Episode Details

The U.S. Treasury lost a major revenue stream after the Supreme Court struck down its biggest tariffs, forcing a fast-moving pivot to Section 301 trade sanctions before a July deadline. With midterm elections looming and inflation biting, lawmakers are reluctant to extend emergency tariffs—but the administration’s legal playbook includes targeted sanctions on unfair trade practices, like those recently imposed on Brazil. Trade lawyers say the switch is likely, though new investigations into forced labor and overproduction carry legal and economic risks. The Treasury, once flush with tariff cash, now faces a shortfall and must act quickly to avoid a fiscal stumble.

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