The Trump administration is exploring a temporary tariff strategy under the Trade Act of 1974, allowing 15% tariffs for 150 days, according to a Wall Street Journal report. This move comes after a federal trade court ruled that Trump overstepped his authority in imposing previous tariffs.

As a “Plan B,” officials may invoke the rarely used provision to counter trade imbalances while crafting targeted tariffs under different legal frameworks. White House press secretary Karoline Leavitt confirmed that alternative options are under review as they appeal the ruling.

Peter Navarro hinted at using the Smoot-Hawley Tariff Act of 1930 to penalize countries discriminating against American goods. Despite the setback, a federal appeals court temporarily reinstated key tariffs, citing national security.

The administration may expand tariff powers using broader security justifications, triggering concern among global trade partners about escalating tensions.