President Trump signed a proclamation Friday night imposing a 10% tariff on most foreign imports to the United States, following a Supreme Court decision earlier that day striking down a previous set of sweeping global tariffs.
Modern Tariffs Take Effect Tuesday
The new tariffs will take effect early Tuesday morning and remain in place for 150 days. Certain goods are exempt, including some food imports, critical minerals, electronics, and cars. Goods from Canada and Mexico covered by an existing trade deal are also exempt. As President Trump stated in a Truth Social post, “We see my Great Honor to have just signed, from the Oval Office, a Global 10% Tariff on all Countries, which will be effective almost immediately.”
The administration is attempting to reinstate a broad tariff regime, previously reliant on the International Emergency Economic Powers Act (IEEPA), which the Supreme Court ruled could not be used to impose tariffs. The new levies mirror a 10% baseline tariff rate rolled out last spring on goods from numerous U.S. Trading partners. Mr. Trump has argued that tariffs are necessary to address trade deficits and revive American manufacturing.
Previous tariffs included “reciprocal” tariffs on several countries and levies on goods from China, Canada, and Mexico linked to drug trafficking concerns. The Tax Foundation estimated in November that replacing IEEPA tariffs with 10% Section 122 tariffs would generate just over half the revenue of the previous system, and potentially less if importers wait out the 150-day period.
When asked about existing trade deals, Mr. Trump stated, “Some of them stand. Many of them stand. Some of them won’t, and they’ll be replaced with the other tariffs.” The Supreme Court ruling did not affect tariffs issued under authorities other than IEEPA, including those on steel, aluminum, and auto imports.
U.S. Trade Representative Jamieson Greer’s office has been directed to open investigations into trade practices under Section 301 of the Trade Act, which could lead to additional tariffs. Greer expects these probes to cover “most major trading partners” and be conducted on an “accelerated timeline.”
Frequently Asked Questions
What prompted the new tariffs?
The new tariffs were signed shortly after the Supreme Court struck down a set of sweeping global tariffs issued under the International Emergency Economic Powers Act (IEEPA).
Are any goods exempt from the new tariffs?
Yes, certain food imports, critical minerals, electronics, cars, and goods from Canada and Mexico covered by a trade deal are exempt from the 10% tariffs.
What is Section 301 of the Trade Act?
Section 301 of the Trade Act allows the government to impose tariffs and other measures to correct unfair trade practices.
How might these new tariffs impact international trade relations moving forward?
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