world-economy

Trump Shifts Tariff Strategy After Court Setback, Eyes Trade Act Authority

After the Supreme Court blocked his use of emergency powers for sweeping import duties, President Donald Trump is pursuing alternative legal pathways to maintain tariff policies. The administration is leveraging Section 122 of the Trade Act of 1974 to sustain its trade agenda. Trade has become central to Trump's second-term economic policy. Negotiations have eased tensions with key trading partners: Colombia agreed to accept deportees, resolving a tariff dispute, while China signaled willingness to restore U.S. trade privileges for Hong Kong following recent diplomatic discussions between Trump and President Xi Jinping. The tariff strategy carries ripple effects across global markets, particularly pressuring export-dependent economies like Germany, which faces slowing Chinese imports alongside rising U.S. trade barriers.