US Trade Representative Greer: The goal on tariffs is continuity

US Trade Representative Greer: The goal on tariffs is continuity

US Trade Representative Greer: The Goal on Tariffs Is Continuity

The Trump administration has reaffirmed its commitment to maintaining its trade policy framework despite a landmark Supreme Court ruling that invalidated the use of the International Emergency Economic Powers Act (IEEPA) for imposing broad tariffs. U.S. Trade Representative Jamieson Greer emphasized that while the legal mechanisms may evolve, the administration's objectives remain unchanged—reducing the trade deficit, addressing unfair practices, and incentivizing reshoring.

The Supreme Court's 6-3 decision on February 21, 2026, ruled that IEEPA, enacted in 1977, does not authorize the president to impose tariffs, as the law does not explicitly mention duties or import taxes. These IEEPA-based tariffs accounted for 70% of the administration's global tariffs, including measures targeting China, Mexico, and Canada. In response, the administration has shifted to alternative statutory authorities, including Section 122 of the Trade Act of 1974, which allows for temporary import surcharges to address trade imbalances. President Trump recently imposed a 15% global tariff under this provision, a rate higher than the previous base rate of 10%.

Greer stated that the administration will also leverage Sections 301 and 232 of the Trade Act of 1974 to investigate and address unfair trade practices by major partners, including industrial overcapacity, forced labor, and discriminatory policies. Existing Section 301 tariffs on China, ranging from 7.5% to 100%, and Section 232 tariffs on steel and aluminum (10%–50%), will remain in place, covering 30% of U.S. imports.

However, the new Section 122 tariffs face limitations: they can only be enforced for 150 days without congressional approval and are capped at 15%. Greer acknowledged this reduces flexibility compared to IEEPA but argued that investigations provide durable tools to justify targeted tariffs.

International stakeholders, including the European Central Bank's Christine Lagarde, have expressed concerns about uncertainty, noting that businesses may eventually pass tariff costs to consumers. Meanwhile, bipartisan opposition in Congress remains, though Greer dismissed recent symbolic votes against tariffs as unrepresentative of broader support.

As the administration navigates legal and political challenges, its focus remains on sustaining trade measures aimed at reshaping global commerce in favor of U.S. interests.