President Donald Trump moved quickly on Saturday to raise a newly proposed global import tax to 15%, a sharp increase coming less than 24 hours after he initially set the rate at 10%. The rapid adjustment follows a major legal defeat at the Supreme Court, which recently dismantled much of the administration’s previous trade policy.
The judicial branch delivered a significant blow to the White House on Friday when a 6-3 majority ruled that the administration’s aggressive use of the International Emergency Economic Powers Act (IEEPA) of 1977 was unconstitutional for broad, blanket tariffs. While specific duties on semiconductors and automotive parts remained intact, the ruling effectively wiped out the majority of existing trade levies.
Responding to the court’s decision via social media, Trump announced the immediate hike to the 15% threshold. He characterized the move as a shift to a “legally tested” level, aimed at nations he claims have long taken advantage of American trade policies.
READ: Potomac Sewage Crisis: White House Taps EPA To Take The Lead After Massive Infrastructure Failure
To bypass the legal hurdles established by the Supreme Court’s Friday ruling, the administration is now invoking Section 122 of the 1974 Trade Act. This specific provision grants the president the authority to impose a “temporary import surcharge” of up to 15% if the nation faces serious balance-of-payments deficits or to protect the value of the U.S. dollar. Unlike the previous open-ended tariffs, this law limits the duration of the tax to 150 days unless Congress intervenes.
Even with the increase to 15%, the new policy represents a complex shift for the global economy. For major partners like the European Union and Japan, the rate matches what they paid before the court’s intervention. However, for countries like Mexico, Canada, and China, the shift to a flat 15% rate actually constitutes a significant reduction from the higher, sector-specific duties they previously faced.
As the new taxes take effect, the administration is already looking for ways to extend its trade leverage. U.S. Trade Representative Jamieson Greer confirmed that the government is launching “accelerated” Section 301 investigations into major trading partners. These probes seek to determine if foreign trade practices are “unjustifiable” or restrictive to U.S. commerce, potentially opening the door for further duties once the initial 150-day window on the global tariff expires.
Add the Tampa Free Press as a preferred source on Google
Please make a small donation to the Tampa Free Press to help sustain independent journalism. Your contribution enables us to continue delivering high-quality, local, and national news coverage.
Sign up: Subscribe to our free newsletter for a curated selection of top stories delivered straight to your inbox
