Trump Raises US Tariffs to 15% After Supreme Court Ruling

Trump Raises Tariffs to 15% Following Supreme Court Ruling

US President Donald Trump announced Saturday he is raising a temporary tariff from 10 percent to 15 percent on US imports from all countries, the maximum level allowed under the law, after the US Supreme Court struck down his previous tariff program.

The move comes just one day after the court found the president had exceeded his authority when he imposed an array of higher rates under an economic emergency law. Trump had initially announced a 10 percent across-the-board tariff on Friday following the Supreme Court’s decision, but quickly escalated the rate.

The new levies are based on a separate, but untested, law known as Section 122, which allows tariffs up to 15 percent but requires congressional approval to extend them beyond 150 days. No US president has previously invoked Section 122, and its use could lead to further legal challenges. Trade experts and congressional aides are skeptical that the Republican-majority Congress would extend the tariffs, given polling data indicating growing public blame for the duties contributing to higher prices.

In a post on his social media platform, Truth Social, Trump stated he would use the 150-day period to explore issuing other “legally permissible” tariffs. The administration intends to rely on two other statutes that permit 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 be, effective immediately, raising the 10% Worldwide Tariff on Countries, many of which have been ‘ripping’ the U.S. Off for decades, without retribution (until I came along!), to the fully allowed, and legally tested, 15% level,” Trump wrote.

The Section 122 tariffs include exemptions for certain products, including critical minerals, metals, and energy products, according to the White House.

Wendy Cutler, a former senior US trade official and senior vice president at the Asia Society think tank, expressed surprise that Trump hadn’t initially opted for the maximum Section 122 rate on Friday. However, she noted that his rapid change underscored the uncertainty now facing trading partners.

Trump, who has frequently described tariffs as his “favorite word,” has personally attacked individual justices and maintained he retains the power to impose tariffs as he sees fit. He has used tariffs, or the threat of them, to negotiate trade deals with foreign countries.

Following the court’s decision, Trump’s trade representative, Jamieson Greer, told Fox News on Friday that countries with existing tariff agreements should continue to honor them. This means exports to the US from countries like Malaysia and Cambodia would continue to be taxed at their negotiated rates of 19 percent, even though the universal rate is now lower.

The ruling could potentially benefit countries like Brazil, which had not negotiated a deal with Washington to lower its 40 percent tariff rate but could now see its rate drop to 15 percent, at least temporarily.

Trump’s approval rating on his handling of the economy has been declining, with a recent Reuters/Ipsos poll showing 34 percent approval and 57 percent disapproval as of Monday.