ING Issues Critical Warning on Trump's Tariffs: "Temporary Authority Could Become Permanent"

New Wave of Uncertainty in Global Markets In an analysis published by ING economists Carsten Brzeski and James Knightley, it was stated that the U.S.
administration's recent tariff moves have created a significant wave of uncertainty in global markets.
The report highlighted the invocation of Section 122 of the Trade Act of 1974, which grants the administration the authority to impose tariffs of up to 15% for a period of 150 days.
Risk of Permanent Tariffs and Process Management Economists pointed out that, theoretically, once the 150-day period for the tariffs expires, the process could be restarted with a new emergency declaration.
This situation could lead to an authority initially designed as temporary effectively turning into a permanent trade barrier.
Such uncertainty is expected to put pressure on investor confidence and global trade flows.
Legal Processes and Strategic Moves The analysis noted that while these tariffs may face legal challenges, the move might be intended to buy time for other options, such as Section 301 of the 1974 Act, which requires more comprehensive investigations.
Section 301 addresses unfair trade practices or violations of trade agreements but mandates detailed and long-term reviews before implementation.
In this context, the current move is evaluated as a potential strategic transition period.