Trump announces 10% global tariff after raging over Supreme Court loss
President Donald Trump recently signed an executive order imposing a new 10% “global tariff,” following a Supreme Court ruling against his “reciprocal” import duties. The high court invalidated the tariffs imposed using the International Emergency Economic Powers Act, prompting Trump to introduce the “Section 122” tariffs almost immediately. Trump expressed disappointment with the court’s decision and criticized its members for lacking the courage to do what he believes is right for the country.
The new global tariffs, with a 150-day time limit, will replace the invalidated IEEPA duties, potentially leading to lower tariff rates for countries involved in trade deals with the U.S. For example, the European Union’s 15% tariff under its trade deal with the U.S. may be affected by the change. The shake-up could also impact China, as its current total tariff rate of 35% may shift due to the new global tariff.
Despite the court ruling, Trump remains determined to impose tariffs without Congressional approval. He plans to explore alternative tariff pathways and hinted that rates imposed on countries may revert to their previous levels. Trump’s defiance extended to Justices Neil Gorsuch and Amy Coney Barrett, whom he criticized for their decision.
The new tariff order invokes Section 122 of the Trade Act of 1974, allowing tariffs to last for 150 days with the possibility of extension requiring congressional approval. Trump emphasized that tariffs under Section 232 and Section 301 will remain in effect. The administration will also utilize Section 301 for investigations into unfair trade practices, potentially resulting in additional tariffs.
Treasury Secretary Scott Bessent assured that revenue from tariffs will remain stable by leveraging other existing tariff laws. The administration aims to strengthen the economy through these measures, despite the legal setbacks.
