Episode: #394

In this in-depth roundtable discussion, Andy and Lalo welcome back Eric Hargraves, a listener favorite and trade policy expert known for breaking down complex issues with clarity. This episode tackles one of the hottest topics in global trade: the future of tariffs, IEEPA, and how the Supreme Court’s upcoming decision could reshape U.S. trade policy.

Eric shares his early analysis of the recent Supreme Court oral arguments on the use of IEEPA (International Emergency Economic Powers Act) to impose broad, country-wide tariffs—an approach now under scrutiny. Together, they explore whether the U.S. is shifting away from country-of-origin-based tariffs toward sector-based or product-based tariff frameworks, and what that means for importers, exporters, and manufacturers.

They also take a historical walk through Section 232 and 301, discuss China’s role in the global supply chain, unpack forced labor concerns, and examine how trade policy is being used not just as an economic tool—but a geopolitical one.

If your business relies on global sourcing, supply chain planning, cost modeling, or tariff strategy, this is a must-listen episode that cuts through political noise and focuses on operational reality.

Why the Court is skeptical about using IEEPA for broad tariff actions

Clarifying the difference between regulating importation and imposing de facto taxes

What a ruling against IEEPA tariffs could trigger

Eric outlines an emerging pattern:

More Section 232 investigations (steel, aluminum, copper, lumber, autos, medical devices, robotics)

More code-specific exclusions and carve-outs

More targeted vs. country-wide tariff strategies

The group revisits:

Post-WWII tariff negotiations and asymmetrical concessions

How China’s WTO accession reshaped global manufacturing

Forced labor issues (UFLPA) and global ethical responsibilities

Why bipartisan support exists for confronting unfair trade practices

Why 232 tariffs matter for:

Defense industrial base

Pharmaceuticals

Critical minerals

Rare earths

Robotics and advanced manufacturing

Andy and Eric also highlight how trade agreements with partners like Australia and Japan support de-risking supply chains.

Eric provides three practical action steps:

Map exposure & opportunities

Understand current tariffs vs. new exemptions/exclusions

Identify where sectoral shifts may affect your sourcing

Prepare for legacy frameworks to shift

USMCA review in 2026

New carve-outs in CAFTA-DR and other bilateral frameworks

Don’t pivot your supply chain based on rumors

Only respond to published Federal Register notices + CBP guidance

Model landed cost scenarios now to act quickly later

He also warns companies to anticipate supplier renegotiations if tariff burdens disappear—they may try to claw back FOB discounts.

Section 301 tariffs

Section 232 investigations

UFLPA (Uyghur Forced Labor Prevention Act)

WTO, GATT, and historical tariff frameworks

U.S. bilateral trade agreements and exemptions

Federal Register notices

CBP CSMS guidance