What statutory authorities is the Trump administration now using to impose tariffs after IEEPA was struck down?

After the Supreme Court invalidated IEEPA tariffs in February 2026, the administration shifted to Section 301 of the Trade Act of 1974 for country-specific reciprocal tariffs, Section 232 of the Trade Expansion Act of 1962 for national security-based duties, and Section 122 of the Trade Act of 1974 for balance-of-payments tariffs up to 15 percent. Section 301 tariffs remain in effect pending appeals at the Court of International Trade, which ruled on May 7 that Section 122 usage exceeded statutory limits.

How long will these tariffs remain in place, and what is the legal status?

Section 301 tariffs expire after four years unless the USTR extends them. Section 232 national security tariffs have no termination date. Section 122 tariffs can remain in place for 150 days unless extended by Congress. However, the legality of Section 122 usage remains under appeal following the May 7 Court of International Trade decision, though tariffs remain in effect during the appeals process.

Which countries are most affected, and are there caps on duty rates?

Most major US trading partners face country-specific Section 301 tariffs. Some economies highlighted in orange are subject to caps limiting maximum duty rates to 10 percent or 12.5 percent. China, Mexico, and Canada were among the initial targets. Section 338 allows duties up to 50 percent for countries with discriminatory trade practices against US commerce.

What options do companies have if they are subject to these tariffs?

Interested parties can file petitions to initiate Section 301 investigations through USTR, request consultations on grievances, or appear at public hearings before the Section 301 Committee. Additionally, exemptions from newly proposed Section 301 tariffs exist and are sized by 2025 import values, so companies should evaluate whether their products qualify for exclusions.

How does the multi-authority tariff structure affect supply chain planning?

The patchwork of Section 301, Section 232, and Section 122 authorities creates variable duty rates by country, sector, and legal framework. Different expiration dates (4 years for Section 301, no limit for Section 232) mean sustained uncertainty. Supply chain teams must model costs across multiple tariff regimes, diversify sourcing geographically, and build flexibility into procurement strategies since duty structures may evolve.

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The signal

The Trump administration has fundamentally restructured its tariff strategy in 2025, pivoting from the legally-challenged International Emergency Economic Powers Act approach to a complex patchwork of Section 301, Section 232, and Section 122 authorities. After the Supreme Court struck down IEEPA tariffs in February 2026, the administration moved to country-specific duties under Section 301, with reciprocal tariffs affecting most major US trading partners including China, Mexico, and Canada. This creates a multi-layered tariff regime where different countries face different duty rates, with some economies capped at 10-12.5 percent while others face higher exposure.

For supply chain professionals, this represents a structural shift rather than a temporary trade disruption. The new tariff architecture employs multiple legal authorities with different expiration frameworks: Section 301 tariffs last four years unless renewed, while Section 232 national security tariffs have no termination date. This legal fragmentation creates sustained uncertainty for procurement, pricing, and sourcing strategy.

Companies must now navigate country-specific duty rates, sector-by-sector national security designations, and evolving exemption lists that are sized by 2025 import values, adding complexity to landed cost calculations and supplier selection. The precedent-breaking nature of this tariff regime, combined with ongoing litigation at the Court of International Trade regarding Section 122 authority, means supply chain teams cannot assume current duty structures will remain static. Strategic responses require scenario planning across multiple tariff authorities, geographic diversification beyond current exposure, and enhanced customs compliance capabilities.

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Frequently Asked Questions

What This Means for Your Supply Chain

Simulation Suggestion

strategic

What if Section 301 reciprocal tariff rates increase from current levels to average 25 percent across major Asian suppliers?

Model a scenario where Section 301 tariffs on imports from key Asian suppliers (China, India, Vietnam, Taiwan) increase from current country-specific rates to an average effective rate of 25 percent ad valorem. This affects electronics, machinery, apparel, and consumer goods categories. Calculate impact on landed costs, break-even price points, and necessary margin adjustments across affected product lines.

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What if national security tariffs under Section 232 expand to include aluminum, semiconductors, and rare earth elements?

Simulate expansion of Section 232 national security tariff designations beyond current sectors to include aluminum processing, semiconductor manufacturing inputs, and rare earth element supply chains. Since Section 232 has no termination date, model this as a permanent structural change. Assess supply chain resilience, evaluate nearshoring versus acceptance of higher duties, and quantify impact on automotive, aerospace, and electronics manufacturers.

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Simulation Suggestion

strategic

What if Court of International Trade affirms that Section 122 authority is unconstitutional, eliminating universal baseline tariffs?

Model the scenario where ongoing appeals result in a final court ruling that Section 122 authority for universal baseline tariffs exceeds statutory limits. This removes the 10 percent universal rate established under Section 122, leaving only Section 301 country-specific and Section 232 sector-specific tariffs. Calculate the cost variance across sourcing regions under a purely country-specific tariff regime without the universal baseline floor.

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