Late Friday night, President Trump signed a proclamation establishing a 10% tariff on the majority of foreign imports entering the United States. This move came just hours after the Supreme Court ruled that a previous set of global tariffs issued under a different legal framework was invalid. The new duties are scheduled to go into effect early Tuesday morning and will remain in place for 150 days.
While the order is broad, it does include specific carve-outs. Certain food items, critical minerals, electronics, and automobiles are exempt from the 10% hike. Additionally, goods arriving from Canada and Mexico that fall under existing trade agreements negotiated during Trump’s first term will not be subject to these new costs.
In a post on Truth Social, the president described the action as a “Great Honor” and noted that the global tariff would be effective almost immediately. The rapid shift in strategy highlights the administration’s efforts to maintain a central pillar of its economic agenda—using trade barriers to address national deficits and encourage domestic manufacturing.
The legal battle centered on the International Emergency Economic Powers Act (IEEPA), which the White House originally used to justify steep, worldwide tariffs. On Friday, the Supreme Court ruled that the IEEPA does not grant the executive branch the authority to impose such duties.
To circumvent this, the new proclamation utilizes Section 122 of the Trade Act of 1974. This specific provision allows a president to implement duties of up to 15% for 150 days specifically to address “large and serious” balance-of-payment issues.
The status of previous, higher-rate “reciprocal” tariffs and specific levies against China remains uncertain.
When asked by reporters if prior trade deals would survive this transition, Trump indicated that while many would stand, others would be replaced by the new tariff structure. Notably, the Supreme Court’s decision did not affect existing tariffs on steel, aluminum, or auto imports.
Looking forward, the administration appears to be preparing for more targeted trade actions.
The White House confirmed that U.S. Trade Representative Jamieson Greer has been directed to launch investigations into “unreasonable and discriminatory” trade practices under Section 301 of the Trade Act. Greer stated these probes will cover most major trading partners on an accelerated timeline, potentially leading to additional tariffs in the near future.
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