Tariffs are taxes imposed on imported goods and have once again become a central instrument of U.S. trade policy. They are paid by importers and serve multiple purposes, from protecting domestic industries to influencing foreign policy and securing strategic advantages.

Although the U.S. Constitution grants Congress the sole authority to levy taxes, including tariffs, Congress has, over time, delegated significant trade powers to the executive branch. Through statutes such as the Trade Expansion Act of 1962 (Section 232) and the Trade Act of 1974 (Sections 122 and 301), the President may impose tariffs or other trade restrictions unilaterally in specific circumstances, such as when imports threaten national security, when foreign countries engage in unfair trade practices, or when the United States faces serious balance-of-payments deficits.

For Swedish and other European companies, these developments are relevant because they can directly or indirectly affect export competitiveness, supply-chain costs, and cross-border operations. Tariffs applied under U.S. law can, for example, extend beyond their immediate targets by influencing global trade flows, input prices for U.S. manufacturers, and regulatory risk for European exporters and service providers.

On February 20, The U.S. Supreme Court issued a 6-3 ruling vacating all tariffs imposed under the International Emergency Economic Powers Act (IEEPA), finding that Congress had not expressly granted the Executive Branch authority to impose broad tariffs under that statute. This includes tariffs labeled as “baseline” (around 10% in most countries), and those higher than the 10%.

The administration has since pivoted to alternative legal authorities to maintain trade pressure, including a temporary 15% surcharge under Section 122 of the Trade Act of 1974. Simultaneously, the administration has signaled that new, accelerated Section 301 investigations—focused on a global scope rather than specific countries—will form the core of a more durable long-term tariff regime. 

For a Swedish perspective on U.S. tariff scenarios and their broader economic effects, the Swedish National Board of Trade (Kommerskollegium) has published an analysis.  Read the full report here.

See more below for information about the most relevant U.S. trade statutes currently shaping tariff policy and their potential impact on Swedish and European companies.