"President Trump announces a revised 10% global tariff starting Tuesday, potentially rising to 15%. Following Supreme Court ruling, new tariffs implemented
Title: Global Tariff Changes Announced by President Trump to Begin Tuesday at 10%, Potentially Rising to 15%
Lead:
President Donald Trump has announced a revised global tariff policy, effective from Tuesday, initially set at a rate of 10%. However, the U.S. administration is reportedly working on raising this to 15% in a separate order, as per Section 122 of trade law.
Background:
- On Friday, the Supreme Court struck down most of Trump's tariff agenda, prompting the president to announce a 10% flat tariff for all trading partners using an alternative trade law (Section 122).
- The new tariff policy was initially announced to commence at 15%, but on Truth Social, Trump stated he would "raise the 10% Worldwide Tariff ... to the fully allowed, and legally tested, 15% level."
- Under Section 122, tariffs of up to 15% can be applied quickly, but only for a period of 150 days.
Implementation:
- U.S. Customs and Border Protection has informed importers that the initial rate will be 10%, affecting every country for 150 days, unless specifically exempt.
- The administration official confirmed to NBC News that the message to importers was accurate, stating that the global tariff would start at 10%, with plans to raise it to 15% in a separate order signed by Trump.
- No timeline for the raising of tariffs to 15% has been provided.
Global Response:
- The European Union (EU) has suspended implementation of a massive trade deal with the U.S., citing renewed uncertainty as a result of the tariff changes.
- Other trading partners, such as India, China, Switzerland, and the United Kingdom, are considering their response to the tariff changes.
Legal Concerns:
- Most of the trade framework deals reached since early last year were implemented under the International Emergency Economic Powers Act, the 1977 law the Supreme Court declared Trump had misused when imposing sweeping tariffs last year.
- The back-and-forth over tariff changes has been described as a return to trade "chaos" by European Union lawmakers and other international stakeholders.
Key Notes:
- Global tariffs to start at 10% on Tuesday.
- U.S. Administration aiming to raise tariffs to 15%.
- Tariff increases subject to Section 122 of trade law, allowing up to a 15% tariff for 150 days.
- European Union freezes implementation of trade deal with the U.S. due to renewed uncertainty.
- Other trading partners considering their response to tariff changes.
- Most recent trade deals implemented under International Emergency Economic Powers Act, which was deemed misused by the Supreme Court last year.
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