In a significant escalation of his trade agenda, US President Donald Trump has announced he will raise his new global tariff rate to 15 per cent, up from the previously imposed 10 per cent. This move comes just one day after the US Supreme Court delivered a major blow by striking down his earlier tariff policy.
Legal Context and Presidential Authority
Trump's initial tariffs were implemented under section 122 of the 1974 Trade Act, which grants the president authority to impose import restrictions for periods of up to 150 days. He signed a proclamation establishing a temporary 10 per cent duty on a wide range of imports using this provision.
The Supreme Court's ruling determined that Trump had overstepped his executive powers by utilizing the International Emergency Economic Powers Act to levy tariffs on dozens of countries. In response, the president has pivoted to alternative measures he had previously vowed to deploy.
Immediate Implementation and Future Plans
Earlier today, Trump declared via a social media post that the increase to 15 per cent is effective immediately. He stated, "I am immediately raising the 10 per cent Worldwide Tariff on Countries, many of which have been ripping the US off for decades, without retribution (until I came along!), to the fully allowed, and legally tested, 15 per cent level."
He further indicated that his administration will use the coming months to assess and issue new tariffs that comply with legal standards. "During the next short number of months, the Trump administration will determine and issue the new legally permissible tariffs," he added.
This development marks a critical juncture in US trade policy, as Trump continues to assert aggressive economic measures despite judicial pushback. The raised tariffs are expected to impact global trade dynamics and international relations significantly.
