economy
February 24, 2026
Trump tariffs: what 'powerful' trade weapons are at the US president's disposal?
A 10% levy has been put in place, but the US leader has other economic 'bazookas' he can fire in his trade battle.
TL;DR
- Donald Trump imposed a 10% tariff on imports, with a potential for 15%.
- Several trade weapons are available to Trump, including sections of the 1974 and 1930 Trade Acts.
- Section 122 allows for up to 15% tariffs for 150 days, requiring congressional approval thereafter.
- Section 301 permits unlimited tariffs against countries with unfair trade practices, but requires investigation.
- Section 201 allows trade barriers to protect domestic industries from serious injury.
- Section 338 of the 1930 Trade Act permits tariffs up to 50% or import bans, though it hasn't been used since 1935.
- Section 232 is currently used for sectoral tariffs on goods like steel, aluminum, cars, and semiconductors.
- Discussions are ongoing for new Section 232 tariffs on pharmaceuticals, critical minerals, commercial aircraft, and other items.
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