US President Donald Trump has announced that he will raise a temporary tariff from 10% to 15% on US imports from all countries, the maximum level allowed under the law, after the US Supreme Court struck down his previous tariff programme.
The move came less than 24 hours after Trump announced a 10% across-the-board tariff on Friday after the court's decision. The ruling found the president had exceeded his authority when he imposed an array of higher rates under an economic emergency law, reported Reuters.
In a post on his Truth Social platform, Trump said the increase would take effect “immediately.” He described the Supreme Court’s ruling on Friday as a “ridiculous, poorly written and extraordinarily anti-American decision.”
The announcement came as businesses and governments worldwide sought repayment of an estimated $133 billion that Washington has already collected under the earlier tariff measures.
In a 6–3 decision, the Supreme Court ruled that it was unconstitutional for Trump to unilaterally impose and modify tariffs, stating that the power to levy taxes rests with Congress.
The ruling invalidated tariffs Trump had imposed on nearly every country under the International Emergency Economic Powers Act (IEEPA), an emergency powers law.
However, far from being a source of relief, the Supreme Court's takedown of Trump's tariffs has infused new risks and uncertainties into trade policy, US debt and the dollar, according to industry experts.
The Court made no decision on refunds, leaving open the possibility of a hole of around $170 billion in US finances. Trump's furious rush to impose replacement levies has already raised hackles in Europe and fresh confusion about trade policy.
The dollar slid through Monday in Asia, most notably against havens such as the Swiss franc and yen, while Treasuries have been stumped as markets struggled to come to grips with risks to the fiscal position and untangle the implications for inflation.
The newly announced 15% tariff represents the maximum rate permitted under that law. However, such tariffs are limited to 150 days unless Congress approves an extension.
It remains unclear whether an updated executive order will be issued.
According to Reuters, the White House said the Section 122 tariffs include exemptions for certain products, including critical minerals, metals, and energy resources.
Far from being a source of relief, the Supreme Court's takedown of Trump's tariffs has infused new risks and uncertainties into trade policy, US debt and the dollar, according to industry experts.
The Court made no decision on refunds, leaving open the possibility of a hole of around $170 billion in US finances. Trump's furious rush to impose replacement levies has already raised hackles in Europe and fresh confusion about trade policy.
The dollar slid through Monday in Asia, most notably against havens such as the Swiss franc and yen, while Treasuries have been stumped as markets struggled to come to grips with risks to the fiscal position and untangle the implications for inflation.
The clearest takeaway seems to be that Trump's replacement tariffs are lower and should ease short-term price pressures. But the Court has also crimped his power and the consequences of that for markets and the economy are unpredictable.
"Uncertainty is back, and given the latest muscle-flexing by European leaders, the risk of escalation is now higher than it was a year ago," ING analysts said in a note.