Trump Tariff Strategy: When and How Duties Can Be Imposed
After the Supreme Court’s February 2026 ruling striking down IEEPA tariffs, the Trump administration pivoted to a different set of statutory authorities — some active right now, others held in reserve. This is the importer’s field guide to the legal tools that shape today’s tariff landscape and what may come next.
The second Trump administration has produced the largest tariff realignment in modern U.S. history. Tariffs have been imposed, invalidated by the Supreme Court, and re-imposed under different legal authorities — all within a twelve-month period. For importers, the practical question is no longer whether tariffs will affect their business but which statutory authority is being used, how durable it is, and what compliance and recovery options exist. Planning for reduced or “temporary” tariffs is a losing strategy. Planning for sustained, multi-layered tariffs — some refundable, most not — is where importers need to be.
When Will New Tariffs Be Imposed?
The Trump administration has repeatedly demonstrated that tariffs are used as a negotiating tool — imposed, adjusted, and sometimes rescinded on short timelines based on trade-agreement progress with specific countries. Predicting exact timing is impossible; only the administration knows when new tariffs will be announced, at what rates, and against which countries.
The pattern from 2025–2026 is instructive. Some tariffs were proposed and implemented within days. Others were proposed at one rate and implemented at a different rate. Still others were threatened but never imposed after bilateral talks produced a framework agreement. Importers cannot count on advance warning, and published announcements have frequently been modified within hours or days of their initial publication.
Treat tariff increases as the baseline expectation, not the exception. Price, contract, and supply-chain decisions should assume sustained tariff exposure — with the understanding that rates and scope can change materially with little notice.
What Tariffs Are in Effect Right Now?
As of April 2026, the tariff landscape looks very different from what was in place during most of 2025. The Supreme Court’s February 2026 ruling invalidated the IEEPA-based Trafficking and Reciprocal tariffs, and the administration pivoted to a combination of Section 122 and Section 232 authorities. Importers of IEEPA-dutied entries may now recover those duties through CBP’s CAPE refund process.
Section 122 10% global import surcharge (through July 24, 2026) · Section 232 duties on steel and aluminum (50%), autos and parts (25%), copper (50%), lumber, and certain semiconductors · Section 301 tariffs on Chinese goods (various rates and HTS codes, in force since 2018). None of these are refundable through CAPE.
How Tariffs Can Be Imposed: The Eight Statutory Authorities
Beyond new legislation (which requires Congressional action), the President has broad authority under eight existing statutes to impose, increase, or modify tariffs. Understanding which authority underpins any given tariff action matters — because the authority determines the durability of the tariff, the availability of exclusions, and whether any refund path exists if the tariff is later invalidated.
Section 301 of the Trade Act of 1974
Section 301 is the source of the long-running tariff regime on Chinese imports. Under this authority, the U.S. Trade Representative (USTR) can act to eliminate unreasonable or discriminatory acts, policies, or practices of foreign countries that burden or restrict U.S. commerce. Actions include imposing duties or creating other import restrictions. The President has broad authority to modify existing Section 301 actions, including raising duty rates or expanding the scope of covered goods. USTR launched accelerated Section 301 investigations on multiple trading partners in March 2026 in response to the IEEPA ruling.
Section 232 of the Trade Expansion Act of 1962
Section 232 is the authority behind the steel, aluminum, auto, copper, lumber, and semiconductor tariffs currently in force. Under this statute, the Secretary of Commerce can begin an investigation to assess the impact of imported articles on national security. Following a formal determination, the President can negotiate a trade agreement to limit imports or impose tariffs. Section 232 tariffs were not affected by the Supreme Court’s IEEPA ruling and remain fully in force. Multiple additional Section 232 investigations are ongoing.
Section 122 of the Trade Act of 1974
Section 122 allows the President to impose, without investigation, increased tariffs of up to 15% for a period not exceeding 150 days (and longer, with Congressional approval) to address “large and serious” trade deficits. The administration invoked Section 122 on February 24, 2026 for a 10% global import surcharge — the first-ever presidential use of Section 122. The surcharge expires approximately July 24, 2026 unless Congress affirmatively extends the measure by joint resolution.
Section 201 of the Trade Act of 1974
Under Section 201, the U.S. International Trade Commission (USITC) can determine that an article is being imported into the U.S. in such increased quantities that it may harm a domestic industry producing a similar article. If the USITC makes an affirmative determination, the President may impose safeguard measures including tariff increases, quotas, or tariff-rate quotas. Section 201 has been invoked sparingly in recent years but remains available.
Section 125 of the Trade Act of 1974
Section 125 gives the President retaliatory powers — authority to impose additional duties if a benefit to the U.S. provided under an existing trade agreement is modified or withdrawn. This authority is typically invoked when another party to a trade agreement (the EU, Canada, Mexico, or another treaty partner) takes an action that the U.S. considers a modification or withdrawal of trade concessions.
Section 338 of the Tariff Act of 1930
Section 338 allows the President to impose new or additional duties on imported foreign articles if a country imposes any unreasonable charge, exaction, regulation, or limitation on U.S. goods that is not equally enforced on similar articles from other foreign countries. This authority also applies if a country discriminates against U.S. commerce in a way that places it at a disadvantage compared to the commerce of any other foreign country. Section 338 has been dormant for decades but remains on the books.
International Emergency Economic Powers Act of 1977 (IEEPA)
IEEPA gives the President authority to regulate the importation or exportation of any property under U.S. jurisdiction during declared national emergencies. The Trump administration invoked IEEPA in 2025 to impose both the Trafficking tariffs on Canada, Mexico, and China and the globally-imposed Reciprocal tariffs. On February 20, 2026, the Supreme Court ruled 6–3 in Learning Resources, Inc. v. Trump that IEEPA does not authorize the President to impose tariffs. IEEPA remains available for its traditional uses — sanctions, asset freezes, export controls — but can no longer be used as a tariff authority. Duties collected under IEEPA prior to the ruling are refundable through CBP’s CAPE process.
Section 404 of the Trade Act of 1974
Section 404 gives the President authority to suspend or withdraw any extension of nondiscriminatory treatment to any country at any time, resulting in all products from that country being subject to increased “Column 2” duty rates. Column 2 rates are present in the HTSUS and currently apply only to countries with which the United States does not have normal trade relations — a very short list including North Korea and Cuba. Withdrawal of normal-trade-relations status for a significant trading partner would represent a dramatic and substantive tariff escalation.
Four Phases, Three Statutes, One Supreme Court Ruling
Our timeline report traces the complete arc of Trump 2.0 tariff policy from February 2025 through April 2026 — every executive order, every trade agreement, the Supreme Court ruling, and the pivot to Section 122 and Section 301. If you need the full chronological picture, this is where to start.
Read the Full Timeline ReportHow Can Tariffs Be Avoided or Reduced?
Tariffs are difficult to avoid entirely, but several strategies can reduce their impact. None of these are shortcuts — they require careful compliance work and, for most importers, professional customs counsel. The following are the categories we most frequently work on with clients.
Budget for Tariff Exposure
- Price products so new duties can be absorbed without pushing the business into insolvency
- Ensure purchase and supply contracts provide flexibility in the event of rate increases — or include an escape clause for substantial tariff changes
- Model supply chain costs under multiple tariff scenarios rather than a single baseline
Ensure Correct and Favorable Valuation
- Deduct freight, insurance, and finance charges where permitted under CBP valuation rules
- Utilize the “first sale” doctrine when applicable and documented
- Take advantage of deductions for certain commissions and other allowable adjustments under 19 USC 1401a
Ensure Correct Classification
- Verify HTS classification — when tariffs target specific HTS codes, classification matters enormously
- Consider a CBP binding ruling to lock in classification on high-volume products
- Review whether products may qualify for preferential treatment under USMCA, GSP, or Chapter 98 provisions
Use Duty Reduction Programs
- Foreign Trade Zones (FTZs) to defer or eliminate duties on goods that are re-exported or further processed
- Bonded warehouses for deferred-duty storage
- Drawback to recover duties on goods that are later exported
- Temporary Importation under Bond (TIB) for goods imported for repair, alteration, or short-term use
If You Paid IEEPA Duties in 2025 or Early 2026
Importers who paid duties under the IEEPA Trafficking or Reciprocal tariff programs may be entitled to refund through CBP’s Consolidated Administration and Processing of Entries (CAPE) system. Phase 1 of CAPE launched April 20, 2026 and is limited to unliquidated entries and entries within 80 days of liquidation. Later phases are expected to cover additional entry categories.
Read our complete IEEPA refund guide for the full eligibility rules, filing procedure, and strategic considerations for importers whose entries fall outside Phase 1.
Planning for Tariff Exposure?
Great Lakes Customs Law was established in 2010 as a law firm for importers. Over 15 years, we have helped hundreds of clients avoid, reduce, and recover tariff exposure. Whether you are preparing for future tariff increases, pursuing an IEEPA refund, or navigating Section 232 exclusions, we can help.