Will “reciprocal tariffs” be overturned?Trump is preparing tariff “Plan B”
- Author:weiyun.com
- Source:weiyun.com
- Release Date:2025-11-25
Recently, US media revealed that the Trump administration is secretly preparing tariff "Plan B" and plans to activate Article 301, Article 122 and other legal provisions of the Trade Act to continue to impose tariffs after the Supreme Court overturns the current tariff policy.
The “reciprocal tariffs” currently implemented by the Trump administration are based on the International Emergency Economic Powers Act (IEEPA).However, it is reported that the U.S. court earlier ruled that Trump did not have the right to invoke the International Emergency Economic Powers Act to impose tariffs on many countries, and the Trump administration appealed to the U.S. Supreme Court.
At the Supreme Court hearing on November 5, three liberal justices and more than half of the conservative justices raised doubts about the legality of the current tariff policy.
The outcome of this ruling may affect the international trade pattern. If it loses the lawsuit, the Trump administration may be faced with the return of all the tariffs imposed on it over US$88 billion.
Although Trump has been optimistic in public, the news that the Trump administration is preparing "Plan B" reveals that it is already preparing for a possible defeat, and it also shows its determination to impose tariffs even if it uses untested means.
According to informed U.S. officials, the "Plan B" studied by the U.S. Department of Commerce and the Office of the U.S. Trade Representative includes the use of Sections 301 and 122 of the U.S. Trade Act of 1974. Both articles give the president the power to unilaterally impose tariffs: Section 301 authorizes the U.S. Trade Representative to initiate investigations into other countries' "unreasonable or unfair trade practices" and recommend the president to impose unilateral sanctions; Section 122 authorizes the president to impose tariffs of up to 15%, but the maximum period is only 150 days.
Although backup options exist, these two bills mean that backup bills still have limitations - they tend to be either shorter-lived or more limited in effectiveness, and may still face further legal challenges.
Regardless of the court's ruling, tariffs will remain a centerpiece of Trump's economic agenda, an administration official said.The White House declined to comment on the specifics of its preparations but admitted it was seeking "new ways" to maintain Trump's trade policies.
If "Plan B" is launched, from an economic perspective, it may trigger chain reactions such as counterattacks from trading partners, rising costs for domestic American companies, and price fluctuations;
From a political level, the Trump team emphasized that "tariffs remain the core of the economic agenda" and aims to fulfill the promise of "reshoring manufacturing", but repeated policies may exacerbate market uncertainty.
At present, the time for the Supreme Court's ruling has not yet been determined, and the result may be "uphold," "overturn," or "compromise." The Trump administration said it was "all ready." It stated last Wednesday: "We are waiting for the ruling."We hope the outcome is good, but if it's not, we'll leave no stone unturned, you know, we'll leave no stone unturned."
It is worth mentioning that the White House has recently adjusted the scope of application of "reciprocal tariffs" to exempt agricultural commodities such as coffee, bananas, and beef from additional tariffs. In recent weeks, Trump has also raised the possibility of issuing a tariff "dividend" in the form of a $2,000 check to many Americans.
Relevant actions are seen as paving the way for the U.S. government to deal with the loss of the lawsuit.
The “reciprocal tariffs” currently implemented by the Trump administration are based on the International Emergency Economic Powers Act (IEEPA).However, it is reported that the U.S. court earlier ruled that Trump did not have the right to invoke the International Emergency Economic Powers Act to impose tariffs on many countries, and the Trump administration appealed to the U.S. Supreme Court.
At the Supreme Court hearing on November 5, three liberal justices and more than half of the conservative justices raised doubts about the legality of the current tariff policy.
The outcome of this ruling may affect the international trade pattern. If it loses the lawsuit, the Trump administration may be faced with the return of all the tariffs imposed on it over US$88 billion.
Although Trump has been optimistic in public, the news that the Trump administration is preparing "Plan B" reveals that it is already preparing for a possible defeat, and it also shows its determination to impose tariffs even if it uses untested means.
According to informed U.S. officials, the "Plan B" studied by the U.S. Department of Commerce and the Office of the U.S. Trade Representative includes the use of Sections 301 and 122 of the U.S. Trade Act of 1974. Both articles give the president the power to unilaterally impose tariffs: Section 301 authorizes the U.S. Trade Representative to initiate investigations into other countries' "unreasonable or unfair trade practices" and recommend the president to impose unilateral sanctions; Section 122 authorizes the president to impose tariffs of up to 15%, but the maximum period is only 150 days.
Although backup options exist, these two bills mean that backup bills still have limitations - they tend to be either shorter-lived or more limited in effectiveness, and may still face further legal challenges.
Regardless of the court's ruling, tariffs will remain a centerpiece of Trump's economic agenda, an administration official said.The White House declined to comment on the specifics of its preparations but admitted it was seeking "new ways" to maintain Trump's trade policies.
If "Plan B" is launched, from an economic perspective, it may trigger chain reactions such as counterattacks from trading partners, rising costs for domestic American companies, and price fluctuations;
From a political level, the Trump team emphasized that "tariffs remain the core of the economic agenda" and aims to fulfill the promise of "reshoring manufacturing", but repeated policies may exacerbate market uncertainty.
At present, the time for the Supreme Court's ruling has not yet been determined, and the result may be "uphold," "overturn," or "compromise." The Trump administration said it was "all ready." It stated last Wednesday: "We are waiting for the ruling."We hope the outcome is good, but if it's not, we'll leave no stone unturned, you know, we'll leave no stone unturned."
It is worth mentioning that the White House has recently adjusted the scope of application of "reciprocal tariffs" to exempt agricultural commodities such as coffee, bananas, and beef from additional tariffs. In recent weeks, Trump has also raised the possibility of issuing a tariff "dividend" in the form of a $2,000 check to many Americans.
Relevant actions are seen as paving the way for the U.S. government to deal with the loss of the lawsuit.