Presidential Powers and Tariffs: A Breakdown of Key Deals

Under his U.S. First Trade Policy, President Trump made it clear that his administration intends to use every tool available to address unfair trade practices that affect U.S. companies, workers, and national security.

In the first two months of this administration, President Trump has issued dozens of executive orders affecting international trade, many of whom impose or threaten new tariffs. Do the president have to impose new tariffs? There are many laws that explicitly give the president the power to address various national concerns by imposing tariffs.

1. International Emergency Economic Major Countries Law (IEPA)

The IEPA, promulgated in 1977, granted the President the authorization of international trade in a national emergency, declared any unusual and extraordinary threat to the United States from abroad.

The law grants the president extensive power to control economic transactions, although the transaction does not specifically mention tariffs. President Trump in 2025 cites Ieepa’s more tariffs on Canadian, Mexico and China imports, citing national security issues related to illegal immigration and drug trafficking. Before this, no president used the IEEPA to impose tariffs.

2. Article 301 of the Trade Act of 1974

Sections 301-310 of the Trade Act of 1974, commonly known as “Section 301”, grants the U.S. Trade Representative the power to act against foreign countries that violate U.S. trade agreements or engage in “unreasonable” or “unreasonable” or “unreasonable” or “unreasonable” and bear U.S. commerce.

USTR is authorized to conduct Article 301 investigation based on a petition filed by an interested person. USTR can also self-implement the Section 301 survey. If the USTR makes a positive decision in the investigation, the agency will authorize tariffs under the guidance of the president, withdraw or suspend trade agreement concessions, or sign new agreements with foreign governments to stop the conduct.

Historically, Article 301 has been often used to force other countries to remove trade barriers. The latest 301 surveys include China’s forced technology transfer policies and practices; China’s targeting the semiconductor industry; and Nicaragua’s labor rights, human rights and the rule of law.

3. Article 232 of the Trade Expansion Act of 1962

Article 232 of the Trade Expansion Act of 1962 authorizes the President to adjust the import of goods found by the Minister of Commerce to import in a manner that threatens national security. The first Trump administration uses Article 232 to impose tariffs on imports of steel (25%) and aluminum (10%) in most countries. In February 2025, the Trump administration revised these Section 232 lawsuits to impose a 25% tariff on steel and aluminum.

Article 232 requires the Secretary of Commerce to conduct an investigation to determine the impact of national security regarding imports after a petition of the “interested party” or request from a U.S. department or agency. Business may also automatically investigate Section 232.

In order for the President to take action under Article 232, the Secretary of Commerce must make a positive finding in the investigation that the goods were imported into the United States in a way that threatened to undermine national security. Article 232 does not require the President to follow the recommendations made by the business after the investigation.

4. Article 122 of the Trade Act of 1974

Section 122 of the Trade Act of 1974 grants the President the authority to grant temporary tariffs to resolve “large and severe U.S. payment deficits” or other situations that present “basic international payment issues.” This section limits any tariffs imposed to 15% and 150 days.

So far, the U.S. president has never used Article 122.

5. Article 201, Article 201, 1974 Trade Act

Section 201 of the Trade Act of 1974 authorizes the President to impose tariffs if the International Trade Commission (ITC) finds that the surge in import bureaus is causing serious harm or threatening serious harm to domestic industries in the United States.

The ITC must conduct 201 investigations after a resolution of the interested party, USTR, presidential request or Senate Finance Committee or House Methods and Means Committee. ITC also has the right to automatically investigate.

The ITC usually must submit reports to the president within 180 days of initiating the investigation, including the findings and ITC’s recommendations. The president then has to take action within 60 days to resolve the harm.

The tariffs stipulated in Article 201 are not meant to be permanent. The regulation requires the gradual phase-out of actions over one year at “regular intervals.” In order to keep the action under 201 for more than four years, the ITC must make new findings in subsequent procedures. In addition, when taking action, the tariffs for 201 years of age less than 201 may not exceed 50% of the value.

6. Article 338 of the Tariff Act of 1930

Section 338 of the Tariff Act of 1930 grants the President other duties to imports of countries that discriminate against U.S. business. Article 338 directs the President to impose tariffs when he is abroad: 1) unreasonable allegations or regulations imposed on U.S. products; (2) “passing or in connection with any custom, tonnage or port tax, expenses, expenses, exactions, classifications, regulations, conditions, restrictions, or prohibitions” on the shortcomings and distinctions of U.S. business. “Terms levied under Article 338 shall not exceed 50% of the value of the goods

The U.S. president never imposes tariffs under Article 338. But President Trump may face the state and additional additional fines, fines and fines in the February 21 memorandum, or his February 13 memorandum defending U.S. companies and innovators in the February 13 memorial to the opposite trade and votes, invoking 338 new tariffs.

Stay proactive in an uncertain trade policy environment

While these increased tariffs and changing trade policies will undoubtedly have a significant impact on any business that imports goods into the United States, importers are not without options.

Now is the time for importers to review their operations and compliance plans and ensure they operate in the most efficient way. There are several legal ways to minimize tariffs, including:

• Disadvantages of duty
• Tariff project
• Country of origin changes
• First sale
• Duty delay
• Negotiate DDP Incoterm

Importers exploring options to minimize tariff liability should always work with experts to ensure they continue to comply with all U.S. customs regulations. Tax evasion is a serious crime that can lead to serious monetary fines and may even lead to imprisonment in the case of fraud.

In the Diaz Trade Act, we have a good record in tariff minimization and customs compliance. To learn more about how we can help, please contact us at info@diaztradelaw.com or call us at 305-456-3830.

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