Trump weighs new tariffs on batteries, chemicals, telecom gear
What's the story
US President Donald Trump is considering a fresh round of national security tariffs on some six sectors. The move comes after the Supreme Court recently ruled a large portion of his earlier tariff measures were unlawful. The proposed duties would target industries such as large batteries, cast iron and iron fittings, plastic pipes, industrial chemicals, and equipment for power grids and telecommunications.
Legal framework
Proposed tariffs under Section 232 of the Trade Expansion Act
The proposed tariffs would be imposed under Section 232 of the Trade Expansion Act of 1962. This provision allows the president to impose tariffs on imports that are considered a threat to national security. The planned measures would be separate from additional tariffs Trump announced after last week's court ruling.
Past actions
Trump's previous use of Section 232
Trump has previously used Section 232 to impose tariffs on steel, aluminium, copper and auto parts. These tariffs remain in place and were not impacted by the Supreme Court's ruling. The broader market reaction saw mixed results in Asia-Pacific stocks as investors weighed Trump's renewed tariff threats against fears that AI advancements could disrupt software companies.
Tariff response
Trump's threat of global tariff hike
On Monday, Trump posted on Truth Social that countries trying to "play games" with the Supreme Court's ruling will face much higher tariffs. This came after the court struck down tariffs imposed under the International Emergency Economic Powers Act. In retaliation, Trump imposed a 15% global tariff under Section 122 of the Trade Act of 1974. These tariffs can remain in effect for up to 150 days without congressional approval.