In a bold move that has sent shockwaves through international trade, U.S. President Donald Trump announced early Saturday that he is elevating his newly introduced global tariffs from 10 per cent to 15 per cent. This decision comes in the wake of a U.S. Supreme Court ruling that deemed his earlier tariff programme an overreach of his presidential powers. The new tariff rate, described by Trump as “fully allowed” and “legally tested,” will take effect immediately.
Supreme Court Ruling Sparks Controversy
The announcement follows a ruling from the Supreme Court on Friday, which determined that Trump had exceeded his authority when imposing tariffs on countries including Canada and Mexico under emergency provisions. Trump expressed his disdain for the court’s decision, labelling it “ridiculous, poorly written, and extraordinarily anti-American” in a social media post.
He justified his new tariffs by claiming they are the result of a “thorough, detailed and complete review” of the court’s findings, asserting that trade partners have been “ripping off” the U.S. for years without consequence—until his administration took charge.
Tariff Implementation and Duration
The newly declared tariff, which is set to last for 150 days, will commence on Tuesday. Trump’s administration is reportedly working on alternative legal frameworks to impose tariffs, a fundamental aspect of his economic strategy. He stated, “During the next short number of months, the Trump Administration will determine and issue the new and legally permissible Tariffs, which will continue our extraordinarily successful process of Making America Great Again.”
The White House clarified that this new tariff will not affect goods compliant with the Canada-U.S.-Mexico Agreement on free trade (CUSMA), which is scheduled for review later this year. In addition, Trump indicated that specific tariffs targeting industries such as steel, aluminium, automobiles, and lumber will remain unaffected by the court’s ruling.
Implications for Trade Relations
The decision to raise tariffs is already raising concerns among trade experts and industry leaders. The potential for increased trade tensions between the U.S. and its international partners, particularly Canada and Mexico, could have far-reaching consequences for businesses and consumers alike. As tariffs impact the cost of imported goods, the ripple effects may lead to price hikes for consumers.
Moreover, the announcement underscores Trump’s ongoing commitment to his “America First” agenda, which prioritises U.S. economic interests over global trade cohesion. The ramifications of this policy shift may exacerbate existing trade wars, complicating relationships with key allies and partners.
Why it Matters
Trump’s tariff increase is a significant escalation in the ongoing tension over international trade policies, particularly in the context of his administration’s already strained relations with Canada and Mexico. As the global marketplace continues to adjust to these tariffs, businesses and consumers alike should brace for potential price increases and shifts in supply chains. This development not only highlights the complexities of U.S. trade policy but also raises questions about the long-term sustainability of such aggressive economic measures amidst a recovering global economy. The coming months will be crucial in determining the actual impact of these tariffs and how they will reshape the landscape of international trade.
