U.S. President Donald Trump’s new global trade tariffs went into effect at a 10% level at midnight on Tuesday after a Supreme Court ruling struck down a bulk of his earlier levies.
The 10% level was communicated through the U.S. Customs and Border Protection’s messaging service, and is lower than the 15% tariff touted by Trump after the Supreme Court ruling last week.
Trump had initially declared a universal tariff of 10% in response to the ruling, and had a day later raised the levy to 15%. Media reports said the White House was now working on raising the levy to the president’s preferred 15% level.
Trump’s new tariffs are issued under Section 122 of the Trade Act of 1974, after the country’s top court ruled that Trump overstepped his authority in issuing tariffs under the International Emergency Economic Powers Act.
The 10% levy will apply to all goods imported to the U.S. unless specifically exempt, customs said, and will be valid for a period of 150 days– until July 24, 2026. Trump will then have to seek Congressional approval to keep his tariffs in place.
In a separate notice, U.S. customs said Trump’s suspension of de minimis exemption for low-value imports also still remained in place.
Media reports over the weekend showed a host of countries seeking renegotiation and clarity from the White House over the Supreme Court ruling, given that it calls into question a host of trade deals struck by the U.S. in the past year.
Last week’s ruling also did not resolve the question of what the government will do with the revenue collected from Trump’s tariffs, which is estimated to be at least more than $160 billion.
FedEx Corporation (NYSE:FDX) on Monday evening sued the U.S. government, seeking a “full refund” of all the duties paid under Trump’s now-illegal tariffs. Several other companies are also seeking legal action over the tariffs.
Source: Investing