Trump and the 10% Global Tariff: Defying a Supreme Court Defeat
President Donald Trump has moved to bypass a major legal setback by announcing a new 10% global tariff under Section 122 of the Trade Act of 1974. The decision comes immediately after a 6-3 Supreme Court ruling invalidated the administration's use of the International Emergency Economic Powers Act (IEEPA) to levy broad import duties. While the court's decision initially threatened the pillar of Trump's trade agenda, Treasury Secretary Scott Bessent maintains that the new executive order will ensure tariff revenue remains steady throughout 2026. This tactical shift introduces a 150-day window of certainty before congressional approval is required, while simultaneously launching fresh investigations into global trade practices. The shift creates a complex landscape for trading partners: while China’s total rate reaches 35%, some partners like the EU might see temporary reductions from their previously negotiated 15% rates now that the IEEPA-based agreements are legally invalidated.
Topics Covered
- 🏛️ The Supreme Court's 6-3 ruling against IEEPA-based tariff authority.
- 💼 Trump's 10% global tariff announcement and the invocation of Section 122.
- 🌍 Impact on international trade partners including China and the EU.
- ⚖️ The 150-day time limit on the new executive order and congressional requirements.
- 📊 Treasury Secretary Scott Bessent's revenue projections for the 2026 fiscal year.
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