Trump Pivots to Section 122 for 15% 'Bridge Tax' Following Supreme Court Ruling

Following the US Supreme Court's decision to curb executive tariff powers, President Trump has signaled a pivot toward using Section 122 of the Trade Act of 1974 to impose new import taxes. The proposed alternative plan introduces a 15% 'bridge tax' on imports, aimed at circumventing the legal hurdles created by the court's ruling against the broad use of the IEEPA. The judicial blow initially sent gold prices surging by 2.4% as investors reacted to the uncertainty surrounding the administration's trade authority. By identifying Section 122 as a specific legal mechanism, the administration seeks to maintain its protectionist agenda despite the landmark 6–3 court decision. Market participants are now closely evaluating the viability of this 'Plan B' and its potential impact on global trade dynamics and the US Dollar (DXY). Analysts suggest that while the legal landscape has shifted, the administration's persistence in pursuing tariffs continues to drive volatility in safe-haven assets.