast-Track Tariffs, Set To Rollout On April 2: Report

One of the strategies under discussion includes reviving a national security probe into the auto industry. If pursued, this could lead to vehicle import tariffs as soon as April 2, the report noted.

Some members of Trump's administration view tariffs not only as a bargaining tool but also as a means to generate revenue for proposed tax cuts.

Source : Unsplash

US President Donald Trump is reportedly considering a two-step strategy to implement his new tariff regime, which may include invoking emergency powers to impose immediate duties on imports while formal trade investigations continue.

According to a report by The Financial Times, officials are evaluating legal mechanisms to accelerate tariff enforcement.

While Trump has been vocal about his concerns over foreign trade practices, some members of his administration view tariffs not only as a bargaining tool but also as a means to generate revenue for proposed tax cuts.

The report, citing sources, suggested that various legal options are under review, including Section 301 investigations, the International Emergency Economic Powers Act, and Section 338 of the 1930 Tariff Act. These provisions could enable the government to impose duties of up to 50 per cent on select imports.

Potential Auto Tariffs and Trade Act Provisions

One of the strategies under discussion includes reviving a national security probe into the auto industry. If pursued, this could lead to vehicle import tariffs as soon as April 2, the report noted.

Additionally, Section 122 of the Trade Act of 1974 is being considered, which allows temporary tariffs of up to 15 per cent for a 150-day period, though it is seen as a less likely option. The administration is yet to finalise its approach, with discussions ongoing regarding the scope and targets of the tariffs.

Shortly after taking office, Trump set April 2 as the date for announcing new tariffs, referring to it as "liberation day." This declaration triggered diplomatic appeals from various foreign governments seeking exemptions.

Previously, the US President imposed a 25 per cent tariff on steel and aluminum imports, which was later expanded to include products containing these metals. He also initially extended tariffs to allies such as Canada and Mexico but later withdrew them following pressure from business groups.

Tariffs on Oil and Gas Purchases from Venezuela

Reaffirming his stance on trade measures, Trump on Monday reiterated his intention to impose "substantial" tariffs on trading partners, though he indicated that some nations might be granted exemptions.

"They have charged us so much that I am embarrassed to charge them what they have charged us, but it will be substantial," he said.

Later in the day, the American President announced a new 25 per cent tariff aimed at countries purchasing oil and gas from Venezuela, including India and China. "Venezuela has been very hostile to the United States and the freedoms we espouse," Trump stated on Truth Social. "Any country that buys oil and/or gas from Venezuela will be forced to pay a tariff of 25 per cent on any trade they do with our country."

A presidential order signed on Monday specified that the tariff could take effect as early as April 2, applying to both direct and indirect buyers of Venezuelan crude.