Trump Revives Tariff Push Using Trade Act Section 301 After Supreme Court Ruling

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President Donald Trump has revived his tariff drive by turning to Section 301 of U.S. trade law after the Supreme Court blocked his earlier approach. With broad tariffs facing legal limits, the administration is shifting its legal basis to keep up pressure. Inside the United States, industries are split over additional duties, while abroad the European Union has mounted open opposition.

The Office of the U.S. Trade Representative said on May 5 (local time) it is holding Section 301 hearings through May 8 on what it calls structural overcapacity. The review covers 16 economies, including China, the EU, South Korea, Japan, Mexico and Vietnam. The process is meant to determine whether their policies and practices burden U.S. industry and could serve as grounds for future tariffs.

In February, the U.S. Supreme Court ruled illegal global tariffs Trump imposed under the International Emergency Economic Powers Act. After that, the Trump administration imposed a temporary 10% tariff on imports worldwide and moved to rely on other trade laws, including Section 301. The current hearings are widely seen as a follow-up step.

U.S. industry groups have taken opposing positions. The steel industry argued that excess capacity not only in China but also in the EU and South Korea is worsening global oversupply and that additional tariffs are needed. The American Soybean Association warned new tariffs could again disrupt U.S.-China negotiations. The footwear retail industry also opposed the move, saying it could raise consumer-goods prices.

The EU responded most forcefully, urging the United States to honor existing trade agreements. After the United States warned it could raise tariffs on EU-made cars and trucks back to 25%, the EU said both sides should return to the 15% level they had agreed on. French President Emmanuel Macron said the bloc should consider, if necessary, its Anti-Coercion Instrument.

South Korea, rather than escalating publicly as the EU has, emphasized market principles and restructuring efforts. In the hearing, the South Korean government said “Korea’s industrial structure is based on market-economy principles” and that “voluntary restructuring and institutional support are being carried out even for items with overproduction.” On its trade surplus with the United States, it also cited the complementarity of the two countries’ industries and cooperation on strategic investment.

* This article has been translated by AI.

AJP