Is the 15% new tariff not enough? Trump considers imposing "national security tariffs" on six industries!

According to CCTV News, on the 23rd local time, U.S. media reported that the U.S. government is considering imposing a new round of tariffs on approximately six industries under the pretext of “national security.”

Sources said the proposed tariffs could cover industries such as large batteries, cast iron and iron fittings, plastic pipes, industrial chemicals, as well as power grid and telecommunications equipment. These new tariffs will be implemented separately from the recently announced global 15% tariff measures.

White House spokesperson Kush Desai stated in a release that maintaining U.S. national and economic security remains Trump’s top priority, and the government will “use all lawful authorities” to advance related goals. It is still unclear when the new Section 232 tariffs investigation will be announced or when the tariffs will take effect; the relevant procedures need to be promoted by the Department of Commerce.

This shift indicates that, after filling the tariff space invalidated by rulings with a 15% global tariff, Trump may still impose additional tariffs on specific supply chains through the Section 232 framework, increasing compliance and cost uncertainties for importers and downstream manufacturers.

From “Emergency Powers” to “National Security”: The Legal Pathway of Tariffs Switch

Reuters reports that last week, the U.S. Supreme Court ruled that Trump’s overreach in imposing broad tariffs under a law related to “national emergency” was invalid, overturning several measures from his second term. The report mentions that these overturned tariffs contributed to more than half of Trump’s tariff revenue during his second term.

In response, Trump initially imposed a 10% temporary tariff on imports from all countries, then raised it to 15%. The Wall Street Journal states that this 15% tariff could last for five months, after which additional tariffs are planned under another legal authority, namely Section 301 of the Trade Act.

Within this framework, the Section 232 tariffs become a more critical alternative. This provision grants the president greater discretion to impose tariffs based on “national security risks,” and is not directly affected by the recent Supreme Court ruling.

Six Industries Become the Next Targets; 232 Investigation Still Requires Time

The Wall Street Journal reports that the Trump administration is considering initiating new “national security tariffs” under Section 232 of the Trade Expansion Act of 1962 on about six industries, including large batteries, cast iron and iron fittings, plastic pipes, industrial chemicals, as well as power grid and telecommunications equipment.

Reuters indicates that these new tariffs will be independent of the recently announced 15% global tariffs by Trump.

Regarding the timeline, the report notes that Section 232 requires a relatively lengthy investigation process led by the Department of Commerce. Once implemented, the president can unilaterally adjust the tariffs, providing more operational flexibility in policy continuity and enforcement.

At the same time, the report mentions that products currently subject to Section 232 tariffs often enjoy exemptions under other tariffs imposed during Trump’s second term. If new Section 232 tariffs are implemented, affected products may be subject to a new taxation system outside the existing exemption logic.

Expansion of the 232 Tariff Map; More Industries Still “Waiting in Line”

The Wall Street Journal reports that during his second term, Trump has used Section 232 to impose tariffs on steel, aluminum, copper, as well as the automotive, truck, and auto parts industries, and these tariffs are not affected by the latest Supreme Court ruling.

The report also states that Trump has significantly expanded the scope of some Section 232 tariffs, extending from raw materials to consumer goods made using related materials, and generally offering limited exemptions to U.S. automakers.

In addition to the six proposed new industries, sources also revealed that the government team has evaluated the possibility of imposing tariffs on nine other industries under the existing Section 232 investigation framework, including semiconductors, pharmaceuticals, drones, industrial robots, and polysilicon used in solar panels.

Steel and Aluminum Tariffs May Change Taxation Approach: Nominal Rates Drop, Actual Burden May Not

Sources told the Wall Street Journal that the Trump administration is still working on reforming the existing steel and aluminum “national security tariffs.”

One approach is to reduce the nominal tariff rates on some products, but change the basis of taxation from “the value of steel or aluminum in the product” to “the total value of the product.” This means that even if the rate appears to decrease, the final amount of tariffs paid by companies could still increase.

Last week, U.S. Trade Representative Jamieson Greer told CNBC that the government might adjust the application of some tariffs for “compliance purposes,” leaving policy space for these reforms.

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