April 2, 2025, 4:50 a.m.

Business

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Trump's tariff action is full of chaos The US trade representative is trying to inject a new order

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After previous announcements roiled markets and stoked uncertainty, U.S. President Donald Trump's top trade negotiator is trying to inject order into sweeping new tariffs expected next month.

The past two months have been fraught with confusion over tariff news, including capricious implementation dates, confusion over policy and Trump's repeated threats followed by swift reversals. During that time, U.S. Trade Representative Jamieson Greer has remained largely out of the public eye. His appointment was not confirmed until late February, with White House adviser Peter Navarro and Commerce Secretary Howard Lutnikti filling his vacant role of communications.

Greer, a level-headed and legal-minded deputy to Trump's first-term trade adviser Robert Lighthizer, is trying to get a handle on a set of new tariffs scheduled to be unveiled on April 2, Bloomberg said, citing people familiar with the matter who requested anonymity because of ongoing discussions.

Trump has billed the day as "the big day" when his administration will announce import tariffs on countries' goods based on tariffs and other restrictions imposed by trading partners on U.S. goods. In addition, the administration plans to impose tariffs on the automotive, semiconductor and pharmaceutical industries. It is not clear how soon the tariffs will take effect after they are announced.

Trump on Sunday night reiterated his desire to launch a new round of tariffs on April 2, telling reporters it would be "a day of liberation for our country." He also said that in some cases, reciprocal tariffs and sectoral tariffs would be imposed simultaneously.

Under Greer's leadership, the USTR has resumed part of its traditional policy process of asking the public for comment on reciprocal tariffs. That process was missing in previous U.S. tariffs on Canadian, Mexican and Chinese goods, as well as on metals. This provides the Office of the Trade Representative with a formal channel to receive feedback from businesses and other stakeholders.

According to people familiar with the matter, Greer intends to consider these demands when formulating the tariff plan.

The confusion surrounding previous tariff measures caused political damage to the White House and left some tariffs open to legal challenges. According to an NBC News poll released Sunday, about 54 percent of registered voters disapprove of Trump's handling of the economy.

Trade lawyers argue that it is risky for Trump to use the International Emergency Economic Powers Act (IEEPA) to support tariffs on North America and China - which Trump has linked to immigration and drug trafficking - and as the legal basis for reciprocal tariffs. If he does, the administration could face lawsuits over those tariff policies because they don't exactly match the law's description of a national emergency. Trump has said reciprocal tariffs are aimed at rebalancing U.S. trade deficits with other countries.

The Trump team is aware of these dynamics and has been assessing the risks and benefits as it develops a strategy for the April 2 move, according to people familiar with the matter.

A key advantage is that using IEEPA is the fastest way to impose tariffs without the involvement of industry or Congress. One person familiar with the matter said Trump could use the law to speed up the implementation of tariffs.

According to people familiar with the matter, Trump attended a meeting last Friday to discuss options for the tariff plan.

The White House did not immediately respond to a request for comment. A spokesman for the office of the United States Trade Representative declined to comment.

Tariff negotiation

Discussions about what measures Trump and his team will announce early next month are still ongoing, and a final decision has yet to be made. Setting tariffs on hundreds of countries to match the tariffs and other trade barriers they impose on US exports, including wage levels and tax regimes, is a complex task without precedent in modern US history. Lutnick said on Bloomberg Television earlier this month that some tariffs could be announced immediately, while others could be announced weeks or months later.

One possible outcome, the people said, is for the USTR to develop a single tariff formula based on each country's average tariff level and other measures that Trump's team deems discriminatory. However, one of the people said the tariffs could be adjusted based on Trump's view of whether a country is cooperative or combative.

It's also possible that some tariffs won't take effect in early April, pending investigations by the U.S. Trade Representative's office or the Commerce Department that could last months, the people said.

These discussions are fraught with uncertainty, and the strategy could change in the coming weeks. Some officials and outside advisers see April 2 as the deadline to recalibrate trade policy, thereby refocusing the Trump team's energies on bigger challenges like China.

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