Trump's Plan B Tariffs Are Coming Soon—And Will Be Hard to Kill. That Could Spell More Price Hikes.
The US government is starting hearings to rebuild President Donald Trump's tariff agenda, which was struck down by the Supreme Court in February. The new wave of tariffs could push up inflation at a time when the Iran war's energy crunch is already hurting household budgets.
The US Trade Representative will begin hearings on whether 14 countries and the European Union have created 'excess capacity' by subsidies and other government policies, authorizing the administration to impose tariffs in retaliation. The new tariffs will be imposed under Section 301 of the Trade Act of 1974, a more predictable and potentially more resilient process than the emergency powers used last year. Economists say the tariffs eased after the Supreme Court ruling removed some of the heaviest tariffs, but the overall average tariff rate paid by US importers is expected to rise again. Treasury Secretary Scott Bessent said the Section 301 process aims to push tariffs back up to their previous levels by mid-summer. The additional tariffs could put renewed upward pressure on prices for consumer products at a time when inflation is already heating up due to the Iran war.
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