President Donald Trump of the United States declared on Friday his intention to implement a 10% global tariff on imports. This announcement came just hours after the Supreme Court partially struck down his tariff plan rooted in the International Emergency Economic Powers Act (IEEPA) of 1977.
Speaking to the press in Washington, Trump indicated his plan to sign an executive order within three days. This action will be grounded in Section 122 of the Trade Act of 1974, which authorizes the imposition of tariffs up to 15% for a maximum duration of 150 days.
"Effective immediately, all NATIONAL SECURITY TARIFFS, Section 232 tariffs, and existing Section 301 tariffs remain fully enforced," Trump emphasized. "Today, I will sign an Order to institute a 10% GLOBAL TARIFF under Section 122, in addition to our existing tariffs," he stated.
The Supreme Court's decision declared that the executive branch lacks inherent peacetime authority to levy tariffs under the IEEPA, as these tariffs are considered a form of taxation and thus require Congressional approval.
Clearly frustrated by the judicial ruling, Trump clarified that the court did not invalidate the tariffs themselves but merely a "specific use" of the IEEPA. He remarked, "I can do whatever I want with the IEEPA, impose a total embargo, but I cannot charge anyone a single dollar for it. It's ridiculous, but it doesn't matter because we have other means."
In addition to the Trade Act of 1974, Trump referenced the Trade Expansion Act of 1962, signed by John F. Kennedy, which broadens presidential authority to adjust tariffs for national security reasons. He also mentioned the Smoot-Hawley Tariff Act of 1930, known for significantly increasing import duties during the Great Depression.
The president assured that he possesses "very powerful alternatives" to uphold his trade policy, although he acknowledged that the new mechanisms might involve a more complex and lengthy process.
This announcement reignites global trade tensions and could provoke immediate reactions in international markets, as well as retaliatory measures from the United States' trade partners.
Trump has consistently defended his tariff strategy as a tool to protect domestic industry and reduce the trade deficit, a central pillar of his economic policy ahead of the upcoming midterm elections on November 3.
With this new measure, the White House underscores that, despite the judicial setback, the trade war will continue to be a crucial element of Trump's economic agenda.
Understanding Trump's New Tariff Strategy
What is the new global tariff announced by Trump?
President Trump announced a 10% global tariff on imports, following a Supreme Court decision that partially invalidated his previous tariff plan under the IEEPA.
Why did the Supreme Court rule against Trump's tariff plan?
The Supreme Court ruled that the executive branch does not have inherent authority in peacetime to impose tariffs under the IEEPA, as they are considered taxes requiring Congressional approval.
How does Trump plan to enforce the new tariff?
Trump plans to sign an executive order based on Section 122 of the Trade Act of 1974, allowing for tariffs up to 15% for up to 150 days.