Trump quietly rebuilding tariff strategy

President Donald Trump is working to restore his tariff strategy after legal setbacks, but this time with a more deliberate approach than his earlier, high-profile tactics. The administration has moved quietly, using precise tools to rebuild what officials call a “tariff engine” that could produce long-lasting effects. Late Tuesday, U.S. Trade Representative Jamieson Greer released a 98-page report detailing findings from a months-long investigation into trading partners’ handling of goods made with forced labor.

The report identified 60 economies that the U.S. engages with, none of which fully prohibit or enforce restrictions on importing items produced by forced labor. Some, Greer noted, have taken “initial steps” but need to act faster. “This creates a dynamic where American workers are forced to compete globally on an unlevel playing field,” Greer said in a statement, citing the need for action.

As a remedy, Greer proposed a minimum 10% across-the-board tariff on trading partners investigated by the administration. This includes major blocs like Canada, Mexico, and the European Union. Countries such as China, Brazil, Japan, and India would face higher tariffs of 12.5% due to their lack of progress on forced labor issues. The tariffs are not yet in effect; the U.S. Trade Representative’s Office will hold hearings on the proposal on July 7 after a public comment period through July 6.

Trump’s strategy has shifted since the Supreme Court ruled in February that he lacked authority to use emergency powers for tariffs. Immediately after, he imposed a 10% tariff on imports for 150 days under Section 122 of the Trade Act of 1974. But a court later blocked that measure, calling it unjustified. The administration now appears to be leaning on Section 301, which allows investigations into trade practices that harm U.S. businesses.

Section 301 differs from Section 122 in one key way: there are no limits on the duration or level of tariffs imposed through it. Trump used this authority during his first term to raise tariffs on Chinese goods and European aircraft. The current approach mirrors that earlier strategy, though with more focus on legal precision.

Greer’s office is also examining over a dozen countries for excess manufacturing capacity, a separate investigation that could lead to additional measures. Meanwhile, the administration is appealing a federal judge’s order to repay $166 billion in tariffs collected under the now-invalid emergency authority. It has begun repaying some fees but delayed others, citing complexity in the process.

The government also challenged a court’s demand that Customs and Border Protection Commissioner Rodney Scott testify in person about the repayment process. Instead, the administration offered other executives with “more in-depth knowledge” of the issue. The appeal highlights ongoing legal battles that could shape the future of Trump’s tariff agenda.

The administration’s focus on Section 301 suggests a shift toward more permanent measures, unlike the temporary 150-day tariffs imposed earlier. This approach avoids the legal vulnerabilities that led to the Supreme Court’s ruling. However, the proposed tariffs on major economies like China and the EU indicate that the administration is not backing down on its economic goals.

With hearings and public comment periods underway, the next steps remain unclear. But the U.S. Trade Representative’s Office has signaled that these measures could become a lasting part of Trump’s economic strategy, even as legal challenges continue to test the administration’s authority.