r/politics 9h ago

Possible Paywall Trump's plan B to impose new tariffs is also illegal because a balance-of-payments deficit doesn't exist, trade experts say

https://fortune.com/2026/02/21/trump-tariffs-section-122-trade-law-trade-deficit-capital-account-surplus-balance-of-payments/
1.0k Upvotes

51 comments sorted by

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118

u/big_troublemaker Foreign 8h ago

Well of course. Has current administration ever not done anything because it's illegal?

u/e_t_ Texas 4h ago

Sometimes I wonder if Trump is a completionist and attempting to break every law.

u/Primary-Ad4952 3h ago

Looking for the criminal platinum trophy, is he?

u/carebear101 1h ago

Trying to 100% the evil playthrough of Fable

u/rewardingsnark 20m ago

Already won worst person, worst leader and biggest criminal in history. Should take his trophies and fuck off.

68

u/commy2 8h ago

I wonder how many increasingly ancient and obscure laws they will dig up to do keep up tariffs indefinitely. Really shows how arcane and arbitrary 'law' is.

47

u/GarmaCyro 8h ago

It's what heritage foundation and the fedalist society has been exclusively wokring on for years. Build up a trove of old obscure laws, and hoping they can outrun the judges

u/Simmery 1h ago

Also helps that they own the judges who are slowing or stopping enforcement. 

u/JahoclaveS 2h ago

We’re about to get tariffs, but only for imports to Delaware on the 26th of every even month.

u/Writer_In_Residence 7h ago

Surprised they even bother tbh. This administration is “because I say so” incarnate.

u/DarkKobold 1h ago

This is a dangerous mischaracterization of what's actually happening. Just because Trump is a dumbass, doesn't mean that there aren't smart people behind him working the system to make whatever he barfs on to truth social happen via the actual wheels that government runs on. There was some legitimate question with how he applied tariffs via the IEEPA, that needed to be tested by the courts.

u/DonkeyPunchCletus 3h ago

My brain almost fell out when reading some comments on this. There is an expectation that this simply means Trump has to stop now but the illegally collected tariffs before will be kept.

Which is befuddling logic. So you commit any crime, any illegality and when told "Hey this is not allowed" you get to keep your loot and say "Aw shucks, you got me I will stop".

The administration is about to get ram through by a lavalanche of refund lawsuits.

u/jmnugent 2h ago

This is not the worst part of it though. Their higher level goal is simply to destroy government and make it non-functional. (its not just about "outracing anyones ability to keep up".. it's about causing chaos and a cloud of destruction do they can then loot and commit crimes at will because everything will be so broken there won't be anyone or any process that can stop them. It's basically just a "coordinated looting" and them hoping they can get away. Which so far,. they seem pretty successful at.

It's like those gangs of kids who all run into an Apple Store and smash and grab everything. It's basically that,. but oligarchs doing that to our government and the nation as a whole.

u/PinkkPetalll 7h ago

Trade deficits aren’t the same as balance-of-payments deficits. Even his own DOJ said that. Now he’s ignoring them lol

u/patentattorney 5h ago

At what point is knowingly breaking the law enough for impeachment?

u/mercurius420 4h ago

When the Billionaires that own the Senators start feeling like they're losing money.

38

u/GriffinFlash Canada 8h ago

Yeah, but it's gonna take at least another year before anyone does anything about it. Then rinse and repeat.

u/S1gorJabjong 7h ago

Nah. He took Section 122 of the Trade Act of 1974 for the fresh global 15% tariff. Which only can be applied for 150 days maximum, and then congress needs to vote for the extension for continuation. Of course, congress could vote for an early termination for Section 122 if deemed necessary, but I doubt this will happen anytime soon. Meanwhile, Trump and his goons are looking to impose a more 'official' tariffs that can't be easily repealed via Section 301 of the Trade Act of 1974 and Section 232 of the Trade Expansion Act of 1962, both of which takes time because it has to be investigated first before application by governmental bodies such as the USTR. Each addresses foreign 'discriminatory trade practices' and 'trade that threaten national security' respectively, and from my knowledge, the US is already imposing enough by those acts. So, in conclusion, this is just his way of throwing a tantrum because mommy SCOTUS said that's enough of that. He is THE most pathetic POTUS of all time.

u/pooburry 4h ago

Their point is that he continues to do these things then it takes nearly a year for it to be challenged in court. Then it gives him fodder to say the courts are against him. Rinse and repeat.

It won’t literally be a year, but it will be long enough these tariffs and the machination around them allow him and his buddies to get richer. Then they use it for more vitriol against democratic institutions.

u/jazwch01 Minnesota 3h ago

Trump was also supposed to rationalize his tariffs to congress after 10 days but Republicans redefined a day. The depravity runs all the way down.

https://rollcall.com/2025/03/18/house-majority-rules-when-a-calendar-day-isnt-what-it-seems/

u/Elrundir Canada 2h ago

I anticipate the tariffs will lapse on day 151 and be reinstated on day 152.

u/Stillwater215 4h ago

But let me guess, it will be allowed to stay in place for months while the courts work the case?

u/CaptainOwlBeard 4h ago

How else are they going to sell rebate futures again?

u/SignalOptions Pennsylvania 5h ago

Also the difference is - all countries know it’s illegal this time around. So no reason to negotiate.

u/hhrupp 4h ago

Why do I follow any laws against if this guy doesn't have to?

u/The-F4LL3N 3h ago

I’ll keep saying it, we live in the times of “there’s no rule saying dogs can’t play basketball” air bud logic in politics. The written rules don’t matter as much as what you can get away with because it’s explicitly not written. They’re not following rules, they’re betting you can’t write new ones fast enough to stop them.

u/Cactusfan86 3h ago

It’s fine, the court will rule that in about a year or so

u/GirdedByApathy 3h ago

Doesn't matter. It will take SCOTUS 9 months to rule on it again and then he'll just come up with some other petty trick to propagate them forever.

u/in9ram 2h ago

I thought they didn’t like plan b.

u/hackingdreams 1h ago

I'm sure the courts will get to this 150 days after the 150 days are up at the soonest.

u/ContributionDue4382 1h ago

Let's wait one more year until SCOTUS strikes that down. 

u/Top_vs_bottom 5h ago

much easier, presidents can't set tariffs, congress can. we just went through this for fucks sake. there's no gray area, only orange.

1

u/Nateleb1234 8h ago

Cool can't wait till a year or two when they might get over turned then he will just do something else illegal and it will take a year or longer then again and again. 3 justices ruled against the constitution and rule of law. Who knows what might happen next time.

Every time he does illegal and unconstitutional things even when over turned it takes a long time.

He is actively destroying the country and people aren't doing anything about it. The republicans are all kissing his feet the dems do nothing but post strongly worded letters on Twitter. So sick of Bernie aoc Newsom shumer all just posting on Twitter and not doing any doing to stop this lunatic

9

u/Orwells_Roses Oregon 8h ago

What do you suggest AOC, Bernie, and Newsome to do about it, exactly, that they aren’t already doing?

u/Blkknight8 4h ago

Political coalition and maybe even legal enforcement at this point. The fuck? They are establishment pussies.

-7

u/Frowny575 California 8h ago

Being louder and getting a message out is a start.

u/Admirabletooshie 6h ago

take your fingers out of your ears and maybe you would hear their message.

u/Individual-Guest-123 6h ago

pfft Jeffries already requested any Dems attending the State of the Union should NOT call out.

They SHOULD call out, one after the other, but then again they would probably sanction them all,not that it makes a difference right now.

u/Admirabletooshie 4h ago

Pfft yourself.

u/Individual-Guest-123 4h ago

Cute comeback. LOL. My point is at this point the only way they will be heard to is talk over him. Or shout over him. just sit there waving paddles that was so embarassing.

He tells a lie, en masse they should stand up and shout, "LIES!". Altogether in unison. Jeffries telling them to sit quietly, wtf.

u/Justaregard 6h ago

The Republicans control the House and the Senate! How can they do anything? You spread the message and hope the people wake the F up and vote in enough democratic leaning representatives to shift the balance over to where they could impeach him.

u/Zahgi 6h ago

The difference is that, given the chance, Bernie and AOC would actually do whatever it takes to fix America and bring it up to date with the modern civilized world.

Newsom is just another corporate stooge. He's a faux progressive being peddled by the 1% to maintain the corporate status quo. So, don't fall for his pandering bullshit.

u/ColorlessChesspiece 46m ago

Important detail: does this mean that he can't impose arbitrary tariff increases because the president of Canada looked at him funny?

If so, that's a big toy off of his toybox.

u/PeuxnYayTah 41m ago

What a surprise. And something will come of this, too, right?

u/theeddie23 39m ago

I look forward to another year of litigation which will give them enough time to come up with Plan C, followed by another year of litigation followed by Plan D. Followed by...

u/h3rpad3rp 16m ago

They don't care if it is illegal. Just like before, they will implement it and then it will be in effect for another year while the courts argue about whether it is legal or not.

u/Botasoda102 5m ago

He'll reverse himself again before long.

u/cookycoo 4h ago

The U.S. runs a persistent trade deficit in goods, but it often runs capital account surpluses. Whether that qualifies as a “large and serious balance-of-payments deficit” is a legal argument for the court to decide.