President Donald Trump raised his newly imposed global tariffs from 10% to the maximum 15% under Section 122 of the 1974 Trade Act, effective immediately post-Supreme Court ruling invalidating IEEPA-based duties.
Supreme Court Ruling Recap
In a 6-3 decision, the court ruled Trump exceeded IEEPA authority for broad import tariffs, limiting presidential power during non-emergencies. Chief Justice Roberts emphasized Congress’s role in trade policy.
Section 122: Trump’s New Weapon
Section 122 authorizes up to 15% tariffs for 150 days to address balance-of-payments deficits, extendable by Congress. Exemptions cover pharma, energy, critical minerals; applies atop existing duties.
Section 232: National Security Tariffs
Authorizes unlimited tariffs if imports threaten security (steel, autos, copper). Ongoing probes target lumber, auto parts; unaffected by ruling.
Section 301: Unfair Practices Response
Targets IP theft, subsidies (e.g., China 145% rates). USTR investigations lead to targeted duties; Trump vows expansions.
Global Implications
India aligns at 15% per recent deal; markets volatile with refund battles looming. New levies temporary but signal aggressive trade reset.
