Trump Announces Recent 10% Global Tariff After Supreme Court Defeat

President Donald Trump on Friday announced a new 10% global tariff on all imports, just hours after the Supreme Court struck down his previous attempt to impose broad tariffs using the International Emergency Economic Powers Act (IEEPA). The new tariffs, authorized under Section 122 of the Trade Act of 1974, will seize effect “almost immediately” and are in addition to existing tariffs.

Supreme Court Ruling and IEEPA

The Supreme Court’s 6-3 ruling determined that IEEPA does not grant the President the authority to impose tariffs. This decision invalidated many of the tariffs Trump had implemented, which were central to his trade agenda and aimed at rebuilding America’s manufacturing base. Reuters reported the swift response from the administration.

Section 122 of the Trade Act of 1974

Section 122 allows the President to impose tariffs of up to 15% on all imports for up to 150 days to address “large and serious” balance-of-payments issues. Unlike IEEPA, it does not require formal investigations or procedural limitations. The Hill details how Trump is pivoting to this alternative.

Impact on Existing Tariffs and Countries

The White House indicated that the new 10% tariffs will replace the IEEPA-based duties. This could lead to lower U.S. Tariff rates for countries that had previously negotiated lower rates or were in trade talks with the U.S., such as the European Union, which had agreed to a 15% tariff under IEEPA.

China, which faced a combination of 10% IEEPA-based tariffs and a 25% duty, will now be subject to the new 10% global tariff, bringing its total tariff rate to 35%, according to a White House official. NPR provides further context on the economic implications.

Trump’s Defiance and Future Actions

Despite the Supreme Court’s ruling and the 150-day time limit of Section 122 tariffs, Trump expressed his intention to continue imposing tariffs through other legal pathways. He also announced the launch of investigations into unfair trade practices under Section 301, which could lead to additional tariffs. He stated, “I have the right to do tariffs.”

Treasury Secretary’s Assessment

Treasury Secretary Scott Bessent stated that the administration expects the new tariffs to result in “virtually unchanged tariff revenue in 2026.”

Key Takeaways

• The Supreme Court invalidated Trump’s tariffs imposed under IEEPA.
• Trump responded by enacting a 10% global tariff under Section 122 of the Trade Act of 1974.
• Section 122 tariffs are temporary, lasting up to 150 days, and require congressional approval for extension.
• The administration plans to utilize Section 301 to investigate unfair trade practices and potentially impose further tariffs.