Investing.com -- Donald Trump is considering a two-step approach to implementing new tariffs, exploring rarely used emergency powers to impose immediate duties while trade investigations are ongoing, according to the Financial Times.
The administration is still debating its trade strategy, which could see Trump leveraging tariffs both as a negotiating tool and a means to raise revenue for planned tax cuts, said the FT.
Trump has vowed to unveil his "reciprocal" tariff regime on April 2, an event he has labeled “liberation day”.
However, the president signaled potential exemptions for certain countries, stating, “They’ve charged us so much that I’m embarrassed to charge them what they’ve charged us, but it’ll be substantial.”
The FT reports that among the measures under consideration is the launch of Section 301 investigations into trading partners while simultaneously using rarely invoked emergency powers to apply tariffs.
These tools could include the International Emergency Economic Powers Act or Section 338 of the Tariff Act of 1930, which allows for tariffs of up to 50%.
Additionally, Trump may revive a national security study from his first term to justify immediate tariffs on vehicle imports, said the FT.
While some officials advocate a phased approach, others are said to favor an immediate and broad implementation.
The administration remains focused on finding legal pathways to impose tariffs quickly, prompting last-minute lobbying efforts by foreign governments, the FT reported.
The EU trade commissioner is set to meet top U.S. officials Tuesday, as trading partners seek concessions ahead of Trump’s final decision.