Trade and Tariffs in the Trump Administration Webinar Recap

On Jan. 9, the Auto Care Association hosted the webinar “Trade and Tariffs in the Trump Administration: Policies, Impacts and Future Outlook.” Led by Patricia Paoletta and Kent Bressie, partners at HWG, the session analyzed the administration’s approach to reshaping global trade dynamics through tariffs and import restrictions aimed at addressing trade imbalances, protecting domestic industries and challenging unfair practices.

The webinar explored key trade statutes and their potential application under the incoming administration, focusing on tools such as the International Emergency Economic Powers Act (IEEPA), Section 301 and Section 232. These mechanisms address national security, unfair trade practices and broader economic challenges.

IEEPA is a key tool granting the president broad authority to act swiftly during emergencies that threaten U.S. national security, foreign policy or the economy, without requiring significant process, agency investigation or recommendation. Historically, IEEPA has been employed for economic sanctions on countries such as North Korea and Cuba. While it has not been used to impose tariffs, it was highlighted as a potential mechanism for the president to address pressing issues, such as illegal immigration and narcotics trafficking.

Section 301, a robust yet slower trade tool, was utilized during the first Trump administration to combat unfair trade practices. It resulted in tariffs ranging from 7.5% to 25%, targeting Chinese intellectual property violations and European Union subsidies. These measures were largely upheld by the Biden administration and were expanded to cover additional products, including semiconductors and critical minerals. Although Section 301 included an exclusion process, most exclusions have since expired, with a limited number set to lapse in May 2025. A domestic machinery exclusion process is currently active.

Section 232 addresses imports that threaten U.S. national security through a formal process overseen by the Bureau of Industry and Security (BIS). The first Trump administration imposed 25% tariffs on steel and 10% tariffs on aluminum, with exemptions or quotas negotiated for some countries.

The U.S.-Mexico-Canada Agreement (USMCA), which replaced NAFTA in 2020, generally prohibits new tariffs but allows exceptions tied to national security. During the first Trump administration, Mexico imposed retaliatory tariffs in response to U.S. measures under NAFTA.

The webinar underscored the complexities and evolving nature of U.S. trade policy, highlighting the balance between leveraging trade tools, maintaining agreements and addressing domestic and international priorities.

Watch the Full Webinar on the Digital Hub