US Tariffs Cancelled, Trump "Quietly" Prepares New Type of Levy

The administration of US President Donald Trump is moving quickly to find new sources of revenue after the Supreme Court annulled its flagship tariff policy in February. In its place, the White House is now pushing for the implementation of new, more permanent import taxes to maintain cash flow to the national treasury while strengthening its economic protectionism agenda. Previously, the government had imposed temporary tariffs. However, that policy was short-lived and will expire in less than three months, precisely on 24 July. Starting this week, the US Trade Representative’s Office is opening a series of hearings in two major investigations that could give rise to new tariffs. This step is believed to be Trump’s primary strategy to replace the old policy that failed in court. The first investigation targets around 60 countries, from Nigeria to Norway, covering 99% of US imports. The government wants to assess whether those countries have taken sufficient action to curb trade in products suspected of being produced through forced labour. “For too long, American workers and companies have been forced to compete with foreign producers who may have an artificial cost advantage from forced labour practices,” said US Trade Representative Jamieson Greer, as quoted by The Associated Press on Tuesday (28/4/2026). Meanwhile, the second investigation will target 16 major US trading partners, including China, the European Union, and Japan. The government believes those countries engage in overproduction that depresses global prices and harms US domestic industries. According to Tax Foundation analysts, the scope of this investigation represents about 70% of total US imports. The new tariff policy could once again spark legal challenges. However, the government is optimistic that this new approach is legally stronger than the previous one, which used the 1977 International Emergency Economic Powers Act (IEEPA). On 20 February, the Supreme Court ruled that Trump had exceeded his authority by using IEEPA to impose double-digit tariffs on nearly every country. That policy had previously generated revenue of up to US$166 billion, or approximately Rp2,822 trillion, before it was annulled and had to be refunded to importers. As a quick measure, Trump had utilised Section 122 of the 1974 Trade Act to impose a global 10% tariff. This provision allows tariffs of up to 15% for 150 days. Nevertheless, that policy is temporary and requires congressional approval for extension, which is seen as difficult ahead of the elections. Now, the focus has shifted to Section 301, which provides broader authority without limits on tariff sizes and has proven to withstand legal challenges during Trump’s first term, particularly in the trade dispute with China. Even so, several parties doubt this investigation process. They consider the timeline too short compared to similar processes in the past.