A US court struck down President Trump's reciprocal tariffs. Goldman Sachs predicts the White House will circumvent this ruling by appealing and using executive powers under Section 301 or Section 122 of the 1974 Trade Act to reimpose tariffs. While a full reimposition across all targeted nations is unlikely in the short term, the administration may use Section 122 for a temporary measure, followed by Section 301 investigations against major trading partners. This allows for potentially higher tariffs, though completing investigations for all partners within months seems improbable.

Prepared by Christopher Adams and reviewed by editorial team.