Trump Escalates Trade War: 15% Global Tariff Imposed After Supreme Court Defeat
President Donald Trump has responded to a significant Supreme Court setback by raising his planned global tariff to 15% from 10%, escalating trade tensions and creating uncertainty for businesses worldwide. The move comes just a day after the court struck down the legal basis for many of his previous tariffs, a major blow to his economic agenda.
Supreme Court Ruling and Immediate Response
The Supreme Court, in a 6-3 decision, ruled that Trump had exceeded his authority when using the International Emergency Economic Powers Act (IEEPA) to impose tariffs on numerous countries. Following the ruling, Trump signed a proclamation enacting a 10% tariff under Section 122 of the Trade Act of 1974, allowing the president to set import restrictions for up to 150 days. He then quickly increased this to 15% via a social media post, stating the increase was “effective immediately.”
Financial Implications and Revenue in Limbo
The court’s decision has left approximately $142 billion in tariff revenue in question, according to the Budget Lab at Yale. Businesses are already seeking refunds on tariffs previously paid. Trump has indicated he will pursue further investigations into unfair trade practices under Section 301 of the 1974 Trade Act and explore tariffs under Section 232 of the Trade Expansion Act of 1962, targeting sectors deemed critical to national security.
Trump’s Reaction and Criticism of the Court
Trump has vehemently criticized the Supreme Court’s decision, calling it “ridiculous, poorly written, and extraordinarily anti-American.” He specifically expressed disappointment with Justices Amy Coney Barrett and Neil Gorsuch, whom he appointed, for voting against him, labeling them “an embarrassment to their families.”
Impact on International Trade and Key Economies
The increased tariff is a setback for the UK, which had secured a 10% tariff rate as part of a reciprocal trade deal with the US. William Bain, head of trade policy at the British Chambers of Commerce, stated that a wide range of UK goods exported to the US will now face an additional 5 percentage point increase. Experts suggest the move to 15% is designed to discourage a surge in exports to the US that might have occurred with the initially announced 10% tariff.
White House Strategy and Exemptions
The new 15% tariff, set to grab effect on Tuesday, includes exemptions for critical minerals, certain metals, pharmaceuticals, beef, tomatoes, oranges, specific aerospace products, and some vehicles. The White House maintains it will “honour” existing legally binding trade deals and expects its trading partners to do the same.
FAQ: Trump’s New Tariffs
Q: What is the new tariff rate?
A: The new global tariff rate is 15%.
Q: Why is Trump imposing these tariffs?
A: The Trump administration states the tariffs are intended to address international payments problems and rebalance trade relationships.
Q: Which countries are affected?
A: The tariff applies globally, impacting imports from all countries.
Q: Are there any exemptions?
A: Yes, exemptions include critical minerals, some metals, pharmaceuticals, beef, tomatoes, oranges, certain aerospace products, and some vehicles.
Did you know? The Supreme Court’s decision marks a growing trend of resistance to Trump’s assertions of broad executive power.
Stay informed about the evolving trade landscape. Explore our other articles on international trade policy and economic impacts of tariffs.
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