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Trump’s New Tariffs, Likely Illegal, Will Cost Americans $100 Billion a Year

  • July 23, 2026
  • Ed Gresser

WASHINGTON (July 23, 2026) — Today, Ed Gresser, Vice President and Director for Trade and Global Markets of the Progressive Policy Institute (PPI), released the following statement in response to the Trump administration’s announcement of “Section 301” tariffs on goods from 60 U.S. trading partners, 10% for 22 partners and 12.5% for the other 38 compared to a legal “simple average” rate of 3.5%, ostensibly related to imports of products made with forced labor:

“The experience with the Trump administration’s illegal ‘international emergency’ tariffs last year suggests that its new Section 301 tariff decree, if it survives court scrutiny, will likely cost Americans $100 billion a year. Mr. Trump and his trade officials have clearly told American families to expect higher prices for groceries, back-to-school supplies, Christmas presents and other goods this fall. And it has warned American businesses grappling with the high cost of essential goods and business inputs — farmers, manufacturers, restaurants, building contractors, retail shops, clinics and others — to expect no relief.

“The administration’s decree, however, may fail in court just as last year’s IEEPA Executive Orders did. As PPI’s testimony earlier this month explained, measured either against the Constitutional separation of powers or the statutory rules of Section 301, its vague claims about forced labor abroad do not hold up. Constitutionally, it is likely impermissible as an attempt to use a law designed for problem-solving abroad to impose a general tariff increase. And legally, Section 301 requires administrations to demonstrate ‘unreasonable acts, policies, or practices’ which impose a burden on U.S. commerce, which this Executive Order fails to do. While making emotive claims about forced labor, it neither presents evidence that the listed countries are buying goods made with the use of forced labor, nor demonstrates that if they were, this would impose the statutorily required ‘burden on U.S. commerce.’

“Thus, the Executive Order looks vulnerable to challenge, and courts would have good reason to strike it down. The courts, however, should not have to make this call. Rather, Congress should act to restore Constitutional policymaking after a year of erratic, constantly changing, and basically inappropriate administration attempts to rule by decree. Senator Ron Wyden (D-Ore.) this week introduced important legislation to terminate Mr. Trump’s tariff decrees en bloc and restore a Constitutionally appropriate, Congressionally-driven system for setting tariff rates. The appropriate next step is for House Speaker Mike Johnson, Ways and Means Committee Chairman Jason Smith, and their Senate counterparts Majority Leader John Thune and Finance Committee Chairman Mike Crapo to pass this bill and restore the Constitutional order.”

Read more about Section 301 and how the Trump Administration is trying once again to circumvent Congress to implement tariffs and skyrocket costs for Americans here.

Founded in 1989, PPI is a catalyst for policy innovation and political reform based in Washington, D.C. Its mission is to create radically pragmatic ideas for moving America beyond ideological and partisan deadlock. Find an expert and learn more about PPI by visiting progressivepolicy.org. Follow us at @ppi.

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Media Contact: Ian O’Keefe – iokeefe@ppionline.org

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