Alternative Legal Paths for Tariffs
Trade attorneys say the administration could rely on another mechanism if IEEPA authority is limited. One option is Section 232 of the Trade Expansion Act of 1962. Under this provision, the president can impose tariffs on imports deemed a threat to national security. Attorneys pointed to a recently completed Section 232 investigation into critical minerals as a potential basis for new tariffs. Greenland is known to be rich in minerals that are considered strategically important.
In a Jan. 14 proclamation, Trump invoked Section 232 authority to direct negotiations with foreign nations to “ensure the United States has adequate critical mineral supplies and to mitigate the supply chain vulnerabilities as quickly as possible.” The proclamation further states that if negotiations fail, “it may be appropriate to impose import restrictions, such as tariffs, if satisfactory agreements are not reached in a timely manner.”
While some past Section 232 actions under Trump resulted in immediate tariffs, the latest policy language on critical minerals emphasizes that the executive branch reserves the president’s right to impose tariffs rather than mandating them automatically.
“Regardless of the IEEPA outcome, Section 232 remains a powerful and unaffected tool that the administration will likely continue to deploy for additional tariffs. Importantly, we note that these tariffs do not stack on top of IEEPA tariffs,” analysts at TD Cowen wrote in a recent note to clients.
Supreme Court Decision and Greenland Tariff Uncertainty
As the Supreme Court considers the scope of presidential tariff authority, Trump’s proposed tariffs linked to Greenland remain uncertain. The court’s ruling on IEEPA is expected to clarify whether such actions can proceed under emergency powers or whether the administration will need to rely on alternative trade laws to pursue its objectives.
