United States President Donald Trump has raised the US global tariff from 10 to 15 percent, just days after the Supreme Court struck down his sweeping levies on imports.
The move, announced on Saturday, comes as businesses and governments around the world seek repayment for the estimated $133bn that Washington has already collected. Trump made the announcement on his Truth Social platform, citing a review of the Supreme Court's decision as the basis for the increase.
The Supreme Court had ruled that it was unconstitutional for Trump to unilaterally set and change tariffs, as the power to tax lies with the US Congress. The court's decision struck down tariffs that Trump had imposed on nearly every country using an emergency powers law.
Tariff Background
The 15 percent hike is the highest rate allowed under Section 122 of the Trade Act of 1974, which Trump invoked to impose the blanket tariff. However, these tariffs are limited to 150 days unless they are extended by Congress.
The White House said that the Section 122 tariffs include exemptions for certain products, including critical minerals, metals, and energy products. Trump wrote that his administration will continue to work on issuing other permissible tariffs.
International Response
Governments around the world have reacted to the Supreme Court decision and Trump's subsequent tariff announcement with a mix of cautious optimism, trepidation, and frustration. German Chancellor Friedrich Merz said he would coordinate a joint European stance before talks with Trump in early March.
John Diamond, director of the Center for Tax and Budget Policy at Rice University, said that while importers in the US may seek refunds, the path forward for such claims is not straightforward, especially for smaller firms. Foreign governments, such as Taiwan and Great Britain, are managing the real mess, Diamond said.
The US-Taiwan trade deal and the US-United Kingdom deal are among those affected by the Supreme Court's decision. Trump's trade representative, Jamieson Greer, told Fox News that countries must honour their agreements even if they call for higher rates than the Section 122 tariffs.
Source: Al Jazeera
