Could tariffs take a more permanent turn?

Russell Price, Chief Economist – Ameriprise Financial

August 17, 2026 

The tariff story continues to evolve. After a year marked by reciprocal tariffs, court challenges and shifting trade policies, the Trump administration has announced a new set of import duties affecting approximately 80 countries and nearly all U.S. trade. 

More importantly, the latest actions rely on statutory authorities that allow tariffs to remain in place longer than previous trade actions. While the rates themselves may look familiar, the framework behind them suggests that elevated tariffs could become a more permanent feature of the U.S. economic and investment landscape.  

Here’s what you need to know about the new tariffs: 

Why the latest tariffs may have more staying power 

In late July, the Trump administration announced new tariffs ranging from 10% to 12.5% on imports from approximately 80 countries, representing an estimated 99% of U.S. trade. The administration says the new measures are structured to withstand legal challenges and will be implemented using Section 301 of the Trade Act of 1974, a provision designed to address unfair trade practices. 

Unlike some previous tariff programs that were temporary in nature, Section 301 tariffs can remain in place indefinitely unless they are revoked by the U.S. trade representative. As a result, businesses and investors may increasingly view these tariffs as a longer-term feature of the trading environment rather than a short-term policy tool. 

Additional trade actions could also be ahead: The administration may pursue tariffs under Section 232 of the Trade Expansion Act of 1962, which addresses imports deemed to threaten national security. 

The chart below highlights the primary trade authorities available to the administration and how long tariff actions can generally remain in effect. 

U.S. tariff authorities at a glance 

Source: Ameriprise Financial, Trade Act provisions. 

How legal challenges and economic pressures reshaped U.S. trade policy 

The latest announcement follows a turbulent period for U.S. trade policy. 

What happened with the previous tariffs? 

On April 2, 2025, the president announced broad "reciprocal" tariffs affecting most countries around the world. Financial markets reacted sharply, with the S&P 500 falling 12.1% over the following week as investors weighed the risks of rising inflation, reduced global trade and pressure on corporate earnings.  

Did the tariffs affect the economy? 

While some of the worst fears never materialized, tariffs did have measurable economic effects. Inflation rose from 2.3% in April 2025 to 3.0% by September, and Federal Reserve economists estimate the reciprocal tariffs increased costs for core consumer goods by approximately 3.4%. Supply chains have continued to adjust, though trade policy uncertainty has remained elevated.  

Why were the reciprocal tariffs reversed? 

Earlier this year, the Supreme Court ruled that the reciprocal tariffs implemented under the International Emergency Economic Powers Act (IEEPA) were invalid. The decision required the federal government to refund tariff revenue that had already been collected. According to Bloomberg, the Treasury Department had returned nearly $100 billion in tariff-related fees as of early July.  

What replaced the reciprocal tariffs? 

Following that ruling, the administration temporarily shifted to a 10% tariff on most imported goods using Section 122 of the Trade Act of 1974. However, that authority is limited to 150 days and expired in July. The newly announced Section 301 tariffs effectively replace that temporary measure.  

What could new tariffs mean for consumers? 

Tariffs can contribute to higher prices by increasing the cost of imported goods and components used by U.S. businesses. The impact varies by product category and industry, and many companies absorb at least a portion of the added costs. Even so, tariffs have become one factor influencing inflation and the cost of everyday goods. 

What could new tariffs mean for investors? 

For investors, the focus is often on corporate profitability. Bloomberg estimates the latest tariff package could place roughly 3% of S&P 500 earnings before interest and taxes (EBIT) at risk. However, many companies and investors have already spent more than a year adapting to a tariff-heavy environment, which could help reduce the impact compared with earlier periods.  

In our view, the risk to corporate earnings is likely to be partially offset by the fact that future results will be compared against periods that already reflected elevated tariff levels. 

More trade developments are on the horizon 

Trade policy headlines extend beyond the newest tariff package. 

• U.S.-Mexico-Canada Agreement (USMCA): Earlier this month, the administration chose not to automatically renew the USMCA. The agreement remains in force, but annual reviews will now occur through 2036. 

• Canadian import tariffs: The administration also announced new tariffs on approximately $20 billion of selected Canadian imports.  

• Generic drug tariffs: Separately, the president announced plans for tariffs on generic pharmaceutical imports beginning in August 2028. The proposed rates would start at 100% and increase to 200% in 2029. Because these measures would not take effect for a few years, they are unlikely to have meaningful near-term market implications.  

Bottom line 

The legal framework behind U.S. tariffs may be changing, but the broader policy direction remains largely intact. The latest round of tariffs suggests trade barriers are likely to remain an important part of the economic and investment landscape, with implications for inflation, business costs and corporate earnings. While markets have become more accustomed to tariff-related developments, investors should expect trade policy to remain a source of uncertainty and a potential driver of market volatility in the months ahead. 

Keep perspective 

If you have questions about how the larger macroeconomic environment may affect your financial picture, reach out to an Ameriprise financial advisor. They can identify financial strategies to help guard against uncertainty and keep you focused on your long-term financial goals.