Trump may unveil two-step tariff plan on April 2 in trade policy revamp

Trump is considering using rarely invoked emergency powers to impose immediate tariffs while conducting formal investigations into trading partners, according to a report

US President Donald Trump is weighing a two-step approach to implementing his new tariff regime, potentially invoking rarely used emergency powers to impose immediate duties on imports while formal investigations into trading partners unfold, the Financial Times reported.

 

While Trump has long railed against foreign trade practices, some administration officials see tariffs not just as a negotiating tool but also as a way to bolster revenue for planned tax cuts, the report said, citing sources.

 

Officials, the FT reported, are scouring legal avenues to expedite tariff implementation, with Section 301 investigations, the International Emergency Economic Powers Act, and Section 338 of the 1930 Tariff Act among the options under review. These measures could allow the administration to slap duties of up to 50 per cent on certain imports.

 

Trump may also revive a national security probe into the auto industry, a move that could trigger tariffs on vehicle imports as soon as April 2, the report said, citing lawyers and sources familiar with the plan. Another, albeit less likely, alternative is Section 122 of the Trade Act of 1974, which permits temporary tariffs of up to 15 per cent for 150 days. The administration has yet to finalise its approach, with the scope and purpose of the tariffs still under discussion.

 

Soon after taking office, Trump vowed to unveil new tariffs on April 2, branding the date “liberation day”. The pledge set off a wave of diplomatic efforts, with foreign governments lobbying senior US officials for exemptions. He initially imposed a blanket 25 per cent tariff on steel and aluminium imports, extending duties to a range of products made with the metals. He later announced tariffs on allies, including Mexico and Canada, only to reverse course following intense pressure from businesses.

 

On Monday, Trump reaffirmed his intent to impose “substantial” tariffs on trading partners, though he signalled that some nations might secure exemptions. “They have charged us so much that I am embarrassed to charge them what they have charged us, but it will be substantial,” he said.

 

Hours later, he unveiled a new 25 per cent tariff targeting countries purchasing oil and gas from Venezuela, including India and China. “Venezuela has been very hostile to the United States and the freedoms we espouse,” Trump wrote on Truth Social. “Any country that buys oil and/or gas from Venezuela will be forced to pay a tariff of 25 per cent on any trade they do with our country.”

 

A presidential order signed Monday stipulates that the tariff will take effect as early as April 2 and will apply broadly to both direct and indirect buyers of Venezuelan crude.

Preparing for tariff blitz

  1.             Trump officials are exploring legal options to fast-track tariff implementation, according to the FT Key avenues under review:  --             Section 301 investigations  --             International Emergency Economic Powers Act  --             Section 338 of the 1930 Tariff Act  •  These measures could enable tariffs of up to 50% on certain imports  2.             Trump may revive national security probe into auto industry  •              This could lead to tariffs on vehicle imports as early as April 2  •              Another option, though less likely, is Section 122 of the Trade Act of 1974, which allows:  --             Temporary tariffs of up to 15%  --             A maximum duration of 150 days