In a significant shift in trade policy, President Donald Trump has announced an increase in the global tariff rate to 15%. This decision comes on the heels of a recent ruling by the U.S. Supreme Court, which struck down tariffs implemented under the International Emergency Economic Powers Act (IEEPA).
Background of the Supreme Court Ruling
On a recent Friday, the U.S. Supreme Court declared that Trump’s tariffs were imposed illegally. The court’s decision focused on the authority used under IEEPA. Following this defeat, Trump sought to impose a new global tariff under Section 122 of the U.S. Trade Act.
New Tariff Implementation
Trump announced the hike in tariffs via his Truth Social platform, stating that the rate would go from 10% to 15%. He emphasized that this decision followed a thorough review of the court’s ruling. The tariffs are temporary and can only be enforced for 150 days unless Congress approves an extension.
Exemptions and Additional Tariffs
Despite the increased rate, goods compliant with the Canada-United States-Mexico Agreement (CUSMA) remain exempt from the new tariff. However, other tariffs are still enforced, particularly those using Section 232 of the U.S. Trade Expansion Act.
- Section 232 allows tariffs on specific goods when national security threats are suspected.
- Products affected include:
- Canadian steel
- Aluminum
- Copper
- Automotive parts
- Lumber and wood products
Next Steps for the Trump Administration
As the Trump administration navigates through this challenging scenario, they are expected to evaluate and announce new tariffs in the upcoming months. The focus remains on executing strategies to continue the growth initiative dubbed “Making America Great Again.”
Meanwhile, the implications of the Supreme Court decision have narrowed the scope of Trump’s tariff strategies, causing further scrutiny of his administration’s trade policies.
