In a press briefing on Friday, President Trump announced that his administration will impose a new “10% global tariff” in response to the Supreme Court’s ruling which struck down his previous tariffs. The high court, in a decisive 6-3 vote, determined that the International Emergency Economic Powers Act (IEEPA) did not provide the president with the authority to levy tariffs, representing a significant setback for the Trump administration’s economic strategy.
Expressing his disappointment, Trump stated, “The ruling was deeply disappointing.” The president indicated that the previously implemented tariffs, which were justified under IEEPA, would be replaced with a global tariff authorized under Section 122 of the Trade Act of 1974. This move signals a shift in the administration’s approach to trade policy following the court’s decision.
Furthermore, Trump announced that the administration plans to initiate multiple trade investigations under Section 301, a provision that allows for action against foreign unfair trade practices. He emphasized that the new measures would utilize “methods, statutes, practices, and authorities” acknowledged by both Congress and the judiciary that might be “even stronger than IEEPA tariffs.” Trump claimed that these alternative measures would ultimately boost revenue for the country, aligning with the court’s decision.
The president reassured stakeholders that all “national security tariffs” currently in place under Sections 232 and 301 would remain unaffected by the ruling. This includes tariffs imposed under Section 232 of the Trade Expansion Act of 1962, which are justified based on national security concerns. As a result, import duties affecting various products—including copper, semiconductors, and automobiles—will continue to be enforced. Specifically, the tariffs include a 50% levy on semi-finished copper products, 25% tariffs on certain imported semiconductors (including key products like Nvidia’s H200 chips), as well as a 25% levy on imported trucks and a 10% tariff on buses.
This new shift in tariff strategy indicates an ongoing commitment from the Trump administration to assert its trade policies, even in the face of judicial challenges. As the administration prepares to implement these changes, it remains to be seen how the new global tariff will influence international trade relations and the U.S. economy.
