Economy

Trump’s new global tariffs take effect after Supreme Court setback

10:30

By: Sahili Aya

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New global tariffs introduced by U.S. President Donald Trump officially came into force on Tuesday, marking a significant shift in Washington’s trade policy. The measure establishes a baseline 10% duty on a wide range of imported goods, with the president signaling that the rate could increase to 15% following further review.

The announcement follows a recent ruling by the Supreme Court of the United States that invalidated a substantial portion of previously imposed tariffs. In response, the administration invoked a 1974 trade law that allows the executive branch to address major imbalances in the balance of payments without prior congressional approval, though any extension beyond 150 days would require a vote in Congress.

The new 10% tariff replaces several earlier blanket measures but does not affect sector-specific duties already in place. Industries such as copper, automobiles, and construction materials remain subject to separate levies ranging from 10% to 50%. Goods imported from Canada and Mexico under the North American trade framework are also exempt from the new surcharge.

According to estimates from the Budget Lab at Yale University, the policy is expected to bring the average effective U.S. tariff rate to approximately 13.7%, compared with about 16% before the Supreme Court ruling. Analysts note that while the new measure is narrower in scope, it still represents a substantial adjustment to trade flows.

The court’s decision, based on a 1977 emergency economic powers statute, concluded that the administration had not sufficiently demonstrated the economic emergency required to justify some of the earlier tariffs. The ruling has opened the door to potential reimbursement claims from companies that had already paid duties under the invalidated framework.

Logistics giant FedEx filed a lawsuit shortly after the decision, challenging aspects of the tariff regime. Business groups argue that ongoing uncertainty could disrupt supply chains and investment planning.

The executive order enacting the new tariffs is set to run until late July, just months before the November midterm elections. Trade policy is expected to remain a central campaign issue, with debates focusing on inflation, competitiveness, and federal revenue. Supporters of the measure argue that tariffs are necessary to rebalance trade deficits and generate government income, while critics warn of higher consumer costs and strained international relations.