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Trump has other tariff options after Supreme Court strikes down his worldwide import taxes

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Trump has other tariff options after Supreme Court strikes down his worldwide import taxes

WASHINGTON (AP) — President Donald Trump still has options to keep taxing imports aggressively even after the Supreme Court struck down the tariffs he imposed last year on nearly every country on earth.

The Justices didn’t buy the president’s sweeping claims of authority to impose tariffs as he sees fit. But Trump can re-use tariff powers he deployed in his first term and can reach for others, including one that dates back to the Great Depression.

“Their decision is incorrect,” Trump said Friday, calling the Supreme Court justices who ruled against his tariffs “fools and lapdogs” during a press conference. “But it doesn’t matter because we have very powerful alternatives.”

Indeed, the president has already said he will impose a 10% global tariff under a trade law that allows such duties for 150 days. After that, they can only be extended by Congress.

Trump also said he would use a range of other laws and regulations to impose new tariffs, though most of those statutes would require a legal process before duties could be imposed. And he pointed to his ability to use licenses to restrain imports, but offered few details.

Trump had claimed nearly boundless authority to impose tariffs under 1977 International Emergency Economic Powers Act (IEEPA). But opponents argued before the Supreme Court that that power wasn’t necessary because Congress delegated tariff power to the White House in several other statutes — though it carefully limited the ways the president could use the authority.

Tariffs have been a cornerstone of Trump’s foreign and economic policy in his second term, with double-digit “reciprocal” tariffs imposed on most countries, which he has justified by declaring America’s longstanding trade deficits a national emergency.

The average U.S. tariff has gone from 2.5% when Trump returned to the White House in January to nearly 17% a year later, the highest since 1934, according to calculations by Yale University’s Budget Lab.

The president acted alone even though the U.S. Constitution specifically gives the power to tax – and impose tariffs – to Congress.

“The Good News is that there are methods, practices, Statutes, and other Authorities, as recognized by the entire Court and Congress, that are even stronger than the IEEPA TARIFFS, available to me as President of the United States of America,” Trump posted on his social media site.

Countering unfair trade practices

The United States has long had a handy cudgel to wallop countries it accuses of engaging in “unjustifiable,” “unreasonable” or “discriminatory” trade practices. That is Section 301 of the Trade Act of 1974.

And Trump has made aggressive use of it himself — especially against China. In his first term, he cited Section 301 to impose sweeping tariffs on Chinese imports in a dispute over the sharp-elbowed tactics that Beijing was using to challenge America’s technological dominance. The U.S. is also using 301 powers to counter what it calls unfair Chinese practices in the shipbuilding industry.

There are no limits on the size of Section 301 tariffs. They expire after four years but can be extended.

But the administration’s trade representative must conduct an investigation and typically hold a public hearing before imposing 301 tariffs. On Friday, Trump also said the administration would initiate several more Section 301 investigations.

Experts have said Section 301 is useful in taking on China. But it has drawbacks when it comes to dealing with the smaller countries that Trump has hammered with reciprocal tariffs.

“Undertaking dozens and dozens of 301 investigations of all of those countries is a laborious process,” Veroneau said.

Targeting trade deficits

In striking down Trump’s reciprocal tariffs in May, the U.S. Court of International Trade ruled that the president couldn’t use emergency powers to combat trade deficits.

That is partly because Congress had specifically given the White House limited authority to address the problem in another statute: Section 122, also of the Trade Act of 1974. That allows the president to impose tariffs of up to 15% for up to 150 days in response to unbalanced trade. The administration doesn’t even have to conduct an investigation beforehand.

But Section 122 authority has never been used to apply tariffs, and there is some uncertainty about how it would work.

Protecting national security

In both of his terms, Trump has made aggressive use of his power — under Section 232 of Trade Expansion Act of 1962 — to impose tariffs on imports that he deems a threat to national security.

In 2018, he slapped tariffs on foreign steel and aluminum, levies he’s expanded since returning to the White House. He also plastered Section 232 tariffs on autos, auto parts, copper, lumber.

In September, the president even levied Section 232 tariffs on kitchen cabinets, bathroom vanities and upholstered furniture.

Section 232 tariffs are not limited by law but do require an investigation by the U.S. Commerce Department. It’s the administration itself that does the investigating – also true for Section 301 cases — “so they have a lot of control over the outcome,” Veroneau said.

Reviving Depression-era tariffs

Nearly a century ago, with the U.S. and world economies in collapse, Congress passed the Tariff Act of 1930, imposing hefty taxes on imports. Known as the Smoot-Hawley tariffs (for their congressional sponsors), these levies have been widely condemned by economists and historians for limiting world commerce and making the Great Depression worse. They also got a memorable pop culture shoutout in the 1986 movie “Ferris Bueller’s Day Off.”

Section 338 of the law authorizes the president to impose tariffs of up to 50% on imports from countries that have discriminated against U.S. businesses. No investigation is required, and there’s no limit on how long the tariffs can stay in place.

Those tariffs have never been imposed — U.S. trade negotiators traditionally have favored Section 301 sanctions instead — though the United States used the threat of them as a bargaining chip in trade talks in the 1930s.

In September, Treasury Secretary Scott Bessent told Reuters that the administration was considering Section 338 as a Plan B if the Supreme Court ruled against Trump’s use of emergency powers tariffs.

____

Associated Press Staff Writer Lindsay Whitehurst contributed to this story.

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The Dictatorship

The Latest: US hits pro-government demonstration in Iran as war threatens global economy

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Suspect in Temple Israel attack lost family in Israeli airstrikes

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Suspect in Temple Israel attack lost family in Israeli airstrikes

The suspect in an attack at a synagogue near Detroit lost several family members in an Israeli airstrike in Lebanon this month, according to the Islamic Institute of America in Dearborn and community leaders.

Ayman Mohamad Ghazali, a 41-year-old U.S. citizen originally from Lebanon, lost his two brothers and a niece and nephew in the strike on their home, according to those sources. Whether that played a role in the motive for the attack remains unclear, and Gov. Gretchen Whitmer deferred a question about it to the FBI on Friday, citing an ongoing investigation.

Authorities are looking at the possibility Ghazali may have had familial ties to Hezbollah in Lebanon, two law enforcement officials briefed on the investigation told MS NOW.

Ghazali died in the Thursday attack, in which authorities say he drove a car into Temple Israel in West Bloomfield, Michigan, injuring a security officer. Ghazali was a resident of Dearborn Heights, Mayor Mo Baydoun said in a Facebook post. Baydoun also said in that post that Ghazali “lost several members of his own family, including his niece and nephew, in an Israeli attack on their home in Lebanon” this month.

The Thursday attack in Michigan came as the U.S. and Israel wage a war with Iranwhich they launched on Feb. 28. Security around Jewish communities in places such as New York has been heightened since the conflict began.

Ghazali first came to the U.S. in 2011 on a spousal visa before being granted citizenship in 2016, a spokesperson for the Department of Homeland Security said.

In a phone interview with Fox host Brian Kilmeade, President Donald Trump appeared to blame former President Joe Biden for Ghazali’s entry into the country when asked about the Michigan attack and the deadly shooting at Old Dominion University in Michigan.

“They came in a lot through Biden, and they came in through other presidents, frankly, and it’s a disgrace,” Trump said.

Temple Israel describes itself as the country’s largest Jewish Reform congregation, and it also has an early childhood education center on site that more than 100 kids attend, Whitmer said. All children were safely evacuated following the attack, Oakland County Sheriff Michael Bouchard said.

“This is targeting babies who are Jewish,” Whitmer said. “That’s antisemitism at its absolute worst.”

The security guard who was injured was hospitalized but is expected to recover.

Whitmer on Friday thanked the synagogue’s security personnel, who she said “were selfless in their courage and they saved lives.”

Sen. Elissa Slotkin, D-Mich., added that if the synagogue’s private security, local law enforcement and first responders “had not all done their jobs almost perfectly, we would be talking about an immense tragedy here today with children gone.”

Andrew Bossone and Chris O’Leary contributed to this report.

Julianne McShane is a breaking news reporter for MS NOW who also covers the politics of abortion and reproductive rights. You can send her tips from a non-work device on Signal at jmcshane.19 or follow her on X or Bluesky.

Marc Santia is an investigative correspondent for MS NOW.

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Missile strikes a helipad inside the U.S. Embassy compound in Baghdad, Iraqi security officials say

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Missile strikes a helipad inside the U.S. Embassy compound in Baghdad, Iraqi security officials say

BAGHDAD (AP) — A missile struck a helipad inside the U.S. Embassy compound in Baghdad, two Iraqi security officials said.

Associated Press footage showed a column of smoke rising Saturday morning over the embassy compound.

The sprawling embassy complex, one of the largest U.S. diplomatic facilities in the world, has been repeatedly targeted by rockets and drones fired by Iran-aligned militias.

There was no immediate comment from the U.S. Embassy in Baghdad. On Friday, the embassy renewed its Level 4 security alert for Iraq, warning that Iran and Iran-aligned militia groups have previously carried out attacks against U.S. citizens, interests and infrastructure, and “may continue to target them.”

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