As April 2nd approaches – the day President Donald Trump is set to roll out a global tariff regime, the Financial Times reports that Trump is now considering ‘a two-step approach,’ which would split tariffs into two stages; targeted emergency tariffs now to raise money for planned tax cuts, and more after his administration has completed probes into trading partners to provide a more robust legal framework to deploy “reciprocal” tariffs (we charge them the same percentage they’re charging us).
Basically while Trump and Lutnick want to go full bore now, US trade representative Jamieson Greer (a lawyer who worked for Trump’s first trade chief Robert Lighthizer), insisted they pump the brakes in order to legally justify sweeping tariffs.
The dual-track strategy is poised for a high-profile unveiling on April 2, a date Trump has branded “Liberation Day,” spurring a flurry of diplomatic activity as allies seek exemptions.
Among proposals his team has been discussing is a plan to launch so-called Section 301 investigations into trading partners, while simultaneously using rarely invoked emergency powers to apply immediate tariffs in the interim. -FT
Speaking Monday, Trump vowed “substantial” tariffs on U.S. trading partners, though he also suggested the possibility of selective leniency. “They’ve charged us so much that I’m embarrassed to charge them what they’ve charged us,” Trump said – hours after announcing new tariffs on buyers of Venezuelan oil, including China. “But it’ll be substantial.”
According to the Financial Times, officials close to the matter say the administration is eyeing an immediate deployment of tariffs using emergency authorities such as the International Emergency Economic Powers Act (IEEPA), or Section 338 of the Tariff Act of 1930 – a provision that permits duties of up to 50% on foreign goods on trading partners.
One more obscure route, now considered a long shot, involves Section 122 of the 1974 Act, which permits temporary tariffs of up to 15% for 150 days – a stopgap measure that may not deliver the revenue or optics the former president is seeking.
Lawyers and people familiar with the plans also told FT that Trump could immediately slap tariffs on vehicle imports on April 2, reviving a national security study into the global auto industry from his first term.
On Monday, Trump said tariffs on cars could be announced “over the next few days.”
The debate within the Trump team has at times split along functional lines.
The two main points of contact have also differed in their approaches, say people familiar with the discussions. While commerce secretary Howard Lutnick has served as the administration’s chief negotiator, he has lambasted trading partners over their trade surpluses and tax policies, before demanding “a deal”.
US trade representative Jamieson Greer, a lawyer who previously worked for Trump’s first-term trade chief Bob Lighthizer, has increasingly asserted himself as the legal planner, seeking to create a durable blueprint for the president’s drive to reorder global trade. -FT
Greer has notably advocated for launching investigations into trading partners before applying tariffs, according to people familiar with his thinking. This would rely on tested trade law, but could delay tariffs by up to six months.
White House spokesperson Kush Desai said the final details of the reciprocal tariff plan remain under wraps, but emphasized internal alignment on the broader goal: “Although the final reciprocal tariff plan for April 2 has yet to be unveiled by President Trump, every member of the Trump administration is aligned on finally leveling the playing field for American industries and workers.”
Foreign governments are responding with urgency. The U.K. is weighing revisions to its digital services tax targeting U.S. tech firms, while the European Union has dispatched Trade Commissioner Maroš Šefčovič for emergency talks with Lutnick and Greer.
Any plan unveiled on April 2 is expected to be a refinement of Trump’s original campaign promise to apply universal tariffs to all U.S. imports – a proposal that has morphed over time but remains rooted in economic nationalism.
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Tyler Durden
Tue, 03/25/2025 – 15:26
