The Trump administration is reviewing new tariffs on large-scale batteries, cast iron and steel components, plastic piping, industrial chemicals, power grid equipment, and telecom equipment, the Wall Street Journal reported on June 23.
Citing sources, WSJ reported that "these tariffs would be based on Section 232 of the Trade Expansion Act." The U.S. Supreme Court ruled illegal on June 20 the reciprocal and fentanyl tariffs based on the International Emergency Economic Powers Act (IEEPA). However, President Trump can still impose product-specific tariffs for national security purposes under Section 232. This requires prior investigation by the Commerce Department, and once tariffs are imposed, the president can unilaterally adjust rates.
WSJ noted that "it remains uncertain when the Commerce Department's investigation will be announced or when tariffs will ultimately be imposed."
As the U.S. pursues Section 232-based tariffs on large-scale batteries, power grid, and telecom equipment, attention is turning to the potential impact on South Korean exports to the United States.
The Commerce Department currently imposes product-specific tariffs on automobiles, auto parts, steel, and aluminum. It is also reviewing tariffs on nine additional industries including semiconductors, pharmaceuticals, drones, industrial robots, and polysilicon used in solar panels.
Following the Supreme Court ruling against reciprocal and fentanyl tariffs, the U.S. has decided to impose 15% tariffs globally under Section 122 of the Trade Act. However, this measure is valid for only 150 days and requires congressional approval for extension. During this period, the administration plans to conduct Section 232 investigations on product-specific tariffs to generate tariff revenue. It is also considering investigating unfair trade practices by various countries under Section 301 to impose additional tariffs.