Trump reignites tariff war despite legal losses, GOP jitters

▪ Trump plows forward with tariffs

▪ Johnson on a roll ahead of recess 

▪ DNC panel meets on primary calendar

▪ Cyclospora outbreak reaches new record

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The Trump administration is moving full steam ahead on imposing tariffs as an economic cudgel around the world, even after losing several legal battles that have diminished its trade toolbelt.

U.S. Trade Representative Jamieson Greer pledged during testimony before the Senate Finance Committee on Wednesday that the administration would not be deterred.

“The specific authorities this administration is using have changed, but the trade strategy has not,” Greer said in his opening remarks. “We are committed to continuing to use tariffs and to negotiate deals to support the reindustrialization of our economy, protect American workers and increase their wages and shrink our trade deficit.”

Greer’s remarks come as President Trump has stepped up his use of tariffs in recent days against Canada and Brazil, with threats to add more tariffs in the future.

The administration’s tariff policy is set to move to a new phase on Friday, as its 10 percent global tariffs will expire.

Trump signed an order in late February implementing the baseline tariff rate after the Supreme Court struck down his emergency tariffs as unconstitutional. The 10 percent tariffs were implemented under Section 122 of the Trade Act of 1974, but that only allows them to be in place for 150 days.

That leaves Trump and Greer looking for new ways to advance their vision for trade.

The Wall Street Journal reported the president’s trade team is expected to turn to the 1974 Trade Act’s Section 301, which allows the federal government to retaliate against foreign countries with unfair practices with tariffs. These are widely seen as more legally durable and will cover 99 percent of U.S. trade, according to Greer.

On Wednesday, a 25 percent tariff that Trump imposed on some Brazilian goods took effect following an investigation that the country has used unfair trade practices. The tariffs are being put in place through Section 301. Trump has also explicitly linked his tariffs against Brazil to the prosecution of former President Jair Bolsonaro, a close ally.

A larger battle has opened up between the U.S. and Canada as Trump placed an additional 50 percent tariff on certain Canadian goods on Monday over “discriminatory” trade measures.

This tariff was implemented under Section 338 of the Tariff Act of 1930, which allows the president to impose duties on foreign countries that discriminate against, burden or disadvantage U.S. commerce. An administration official said the tariffs would go into effect 30 days after Trump signed the order.

Among the products impacted are wine and cement.

The decision has heightened tensions between Trump and Canadian Prime Minister Mark Carney, who argued the tariffs constituted a “direct violation” of the U.S.-Mexico-Canada Agreement (USMCA) that Trump agreed to during his first term.

“This trade dispute has raised costs for families, particularly in the U.S.,” Carney said in a statement shared on the social platform X. “Canada stands ready to engage intensively to address outstanding issues with the U.S. to the mutual benefit of our citizens.”

In response to the tariffs, Canada canceled a planned joint ceremony marking the opening of the Gordie Howe International Bridge connecting Detroit to Windsor, Ontario. Instead, Canada will hold its own ceremony on Friday ahead of the planned opening on Monday.

“In light of trade action threatened by the United States earlier this week, it would be inappropriate to proceed with a celebratory event between the two countries,” Jenna Ghassabeh, a spokesperson for Canadian Infrastructure Minister Gregor Robertson, told The Associated Press.

The Trump administration declined to renew the USMCA in its current form earlier this month after past rounds of negotiations failed to reach a new deal. The agreement itself won’t expire until 2036 if the countries don’t agree to renew it for another 16-year term, but the decision does put the agreement’s future in doubt.

Greer had said at the time that the U.S. would meet with Mexico this week for a third round of negotiations.

Carney told reporters on Tuesday that he spoke with Trump earlier that morning and the two agreed to “intensify” negotiations in the coming weeks.

Trump warned on Tuesday that imported generic drugs will face a 100 percent tariff starting in August 2028 unless manufacturers move production to the U.S.

The unpopularity of Trump’s tariffs has also not been a deterrent to Trump continuing on with his policy. A YouGov poll released Wednesday found more than 70 percent of U.S. adults believe the tariffs have increased prices.

Even congressional Republicans are cautious about backing Trump’s new Canada tariffs, worrying it could bring the cost of living up at a politically perilous time, The Hill’s Helen Huiskes........

© The Hill