U.S. President Donald Trump says he will raise a temporary tariff from 10 percent to 15 percent on U.S. imports from all countries, the maximum level allowed under law, after the U.S. Supreme Court struck down his previous tariff program.
The move came less than 24 hours after Trump announced an overall rate of 10 percent on Saturday (AEDT) after the court ruling.
The ruling found that the president had exceeded his authority when he imposed a series of higher tariffs under an emergency economic law.
The new duties are based on a separate but untested law known as Section 122, which allows tariffs of up to 15 percent but requires congressional approval to extend them after 150 days.
No president has previously invoked Section 122, and its use could lead to further legal challenges.
Trade experts and congressional aides are skeptical that Congress with a Republican majority would extend the tariffs, given polls showing more and more Americans blaming tariffs for higher prices.
In a social media post on Saturday, Trump said he would use the 150-day period to work on enacting other “legally authorized” tariffs.
The government plans to invoke two other laws that allow import taxes on specific products or countries based on investigations into national security or unfair trade practices.
“I, as President of the United States of America, will immediately increase the 10% global tariff on countries, many of which have been ‘impeaching’ the US for decades, without retaliation (until I came along!), to the fully permitted and legally tested level of 15%,” he wrote in a Truth Social post.
According to the White House, the Section 122 tariffs include exemptions for certain products, including critical minerals, metals and energy products.
Wendy Cutler, a former senior U.S. trade official and senior vice president at the Asia Society think tank, said she was surprised that Trump had not opted for the maximum Section 122 tariff on Saturday, adding that his rapid change underscored the uncertainty facing trading partners.
Trump improperly used tariff law, Supreme Court says
The Supreme Court decision, written by Chief Justice John Roberts, concluded that the law Trump used for most of his tariffs, the International Emergency Economic Powers Act, did not grant the president the powers he claimed.
Roberts was joined in the majority by fellow conservatives Neil Gorsuch and Amy Coney Barrett, both Trump appointees, and the court’s three liberal justices.
Trump reacted angrily to the ruling, calling the majority justices “fools” and describing Gorsuch and Barrett in particular as “embarrassments” as he vowed to continue his global trade war.
Some foreign leaders applauded the decision. French President Emmanuel Macron said on Saturday that the ruling shows that it is good for democracies to have counterweights to power and the rule of law.
German Chancellor Friedrich Merz said he expected the decision to ease burdens on German companies. He said he would use his upcoming U.S. trip to reiterate that “the tariffs are hurting everyone.”
Trump has used tariffs, or the threat of imposing them, to enforce trade deals with foreign countries.
After the court ruling, Trump’s trade representative Jamieson Greer told Fox News on Saturday that those countries must honor agreements even if they demand higher tariffs than the Section 122 rates.
Exports to the U.S. from countries such as Malaysia and Cambodia would continue to be taxed at the negotiated rate of 19 percent, even though the universal rate is lower, Greer said. Indonesia’s chief negotiator for US tariffs, Airlangga Hartarto, said the trade deal between the countries that set US tariffs at 19 percent would remain in force despite the court ruling.
The ruling could mean good news for countries like Brazil, which has not signed a deal with Washington to reduce the 40 percent rate but could now see that rate drop, at least temporarily, to 15 percent.
With the November midterm elections approaching, Trump’s approval rating for his handling of the economy during his year in office has steadily declined. A Reuters/Ipsos poll concluded on Monday found 34 percent of respondents saying they agree and 57 percent saying they disapprove.
Affordability remains a top priority for voters. Democrats, who only need to flip three Republican-held seats in the U.S. House of Representatives in November to gain a majority, blame Trump’s tariffs for exacerbating the rising cost of living.
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