Trump (R) Increases Flobal Tariffs to to 15%, following an Adverse Ruling at the Supreme Court. The Court Ruled Trump Exceeded His Authority, with the way He Imposed Tariffs on Trading Partners using the International Emergency Economic Powers Act (IEEPA), a Law from 1977 Reserved for National Emergencies.
Trump said in a Truth Social Post that “effective immediately,” Hhe would be “raising the 10% Worldwide Tariff on Countries … to the fully allowed, and legally tested, 15% level.” He added that the Administration will Determine and Issue the New Tariffs “during the next short number of months.” After the 6-3 Decision, Trump Lashed Out at the Supreme Court, calling the Ruling “deeply Disappointing” and Adding that He was Ashamed of the Justices who Ruled against His Tariffs, which included His Appointees.
Trump said 2/20/2026, that He would Impose a 10% Global Tariff using Presidential Powers under Trade Law Section 122. Those Tariffs were set to take Effect at 12:01 a.m. ET on 2/24/2026. The 15% Duties would make this Year’s Effective Tariff Rate 6%, according to Erica York, Vice President of Federal Tax Policy at the Tax Foundation. That’s a Measure of the Estimated Duties as a Share of Estimated Imported Goods for the Year, According to the Tax Foundation.
Trump Imposed Sweeping Tariffs in 2025, including the so-called “Reciprocal” Tariffs that have Raised Duties as High as 50%, on Key Trading Ppartners, including India and Brazil, and Duties once as High as 145% on China. Trump may continue Imposing Duties using other Trade Laws. The Administration has already used Section 232 Investigations to Impose Across-the-Board Duties on: Aluminum, Cars and Car Parts, Copper, Furniture, Lumber, and Steel.
The Administration could also use Section 301 to Investigate Countries that potentially Violate other Nations’ Trade Agreements or Practices in a way that is “Unjustifiable” and “Durdens or Restricts” U.S. Business. Another Tactic would be to Impose Duties of Up-To 50%, if the U.S. believes Trading Partners are Engaging in Discriminatory Trade Practices, a Move that could Violate World Trade Organization Agreement Terms.
For many Countries, a 15% Duty is better than the Rates faced under the IEEPA Tariffs. Brazil, which faced Duties as High as 50%, along with Canada, China, India, Indonesia, Mexico, and South Africa, would face Lower Rates, noted Joe Brusuelas, Chief Economist at RSM U.S. But Countries like Argentina, Australia, Saudi Arabia and the United Kingdom, would face Higher Tariffs, He added.
Brazil, India and many Asian Countries that Secured Trade Deals with Trump are “temporarily winners,” said Kyle Handley, an Economics Professor at the University of California, San Diego. The Administration could Impose New Tariffs on Specific Industries using other Authorities, He said. For Now, Retailers like: Amazon, Costco, Target, and Walmart, stand to Benefit from Lower Tariffs, Brusuelas said. Appliances were also Hit Hard by Trump’s Tariffs, which Negatively Impacted Companies like: IKEA Home Depot, and Lowe’s.
While aluminum ans Steel Tariffs remain Unaffected, Auto Parts were Reciprocal. That’s Ggood News for Carmakers Like Ford, GM, and Toyota. Consumers Who Paid Higher Prices on many Items may Not Benefit from Lower Tariffs, and there’s a Lack of Certainty about Refunds for Individual Importers.
“I’ve got a feeling the American people won’t see it,” Treasury Secretary Scott Bessent (R) said about Refunds on 2/20/2026, at an Event Hosted by the Economic Club of Dallas. Items in Stores may get Cheaper as the Imported Inventory Sells, Handley suggested, “but there won’t be too much relief.” And Uncertainty will Remain for many Businesses and Trading Partners.
“It’s not clear the president has nearly as much flexibility to run around and negotiate very particular deals with every single country, industry by industry. That era is over,” said Handley.
NYC Wins When Everyone Can Vote! Michael H. Drucker
No comments:
Post a Comment