In a significant development, President Trump announced during a press briefing on Friday that his administration will implement a “10% global tariff” in response to a recent ruling by the Supreme Court. The Supreme Court, in a 6-3 decision, struck down the president’s extensive tariff regime, asserting that the International Emergency Economic Powers Act (IEEPA) does not grant the president the authority to impose tariffs. This ruling poses a substantial setback for the Trump administration’s economic strategies.
Expressing his dissatisfaction with the court’s decision, Trump described it as “deeply disappointing.” Following this legal setback, the administration plans to pivot from the tariffs previously imposed under IEEPA to a new global tariff established under Section 122 of the Trade Act of 1974. This transition reflects a strategic move to align with legal parameters recognized by the judiciary and legislative branches.
Additionally, Trump announced that the administration will initiate multiple trade investigations under Section 301, which further underscores the administration’s commitment to maintaining its aggressive trade policies. According to the president, these new measures are designed to be “even stronger than IEEPA tariffs,” with the expectation that they will “actually increase” the revenue entering the country.
It is worth noting that all existing national security tariffs, enacted under Section 232 and Section 301, will remain unaffected by the Supreme Court’s ruling. This includes a wide range of import duties on products linked to national security concerns, such as copper, semiconductors, automobiles, and wood products. Specifically, Section 232 tariffs impose a 50% levy on semi-finished copper products, a 25% tariff on certain imported semiconductors—including Nvidia’s H200 chips—and various tariffs on automotive imports, including 25% levies on trucks and 10% on buses.
Overall, the administration’s pivot toward new tariffs and investigations reflects a determination to adapt in the face of judicial challenges, while aiming to bolster the U.S. economy and safeguard national security interests.
