The 10 percent tariff was scheduled to be implemented from February 24. However, it is not clear when the 15 percent tariff announced now will be implemented.
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US President Donald Trump has said he will raise global tariffs to 15 percent. Earlier on Friday, he had said that all goods imported into the US would be subject to a 10 percent tariff. But on Saturday, he made a new announcement on Truth Social, saying that the tariff would be 15 percent.
Countries like Australia and the UK have been left confused by this announcement. Earlier, the US had agreed to impose a 10 percent tariff with them. However, under Section 122 of the 1974 Trade Act, Trump has announced a new 15 percent tariff.
Trump seeks an alternative after the court ruling
After the US Supreme Court ruled that Trump's decision to use the International Emergency Economic Powers Act (IEEPA) of 1977 was unconstitutional, Trump decided to impose a new law and first impose a 10 and then a 15 percent tariff.
The court ruled that the power to impose new taxes under the IEEPA lies with Congress, not the president. As a result, the large customs duties imposed by the Trump administration on various countries were canceled.
The court had six judges against Trump's decision and three in favor. On Friday, Trump condemned the Supreme Court's ruling, accusing the judges of being manipulated by foreign interests.
Oxford Economics said Friday's decision was a major setback for Trump's economic agenda, as the Trump administration had set an ambitious goal of raising tariffs to raise about $3.6 trillion in revenue between 2026 and 2035.
After failing to use the IEEPA, Trump imposed the new tariffs using Section 122 of the 1974 Trade Act. It gives the president the authority to impose temporary import duties of up to 150 percent for 150 days. This section has never been used before.
The Trump administration has also said it is studying the possibility of imposing tariffs under Section 301 of the 1974 Trade Act. The law allows the US Trade Representative to investigate and take necessary action against other countries' trade practices.
Similarly, Trump can impose tariffs under Section 232 of the 1962 Trade Expansion Act, a practice he used extensively during his first term. It gives the government the power to impose tariffs on imported goods that threaten national security. Last April, he imposed tariffs on steel, aluminum, lumber and automobiles under the same article.
