U.S. President Raises Global Tariff Rate From 10% to 15%

AP

U.S. President Donald Trump.

U.S. President Donald Trump said on Saturday that he would raise a temporary tariff on imports from all countries from 10% to 15%, the maximum level permitted under the law, following a ruling by the Supreme Court of the United States that struck down his previous tariff programme.

The announcement came less than 24 hours after President Trump introduced a 10% across-the-board tariff on Friday in response to the court’s decision. The ruling determined that the president had exceeded his authority by imposing a range of higher duties under an economic emergency statute.

The newly announced levies are based on a separate and largely untested legal provision, commonly referred to as Section 122, which allows tariffs of up to 15% but requires congressional approval for any extension beyond 150 days. No previous president has invoked Section 122, and its use may give rise to further legal challenges.

In a social media post on Saturday, President Trump said he would use the 150-day period to work on issuing other "legally permissible" tariffs. The administration intends to rely on two other statutes that permit import taxes on specific products or countries based on investigations into national security or unfair trade practices.

"I, as President of the United States of America, will be, effective immediately, raising the 10% Worldwide Tariff on Countries, many of which have been 'ripping' the U.S. off for decades, without retribution (until I came along!), to the fully allowed, and legally tested, 15% level," he wrote in a Truth Social post.

The Section 122 tariffs include exemptions for certain products, such as critical minerals, metals and energy goods, according to the White House.

In its ruling, authored by Chief Justice John Roberts, the Supreme Court of the United States concluded that the law President Donald Trump had relied upon for most of his tariffs — the International Emergency Economic Powers Act — did not grant the authority he had claimed. Roberts was joined in the majority by fellow conservative justices Neil Gorsuch and Amy Coney Barrett, both Trump appointees, as well as the court’s three liberal members.

The decision drew praise from some foreign leaders. French President Emmanuel Macron said the ruling demonstrated the importance in democracies of institutional checks and balances and the rule of law. German Chancellor Friedrich Merz said he expected the judgement would ease pressure on German companies and added that during his forthcoming visit to the United States he would reiterate that “tariffs harm everyone”.

Following the court’s decision, U.S. Trade Representative Jamieson Greer told Fox News that countries must honour previously agreed trade terms, even where they involve higher tariff rates than those permitted under Section 122.

Greer said exports to the United States from countries including Malaysia and Cambodia would continue to face their negotiated tariff rates of 19%, despite the lower universal rate.

Meanwhile, Indonesia’s chief negotiator on U.S. tariffs, Airlangga Hartarto, stated that the bilateral trade agreement setting U.S. tariffs at 19% — signed on Friday — remains in force despite the court’s ruling.

The judgement could also benefit countries such as Brazil, which has not reached a deal with Washington to reduce its 40% tariff rate. Under the new framework, Brazil’s rate could fall to 15%, at least on a temporary basis.

Source: Reuters



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