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After a major setback from the U.S. Supreme Court, President Donald Trump has announced a sweeping 10% global tariff under Section 122 of the 1974 Trade Act. The move, effective February 24, will last five months and adds to existing duties.
Trade War Escalates as Trump Invokes Section 122 for New Duties
Washington: US President Donald Trump, immediately after receiving a major legal setback from the Supreme Court, has announced an additional 10% global tariff on the entire world. According to an order issued on Friday, this new tariff will take effect at 12:01 a.m. on February 24th and will remain in effect for the next five months. According to a White House fact sheet, this tariff will be in addition to the normal tariffs already in place.
Trump stated that he was taking this action under Section 122 of the Trade Act of 1974. This provision allows the president to impose a maximum 15% tariff for up to 150 days in the event of a "serious balance of payments problem." Notably, this provision has never been used before. Any extension beyond 150 days would require congressional approval.
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This new tariff will partially replace the tariffs imposed under the 1977 International Emergency Economic Powers Act (IEEPA), which the Supreme Court has declared invalid.
The Supreme Court ruled by a 6-3 majority that the President exceeded his authority by imposing broad import tariffs under the IEEPA. The court clarified that, according to the Constitution, the power to impose taxes rests with Congress, not the President. Justices Samuel Alito, Clarence Thomas, and Brett Kavanaugh dissented.
Following the decision, Trump called it "extremely disappointing." He said that foreign countries were pleased with the decision and wanted to continue exploiting the United States. Trump also accused some members of the court of being influenced by foreign interests. However, he stated that he had other legal options to continue the tariffs.
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Trump indicated that the trade practices of various countries would be investigated over the next five months and additional tariffs would be imposed if necessary. This has raised fears of an escalating global trade war. Experts believe that this decision and the new tariffs could increase instability in international markets and severely impact US trade relations.
