President Donald Trump announced Saturday he will raise a temporary tariff from 10 percent to 15 percent on U.S. imports from all countries, the maximum level allowed by law, after the U.S. Supreme Court struck down his previous tariff program.
Trump Imposes New Tariffs Following Supreme Court Ruling
Trump had immediately announced a 10 percent across-the-board tariff on Friday following the court’s decision, which found the president had exceeded his authority when he imposed higher rates under an economic emergency law.
The new levies are based on a separate, untested law – Section 122 – which allows tariffs up to 15 percent but requires congressional approval to extend them beyond 150 days. No U.S. president has previously invoked Section 122, and its use could lead to further legal challenges. Trade experts and congressional aides are skeptical the Republican-majority Congress would extend the tariffs, given polling data indicating growing public blame for higher prices.
In a social media post, Trump said he would use the 150-day period to work on issuing other “legally permissible” tariffs. The administration intends to rely on two other statutes permitting import taxes on specific products or countries based on investigations into national security or unfair trade practices.
“I, as President of the United States of America, will be, effective immediately, raising the 10% Worldwide Tariff on Countries, many of which have been ‘ripping’ the U.S. off for decades, without retribution (until I came along!), to the fully allowed, and legally tested, 15% level,” Trump wrote on Truth Social.
The Section 122 tariffs include exemptions for certain products, including critical minerals, metals, and energy products, according to the White House.
Wendy Cutler, a former senior U.S. trade official and senior vice president at the Asia Society think tank, expressed surprise Trump did not initially impose the maximum Section 122 rate on Friday, but noted his rapid change underscored the uncertainty facing trading partners.
Trump, who frequently refers to tariffs as his “favorite word,” has personally attacked individual justices and maintained his power to impose tariffs as he sees fit. He has used tariffs, or the threat of them, to secure trade deals from foreign countries.
Following the court’s decision, Trump’s trade representative, Jamieson Greer, told Fox News on Friday that countries must honor existing tariff agreements. Exports to the U.S. from countries like Malaysia and Cambodia will continue to be taxed at their negotiated rates of 19 percent, even though the universal rate is lower, Greer said.
The ruling could benefit countries like Brazil, which has not negotiated a deal with Washington to lower its 40 percent tariff rate but could now see its rate drop to 15 percent, at least temporarily.
Trump’s approval rating on his handling of the economy has steadily declined during his time in office, with 34 percent of respondents approving and 57 percent disapproving in a Reuters/Ipsos poll that closed on Monday.
Discover more from Archyworldys
Subscribe to get the latest posts sent to your email.
