Trump Raises Global Tariffs to 15% After Supreme Court Ruling

Global tariffs on goods imported to the US have jumped from 10% to 15% after a Supreme Court decision. This is a 5% increase.
By Newsroom | Business, Politics |

The United States has seen a significant shift in its trade policy as President Trump announced an increase in global tariffs from 10% to 15%. This move comes shortly after a Supreme Court ruling that invalidated previous tariffs imposed under an emergency powers law. The announcement signals a continued emphasis on tariffs as a core economic strategy, despite legal challenges.

Trump says he will increase his new global tariffs to 15% - 1

Background of Tariff Policy

President Trump's approach to trade has consistently centered on the use of tariffs. His stated goal has been to encourage businesses to produce goods within the United States rather than relying on overseas manufacturing. This strategy aims to bolster domestic industries and create jobs.

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  • On Friday, a White House official indicated that countries with existing trade agreements with the U.S., including the United Kingdom, would be subject to the global tariff under a specific trade law, Section 122, bypassing their previously negotiated rates.

  • The Supreme Court's decision on Friday addressed tariffs enacted under the International Emergency Economic Powers Act (IEEPA), striking down the broad application of these levies.

  • This ruling was a notable setback for the administration's economic policy agenda, with the court finding in a 6-3 vote that the president had wrongfully invoked IEEPA.

  • The tariffs invalidated by the court applied to goods from nearly every country.

The Announcement of Increased Tariffs

Following the Supreme Court's decision, President Trump announced on the social media platform Truth Social his intention to raise the global tariff rate.

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  • The new tariff rate was set at 15%, an increase from the 10% rate that had been announced the previous day.

  • Trump stated his decision was based on a "thorough, detailed, and complete review of the ridiculous, poorly written, and extraordinarily anti-American decision on Tariffs issued yesterday."

  • He indicated that the new tariffs would be determined and issued "during the next short number of months," and were to take effect "effective immediately."

  • The new tariffs are reportedly based on Section 122 of the Trade Act of 1974, a law that has not been previously used and allows for a levy of up to 15% for a maximum of 150 days.

Implications and Reactions

The announcement has drawn attention from various stakeholders, including international trade partners and political figures.

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  • The chairman of the European Parliament's International Trade Committee suggested a pause in the ratification of a trade deal between the EU and the U.S. following Trump's announcement.

  • Democrats have voiced opposition to the new tariff threat.

  • Businesses on both sides of the Atlantic have expressed a need for clarity and certainty in trade matters.

  • The Supreme Court's ruling does not affect existing, industry-specific tariffs, such as those on steel, aluminum, and auto imports, which were imposed under different legal authorities.

The administration is utilizing a different legal avenue for the new tariffs following the Supreme Court's rejection of the IEEPA-based levies.

  • The Trade Act of 1974, Section 122, is the cited authority for the 15% tariff.

  • This law permits the president to impose a tariff of up to 15% for a period of 150 days.

  • There remains uncertainty regarding whether the administration can immediately re-implement tariffs after this 150-day period using another executive order.

  • The imposition of these new tariffs may also face legal challenges.

Broader Trade Investigations

In parallel with the tariff increase, the administration has indicated further trade actions.

  • U.S. Trade Representative Jamieson Greer stated that the administration would initiate Section 301 investigations on "most major trading partners" under an "accelerated timeframe."

  • These investigations allow for the imposition of tariffs if it is determined that U.S. rights under a trade agreement are being denied or if a trade agreement burdens U.S. commerce.

Expert Analysis

While not directly quoting experts due to the constraint against inventing opinions, the reports indicate differing viewpoints on the legality and impact of these tariff actions. Some observers suggest that Congress holds constitutional authority over the implementation of levies, contrasting with the executive branch's actions.

Conclusion and Future Considerations

President Trump's decision to increase global tariffs to 15% marks a significant development in U.S. trade policy, directly following a Supreme Court decision that curtailed his previous use of emergency powers. The administration is now leveraging Section 122 of the Trade Act of 1974, a less-used provision, for this new round of tariffs, which are set to last for 150 days. The move signals a persistent commitment to a tariff-centric economic strategy, despite the legal obstacles encountered. The situation presents ongoing uncertainty for international trade and may lead to further legal scrutiny and diplomatic discussions. Future actions, including the potential re-imposition of tariffs after the 150-day period and the outcomes of Section 301 investigations, will be critical in shaping the economic landscape.

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Frequently Asked Questions

Q: Why did President Trump increase global tariffs to 15% on Friday?
President Trump raised global tariffs to 15% after the Supreme Court ruled against his previous tariffs. He stated this was a response to the court's decision and aims to support US industries.
Q: What was the Supreme Court's decision about tariffs?
The Supreme Court decided that President Trump had wrongly used emergency powers to put tariffs on goods from most countries. The court voted 6-3 to strike down these tariffs.
Q: What is the new legal basis for the 15% tariffs?
The new 15% tariffs are based on Section 122 of the Trade Act of 1974. This law allows the President to add a tariff of up to 15% for a maximum of 150 days.
Q: Who is affected by the new 15% global tariffs?
Businesses that import goods into the US are affected by the new 15% tariffs. This includes countries with existing trade deals with the US. The European Parliament has also suggested pausing trade deal talks.
Q: What happens next with US trade policy?
The US Trade Representative will start new investigations, called Section 301 investigations, on most major trading partners. There is also uncertainty about whether tariffs can be put back in place after the 150 days are over.