Washington: U.S. President Donald Trump has signed a proclamation to impose a new 10 percent global tariff, following a Supreme Court ruling that struck down his previous use of the 1977 International Emergency Economic Powers Act (IEEPA) to justify country-specific tariffs and other duties. Trump described the court's decision as "deeply disappointing" and vowed to implement other measures to replace the voided sweeping emergency duties.
According to Yonhap News Agency, the new tariff is set to take effect at 12:01 a.m. on Tuesday. Trump invoked Section 122 of the 1974 Trade Act, a provision permitting the president to impose import restrictions such as tariffs and quotas. Certain goods, including specific critical minerals, metals used in currency and bullion, energy products, certain agricultural products, and a variety of vehicles, will be exempt from the duty, as stated in a fact sheet released by the White House.
During a press conference, Trump emphasized that his administration has "even stronger measures" than the IEEPA, and announced plans to initiate several investigations under Section 301 of the 1974 Trade Act to protect the U.S. from unfair trading practices. Under Section 122, the president can impose import surcharges of up to 15 percent and other measures like import quotas to address serious external trade and financial imbalances for up to five months initially.
Trump reassured that his administration possesses "numerous" other tools to impose duties, despite the court's decision. He highlighted that existing statutes and authorities, as recognized by the court and Congress, are even stronger than the IEEPA tariffs. The president mentioned provisions under Sections 122, 201, and 301 of the 1974 Trade Act, and Section 338 of the 1930 Tariff Act as legal tools available for maintaining tariff policies.
Criticizing the court's ruling, Trump claimed foreign countries benefiting from the decision are "ecstatic," but assured they "won't be dancing for long." He suggested that the court was influenced by foreign interests and a smaller-than-expected political movement. Previously, in April, Trump announced an IEEPA-based reciprocal tariff plan, citing trade deficits as an "unusual" and "extraordinary" threat to national security and the economy.
However, the Supreme Court stated that the U.S. Constitution grants Congress the sole power to impose tariffs during peacetime, and the foreign affairs implications do not justify relinquishing tariff power without careful limits. Despite the ruling, the Trump administration had levied reduced reciprocal tariffs on South Korean products after a bilateral agreement where Seoul pledged to invest significantly in the U.S.