President Donald Trump's administration has built a new legal foundation to continue its protectionist policies after the Supreme Court struck down tariffs based on emergency law in February 2026. The administration is transforming customs duties from temporary measures into a more permanent policy grounded in formal investigations, using Section 301 of the Trade Act as its basis.
The Supreme Court's ruling emphasizing that taxing authority belongs to Congress initially pushed the Trump administration toward Section 122, a temporary solution. A global tariff of 10 percent was imposed under this section, but it has a 150-day limit.
Now the administration's focus has shifted to Section 301, previously used against China and continued under former President Joe Biden. This provision requires the Office of the United States Trade Representative (USTR) to conduct formal investigations into unfair trade practices, publish findings, and solicit public comment. Although the process is longer, resulting decisions hold up better in court.
Transition to a permanent protectionist system
Economist Mustafa Yusuf, speaking to Al Jazeera, said the Trump administration did not abandon its project after the court defeat, but merely changed its "legal guise." Yusuf stated, "Tariffs based on emergency law were quick but legally fragile political tools. Section 301, on the other hand, offers a much more robust framework because it rests on formal investigations and institutional processes, and there is no specific time limit."
Yusuf emphasized that this transformation means Washington is moving from an "emergency measure" to building a "protectionist infrastructure," making tariffs more sustainable even after Trump's term ends.
The first concrete step under Section 301 was taken on July 24, when new tariffs targeting 60 economies that make up about 99.4 percent of US imports went into effect. Imposed on the grounds of combating forced labor, the tariffs were set at 12.5 percent for countries deemed to have taken insufficient measures, and 10 percent for those that have made commitments.
International relations expert Professor Kamil el-Sari said the Trump team's real goal is to pressure countries into bilateral deals before court proceedings conclude. El-Sari stated, "Washington aims to secure political and commercial gains even as the legal battles continue."
Meanwhile, the USTR is continuing excess capacity investigations covering 16 major trading partners, led by China. These probes could pave the way for new tariffs targeting sectors such as semiconductors, batteries, automobiles, chemicals, and industrial equipment.
Economic costs and revenue projections
The economic impact of the new tariffs remains a topic of debate. According to responsible estimates by the Federal Budget Committee, the new levies under Section 301 and the Section 338 tariffs on Canada could generate approximately $950 billion in revenue by 2036. However, this figure falls well short of the $1.7 trillion expected under the emergency law.
Experts point out that most of the tariffs are ultimately passed on to American consumers as price hikes. Calculations by the Yale University Budget Lab show that if current policies persist, they could add more than $1,000 a year to American households. Additionally, the risk of retaliation from trade partners and new disruptions in global supply chains is causing concern.
Economist David Payne said the Trump administration's shift to Section 301 is a direct consequence of the Supreme Court's ruling. Payne stated, "The administration initially used Section 122 temporarily, but was aware of its limited duration. Section 301 is more durable under judicial review because it is based on formal investigations, but the process is slower and more complex."
