Trump's Resurrected Trade Law: A Fast-Acting Tool for Reciprocal Tariffs

President Donald Trump is considering using the rarely invoked Section 338 of the Trade Act of 1930 to impose immediate tariffs on countries with higher import taxes that discriminate against U.S. commerce. This move aims to bring U.S. tariff rates in line with global counterparts.

President Donald Trump is exploring the use of a long-forgotten trade law to impose reciprocal tariffs, a move that could expedite his efforts to align U.S. tariff rates with other countries. Experts suggest Section 338 of the Trade Act of 1930 will serve as a quick-action tool.

Trump's plan involves employing this rarely used law to counteract countries with higher import tariffs that discriminate against U.S. goods, with the potential for tariffs of up to 50%. This strategy comes amid Trump's ongoing frustration with the disparity in global tariff rates, particularly concerning EU auto tariffs.

Trade experts suggest this approach offers immediate action compared to other slower processes like the Section 232 for national security tariffs. While some legal challenges are anticipated, the strategy focuses on addressing existing inconsistencies in global trade agreements.