President Donald Trump on Saturday announced that he will raise a temporary tariff on US imports from all countries from 10% to 15%, a day after the US Supreme Court ruled against his signature tariff program based on an economic emergency law.
Infuriated by the Supreme Court’s verdict, Trump on Friday ordered an immediate 10% tariff on all imports, in addition to any existing duties. Section 122 of the Trade Act of 1974 permits the President to impose a levy of up to 15% for 150 days, although the move could face further legal challenges.
“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 US off for decades, without retribution (until I came along!), to the fully allowed, and legally tested, 15% level,” Trump wrote in a post on Truth Social.
Announcing the revised rate, Trump said he would implement the full 15% tariff allowed under the statute. Trump said that during the 150-day period, his administration will work on issuing new and “legally permissible” tariffs.
SECTION 122: FAST BUT TEMPORARY
Section 122 of the Trade Act of 1974 allows a president to impose tariffs of up to 15 per cent for a maximum of 150 days to address what the law calls large and serious United States balance-of-payments deficits, in simple terms, when imports far exceed exports.
Unlike other trade laws, Section 122 does not require lengthy investigations before tariffs take effect. That makes it a quick-response tool.
However, it comes with limits. Any tariff under Section 122 cannot exceed 15 per cent and cannot last beyond 150 days unless Congress approves an extension.
US SUPREME COURT TERMED TRUMP TARIFFS ‘ILLEGAL’
The US Supreme Court termed President Donald Trump’s sweeping tariffs “illegal” on Friday.
The Supreme Court, in a 6-3 verdict, upheld a lower court’s decision that had said the US President overstepped his power while using the 1977 International Emergency Economic Powers Act (IEEPA) while announcing the tariffs. The justices concluded that the Act did not grant Trump the authority he claimed to have had to impose the tariffs.
‘I CAN DO ANYTHING I WANT’
Trump on Friday, addressing a press conference, argued that while the US Supreme Court ruling restricted tariffs under the International Emergency Economic Powers Act (IEEPA), it does not limit other executive tools.
“I can destroy the trade, I can destroy the country. I’m even allowed to impose a foreign country-destroying embargo. I can embargo. I can do anything I want, but I can’t charge $1 because that’s not what it says,” he said. “How ridiculous is that?”
He cited Justice Brett Kavanaugh’s dissent, which suggested the decision may not significantly constrain future presidential tariff authority.
“He’s right. In fact, I can charge much more than I was charging,” Trump said.
“We have alternatives, great alternatives,” Trump added. “Could be more money. We’ll take in more money, and we’ll be a lot stronger for it.”
He said several Section 301 unfair trade practice investigations are being launched “to protect our country from unfair trading practices of other countries and companies.”
