President Trump has announced the imposition of new global tariffs, initially set at 10%, which he has since raised to 15%. This action follows a Supreme Court ruling on Friday that invalidated a previous set of sweeping global tariffs.
Supreme Court Ruling and Response
The Supreme Court’s decision struck down tariffs imposed by the Trump administration using the International Emergency Economic Powers Act, or IEEPA. The court ruled that IEEPA does not authorize the President to impose tariffs. In response, President Trump stated he signed an executive order enacting the new 10% tariffs under Section 122 of the Trade Act of 1974.
Legal Basis for New Tariffs
The tariffs enacted under Section 122 of the Trade Act of 1974 will take effect “almost immediately.” This legal provision allows the president to impose duties of up to 15% for 150 days to address “large and serious” balance-of-payment issues. The 15% tariffs are an increase from the initial 10% announced the day prior.
Exemptions and Existing Tariffs
Certain goods are exempt from the 10% (now 15%) tariffs, including specific food imports, critical minerals, electronics and cars. Goods from Canada and Mexico covered by a pre-existing trade deal are also exempt. The new tariffs are in addition to existing levies that remain in effect following the Supreme Court’s ruling.
Frequently Asked Questions
What prompted these new tariffs?
These tariffs were announced after the Supreme Court struck down a previous set of global tariffs, leading President Trump to seek alternative legal means to impose duties on imports.
How long will these tariffs be in effect?
The new tariffs will be in place for 150 days.
What is Section 122 of the Trade Act of 1974?
Section 122 of the Trade Act of 1974 is a legal provision that allows the president to impose duties of up to 15% for 150 days to address “large and serious” balance-of-payment issues.
What impact will these tariffs have on the global economy and consumer prices?
