Trump invokes 1974 Trade Act to lift global tariffs to 15 per cent: US media (Ld)
Washington, Feb 22
US President Donald Trump raised a newly imposed global tariff to 15 per cent, invoking Section 122 of the Trade Act of 1974 as reported by The Wall Street Journal, a move that escalates his trade offensive a day after the US Supreme Court struck down much of his earlier tariff regime.
In a post on Truth Social, Trump said the increase followed "a thorough, detailed, and complete review of the ridiculous, poorly written, and extraordinarily anti-American decision on Tariffs issued yesterday" by the Supreme Court.
"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 U.S. off for decades, without retribution (until I came along!), to the fully allowed, and legally tested, 15% level," he wrote.
"During the next short number of months, the Trump Administration will determine and issue the new and legally permissible Tariffs, which will continue our extraordinarily successful process of Making America Great Again - GREATER THAN EVER BEFORE!!!" he added.
According to a Wall Street Journal report, the 15 per cent levy is being imposed under Section 122 of the Trade Act of 1974, a provision that allows the president to impose tariffs of up to 15 per cent for 150 days unless Congress approves an extension.
The Journal noted that Section 122 has never before been used for tariffs and must apply universally to all imports rather than target individual countries.
A separate report in The Wall Street Journal said the Supreme Court's 6-3 ruling rejected the administration's argument that the International Emergency Economic Powers Act authorised the sweeping duties.
Chief Justice John G. Roberts Jr., writing for the majority, held that the president could not "impose tariffs on imports from any country, of any product, at any rate, for any amount of time" under that statute, according to The Washington Post.
Trump reacted sharply. "The Supreme Court's Ruling on TARIFFS is deeply disappointing!" he posted. "I am ashamed of certain Members of the Court for not having the Courage to do what is right for our Country." He also thanked Justices Thomas, Alito and Kavanaugh for their "Strength, Wisdom, and Love."
The New York Times reported that Trump had initially set his replacement global rate at 10 per cent before raising it to 15 per cent, the maximum permitted under the statute, signalling that he would press ahead with his aggressive trade strategy despite the legal setback.
The newspaper noted that the flat rate would now apply to exports from all countries, regardless of prior trade concessions.
According to The Washington Post, the Supreme Court's decision invalidated tariffs that had generated more than $130 billion in import taxes, raising questions about potential refunds and adding fresh uncertainty for companies and foreign governments.
The Journal further reported that goods already subject to national security tariffs - including steel and automobiles - would not face the additional 15 per cent levy.
In the longer term, the administration is expected to explore Section 301 and Section 232 authorities to impose more durable, country-specific or sectoral tariffs, though such measures require investigations that can take months.
The New York Times noted that governments that had made concessions under earlier tariff pressure may now reassess their positions as Washington recalibrates its legal footing.
The ruling marks a significant judicial check on presidential trade powers. Yet Trump's swift pivot to a new legal mechanism underscores his determination to keep tariffs at the centre of US economic and geopolitical strategy.
— IANS
Reader Comments
The Supreme Court check was necessary, but Trump's immediate workaround shows how volatile US trade policy is. Global supply chains, including those many Indian companies are part of, hate this uncertainty.
While "America First" is his slogan, a global tariff war hurts everyone. India should use this as a push to strengthen trade within Asia and with the EU. Time to reduce over-dependence on any single market.
Interesting legal move using a never-before-used section. But calling Supreme Court justices "cowardly" for upholding the law? That's not how mature democracies work, sir. Respect the institutions.
The silver lining is steel and autos are exempt, which are sensitive for us. But for how long? The article says they're looking at more "durable" country-specific tariffs next. We must be prepared.
$130 billion in invalidated tariffs! The refund question is huge. This kind of policy whiplash is bad for business confidence worldwide. Hope Indian policymakers are watching closely and planning contingencies.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.