Washington: U.S. President Donald Trump signed a proclamation on Friday to enforce a new 10 percent global tariff, following a Supreme Court decision that nullified his previous emergency duties. The high court's ruling deemed Trump's use of the 1977 International Emergency Economic Powers Act (IEEPA) to impose "reciprocal" tariffs on specific countries as unjustifiable, prompting him to turn to Section 122 of the 1974 Trade Act.
According to Yonhap News Agency, the new tariff, which is set to take effect at 12:01 a.m. on Tuesday, will exclude certain goods such as critical minerals, metals used in currency and bullion, energy products, certain agricultural products, and specific vehicle categories. Trump emphasized that his administration has "even stronger measures" than those provided by the IEEPA, as he announced the plan during a press conference.
Trump stated, "Today, I will sign an order to impose a 10 percent global tariff under Section 122 over and above our normal tariffs already being charged." He also revealed plans to initiate several Section 301 investigations to counteract unfair trading practices by other nations.
Section 122 grants the president authority to impose import surcharges up to 15 percent and other measures for up to five months to address trade and financial imbalances. Trump indicated that during this period, the administration will conduct investigations necessary to implement fair tariffs.
Beyond the Section 122 measure, the Trump administration plans to launch Section 301 investigations targeting "unjustifiable, unreasonable, discriminatory, and burdensome" trade practices by major partners. These investigations will focus on issues like industrial excess capacity, forced labor, pharmaceutical pricing, discrimination against U.S. tech firms, and digital goods and services, according to U.S. Trade Representative Jamieson Greer.
Trump criticized the court's decision, asserting that it might not significantly limit a president's future ability to impose tariffs. He highlighted that his administration possesses numerous legal tools, including sections of the 1974 Trade Act and the 1930 Tariff Act, to continue its tariff strategy.
Expressing discontent with the ruling, Trump accused foreign nations benefiting from the decision of celebrating prematurely. He also suggested that the court was influenced by foreign interests and a minor political movement.
In response to the court's stance that only Congress holds peacetime tariff authority, Trump outlined the persistent trade deficits and barriers faced by the U.S., which he views as threats to national security and the economy. Despite the setback, the administration remains committed to pursuing equitable trade policies and leveraging available legal avenues to maintain its tariff agenda.