President
The court said that Trump exceeded his authority by invoking the International Emergency Economic Powers Act to justify his sweeping “reciprocal” duties targeting America’s trading partners, as well as separate levies aimed at China, Canada and Mexico.
WATCH: The US Supreme Court struck down President Donald Trump’s global tariffs, saying he exceeded his authority. Bloomberg’s Nathan Dean and Mike McKee discuss how President Trump may respond to the decision. Source: Bloomberg
The ruling invalidates a large portion of the tariffs that Trump has rolled out in his second term, but there are other ways that he can introduce import taxes. While the Constitution gives Congress the power to levy taxes and duties, lawmakers have delegated some authority to the executive branch through a number of statutes.
What are Trump’s options beyond IEEPA?
After the Supreme Court issued its decision, Trump said that
The president has at least five fallback options, including Section 122, to impose tariffs in different ways. In general, these alternatives come with limits and procedural restrictions that Trump sought to avoid by using IEEPA as the basis for tariffs, meaning there’s less leeway for him to impose the levies virtually immediately and set the rates as high as he chooses.
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Section 122 of the Trade Act of 1974
What it permits:
Section 122 gives the president the ability to impose tariffs to address “fundamental international payments problems.” He doesn’t need to wait for a federal agency to conduct an investigation before he can implement the tariffs.
Limitations:
The conditions for using Section 122 powers are to remedy “large and serious” US balance-of-payments deficits, to help correct an international balance-of-payments disequilibrium, or to prevent an “imminent and significant” depreciation of the dollar.
The tariffs are capped at 15% and can only be imposed for up to 150 days. Congressional approval is required to keep the duties in place for longer.
Previous uses:
Section 122 hasn’t been used before. When responding to the legal challenges to Trump’s use of IEEPA brought by five small businesses and the attorneys general of 12 states, the US Court of International Trade pointed out in May that if Trump wanted to impose tariffs to remedy trade deficits, this would fall under the purview of Section 122, not IEEPA.
Section 232 of the Trade Expansion Act of 1962
What it permits:
Section 232 gives the president power to use tariffs to regulate the import of goods on national security grounds. There’s no cap on the level of the duties or their duration.
Limitations:
These tariffs can’t be imposed instantly — the president can only act after an investigation by the
Unlike the blanket tariffs Trump imposed using IEEPA, Section 232 is designed to be applied to imports in individual sectors, rather than from entire countries.
Previous uses:
Trump used Section 232 to set tariffs on steel and aluminum imports in 2018 during his first term in office. He resumed his focus on these two industrial metals upon returning to the White House, leaning on the findings of the 2018 investigations to impose 50% tariffs. He also introduced levies on imports of automobiles and auto parts based on the conclusions of a Section 232 investigation completed in 2019.
Other foreign goods Trump has hit with Section 232 tariffs in his second term include semi-finished and so-called derivative
Section 201 of the Trade Act of 1974
What it permits:
Section 201 authorizes the president to impose tariffs if an increase in imports is causing or threatening serious injury to American manufacturers.
Limitations:
Section 201 tariffs can’t be rolled out immediately either. The US International Trade Commission must first conduct an investigation and has 180 days after a petition is filed to deliver its report to the president. Unlike the Section 232 probes, the ITC is required to hold public hearings and solicit public comments. Section 201 is also focused at the industry level rather than a broad tax on all imports from a trading partner.
The tariffs are capped at 50% above the rate of any existing duties. They can be imposed for an initial period of four years and extended to a maximum of eight years. If the levies are in place for more than a year, they must be phased down at regular intervals.
Previous uses:
Trump used Section 201 to place tariffs on imports of solar cells and modules, as well as residential washing machines in 2018. The solar tariffs were extended and modified by President
Section 301 of the Trade Act of 1974
What it permits:
Section 301 allows the Office of the US Trade Representative (USTR), under the direction of the president, to impose tariffs in response to other nations’ trade measures it deems discriminatory to American businesses or in violation of US rights under international trade agreements. There’s no limit on the tariff rate that can be introduced.
Limitations:
Again, this avenue doesn’t enable an instant rollout of tariffs as the USTR must first conduct an investigation. The agency is generally required to request consultation with the foreign government whose trade practices are being probed, and solicit public comments, which can result in public hearings.
The duties automatically terminate after four years unless USTR receives a request for continuation, in which case the levies can be extended.
Section 301 investigations focus on one country, but USTR can conduct parallel reviews of a common concern that relates to multiple countries. It did so during Trump’s first term, looking at the
Previous uses:
The first Trump administration used Section 301 to impose tariffs on hundreds of billions of dollars of imports from China in 2018, following an investigation into China’s policies on technology transfer, intellectual property and innovation. Biden increased Section 301 tariffs on certain products from China, including electric vehicles, during his term.
In July 2025, USTR initiated a Section 301 investigation into Brazil, looking at the country’s trade and IP policies, deforestation practices, and ethanol market access.
Section 338 of the Smoot-Hawley Tariff Act of 1930
What it permits:
The Depression-era provision empowers the president to introduce tariffs on imports from nations “whenever he shall find as a fact” that these countries impose unreasonable charges or limitations, or engage in discriminatory behavior against US commerce.
There’s no prerequisite for a federal agency to conduct an investigation before the president can apply tariffs.
Limitations:
Section 338 duties are capped at 50%.
Previous uses:
Section 338 has never been used before to impose tariffs. If Trump were to lean on this provision, such an unprecedented move may invite legal challenges. The possibility that Trump could tap Section 338 has alarmed some Democrats in the House of Representatives — five lawmakers introduced a resolution in March 2025 to repeal this section of the 1930 law.
The Reference Shelf
- Bloomberg Economics lays out
what’s at stake from the Supreme Court’s decision. - Bloomberg’s Big Take looks at how
more than 1,000 companies are suing the Trump administration over its tariffs. - The Congressional Research Service examined the authority of Congress and the president to impose import tariffs in an April report.
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To contact the editors responsible for this story:
Jeff Harrington, Lisa Beyer
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