Preparations for Plan 'B' begin after the first tariff plan in America is rejected by the court

30-May-2025 08:49 PM

Washington. A US court has rejected President Donald Trump's initial plan regarding customs duties, ruling that such a decision cannot be taken solely by the President and must receive approval from Congress.

In response to this legal obstacle, the Trump administration has decided to pursue a two-pronged approach: appealing to the Supreme Court and preparing to implement Plan 'B'.

Plan 'B' includes a provision for imposing a 15 percent customs duty for a period of 150 days (five months). According to the Trade Act of 1974, a temporary tariff of this nature can be applied for five months, after which more targeted duties can be enforced under separate provisions designed to counter unfair and unequal trade practices. It is notable that a federal court has ruled to maintain the existing customs duty structure.

Earlier, the Trump administration had announced varied tariff rates for different countries but suspended them for a period of three months. As a result, the United States is currently operating under the same duty rates that were in place before Donald Trump took office.

Although the decision of the lower court has been challenged in the appellate court, the legal proceedings are expected to take time.

Since the grace period for the earlier suspension ends in July, the legal foundation for further policy decisions remains uncertain.

Therefore, officials in the Trump administration are preparing to impose an alternative tariff regime before the exemption period expires, aiming to safeguard the President's trade agenda.

Plan 'B' could be implemented in two phases. The first phase involves a 15 percent uniform tariff—a measure that has never been used before in the United States.

This could help address immediate trade imbalances and apply equally across all trading partners. In the second phase, higher tariffs may be imposed on specific countries based on targeted trade concerns.