The President of the United States, Donald Trump, announced on Friday that he will impose a 10% global tariff on imports, just hours after the Supreme Court partially invalidated his tariff scheme based on the International Emergency Economic Powers Act (IEEPA) of 1977.
During a press appearance in Washington, the leader indicated that he will sign "within three days" an executive order based on the Section 122 of the Trade Act of 1974, which allows for tariffs of up to 15% for a maximum period of 150 days.
"Effective immediately, all National Security TARIFS, Section 232, and the existing tariffs of Section 301 remain in force and fully operational. Today, I will sign an Order to impose a GLOBAL TARIFF of 10%, under Section 122, in addition to our regular tariffs already in place," Trump emphasized.
The ruling of the Supreme Court determined that the Executive does not have inherent authority in times of peace to impose tariffs under the IEEPA, as it considers that such levies constitute a tax and therefore require Congressional approval.
Trump, visibly upset by the court's decision, stated that the high court did not annul the tariffs themselves, but only a “particular application” of the IEEPA. “I can do what I want with the IEEPA, impose a total embargo, but I can't charge anyone a dollar for it. It's ridiculous, but it doesn't matter, because we have other ways,” he affirmed.
In addition to the Trade Act of 1974, the president mentioned the Trade Expansion Act of 1962, signed by John F. Kennedy, which expands presidential authority to modify tariffs for national security reasons, and the Smoot-Hawley Tariff Act of 1930, known for drastically increasing import duties during the Great Depression.
The president assured that he has "very powerful alternatives" to maintain his trade policy, although he acknowledged that the new mechanisms could involve a more complex and prolonged process.
The announcement reignites global trade tensions and could provoke immediate reactions in international markets, as well as retaliatory measures from the United States' trade partners.
Trump has repeatedly defended his tariff strategy as a tool to protect domestic industry and reduce the trade deficit, one of the central pillars of his economic policy leading up to the midterm elections on November 3rd.
With this new measure, the White House makes it clear that, despite the judicial setback, the trade war will continue to be a key focus of the president's economic agenda.
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