Trump Response 2-23-26

Following a February 2026 Supreme Court ruling limiting his use of the International Emergency Economic Powers Act (IEEPA), President Trump is implementing a "Plan B" centered on imposing a 10% universal baseline tariff on most imports using Section 122 of the Trade Act of 1974. This temporary, 150-day measure aims to address balance-of-payments issues, while his administration simultaneously initiates longer-term investigations under Section 301 for unfair trade practices.  

Michael Best & Friedrich LLP +5

Key Components of Trump's "Plan B" (as of Feb 21, 2026):

Section 122 of the Trade Act of 1974: This allows the President to impose up to 15% tariffs for 150 days to address "fundamental international payment problems" or major trade deficits.

10% Universal Tariff: An executive order will enforce a 10% duty on most imports, supplementing existing tariffs.

Section 301 Investigations: Long-term, permanent tariffs are expected to be established through new investigations into foreign trade practices, similar to actions taken in his first term.

Expansion of Section 232: The administration plans to broaden the definition of national security to cover more products under existing 232 authorities.

Section 338 of the Tariff Act of 1930: This rarely-used,, 96-year-old provision is being considered for penalties up to 50% on countries discriminating against U.S. commerce. 

Michael Best & Friedrich LLP +5

These actions are designed to keep significant import taxes in place while navigating the new legal restrictions on IEEPA, say Axios and Investor's Business Daily. 

Following the February 20, 2026, Supreme Court ruling that struck down President Trump’s use of the International Emergency Economic Powers Act (IEEPA) for tariffs, the administration immediately transitioned to a "Plan B" centered on alternative legal authorities. 

Eversheds Sutherland +1

Trump's "Plan B" consists of the following key measures:

Global 10% Tariff: Trump signed an executive order late on February 20 to impose an across-the-board 10% global tariff under Section 122 of the Trade Act of 1974. This authority allows for tariffs of up to 15% to address balance-of-payment deficits, but is strictly limited to 150 days unless extended by Congress.

New Section 301 Investigations: The administration is launching new investigations under Section 301 of the Trade Act of 1974 to address "unfair trade practices". These allow for more permanent duties but require a lengthy procedural process, including public hearings and investigations that typically take 9 months to complete.

Expansion of Section 232 Tariffs: Trump confirmed that sector-specific "national security" tariffs—such as those on steel, aluminum, copper, and semiconductors—remain in full effect. He has indicated he may expand these to cover more products or increase rates.

Potential Use of Section 338: The administration is considering invoking Section 338 of the Tariff Act of 1930 (a "Depression-era" law). This would allow for tariffs of up to 50% on countries found to discriminate against U.S. commerce, with no automatic expiration date. 

Investopedia +9

Key Exemptions and Constraints:

Exemptions: The new 10% global tariff reportedly exempts Canadian and Mexican goods that comply with the USMCA, as well as specific items like critical minerals, pharmaceuticals, and certain energy products.

Refund Uncertainty: While the Supreme Court ruling invalidated billions in previously collected IEEPA tariffs, Trump has cast doubt on immediate refunds, suggesting the issue will be litigated for years.

Procedural Hurdles: Unlike the "Plan A" IEEPA tariffs, these alternative "Plan B" authorities are more narrow, often time-limited, and require specific administrative findings or investigations before they can be fully implemented. 

Eversheds Sutherland +5

https://www.google.com/search?q=what+is+trump%27s+plan+b+for+tariffs

Norb Leahy, Dunwoody GA Tea Party Leader