world-economy

Trump Invokes Depression-Era Tariff Authority in Trade Strategy Shift

President Donald Trump is deploying Section 338 of the Tariff Act of 1930 to pursue his administration's trade objectives after the Supreme Court blocked his use of emergency powers legislation.

The provision, dormant since the Great Depression era, grants the executive authority to impose tariffs on trading partners. Trump has cited the tool in threatening 50% duties on Canadian imports.

The legal maneuver represents a strategic pivot following judicial constraints on the administration's trade enforcement apparatus. Section 338 remains among the government's available mechanisms for implementing tariff policy without requiring congressional approval.

The shift underscores ongoing tensions in U.S. trade relations and demonstrates the administration's determination to reshape commercial arrangements with key partners.