In a decisive move, U.S. President Donald Trump announced on Saturday that he is raising new global tariffs from 10% to 15%. This change comes in the wake of a U.S. Supreme Court ruling that deemed his previous tariff implementation unlawful. The increase is set to take effect immediately, with Trump asserting that the new rate is “fully allowed” and “legally tested.”
A Reaction to the Supreme Court
Trump’s announcement follows the Supreme Court’s decision on Friday, which concluded that he had exceeded his presidential authority by imposing tariffs on Canada, Mexico, and other nations under emergency powers. In a scathing social media post, he labelled the court’s ruling as “ridiculous, poorly written, and extraordinarily anti-American.” The President stated that his revised tariffs were informed by a “thorough, detailed and complete review” of the court’s findings, further accusing international trade partners of having exploited the U.S. for decades without facing consequences—“until I came along!”
The new tariff, which is set to last for 150 days, will officially begin on Tuesday.
Plans for Future Tariffs
In light of the court ruling, the Trump administration is reportedly working on alternative strategies to impose tariffs, which have become central to his economic agenda. “During the next short number of months, the Trump Administration will determine and issue new and legally permissible tariffs, which will continue our extraordinarily successful process of Making America Great Again,” the President stated.
The White House has also clarified that these new tariffs will not affect goods that comply with the Canada-U.S.-Mexico Agreement (CUSMA), a trade deal expected to undergo review later this year. Furthermore, tariffs already imposed on specific industries, including steel, aluminium, automobiles, and lumber, will remain unchanged despite the court’s decision.
Implications for Global Trade Relations
This tariff increase signals a renewed focus on trade policy under the Trump administration, potentially escalating tensions with U.S. trading partners. The move has drawn criticism and concern from various sectors, particularly those reliant on cross-border trade. As Canada and Mexico navigate these changes, questions arise regarding the long-term impact on the North American trade landscape and global economic stability.
The announcement has implications for businesses and consumers alike, as increased tariffs could lead to higher prices on imported goods. The uncertainty surrounding these trade policies may also affect investor confidence and consumer behaviour in the coming months.
Why it Matters
Trump’s decision to raise global tariffs is a significant shift that could redefine trade dynamics not only in North America but across the globe. As the U.S. grapples with the repercussions of this ruling, the broader implications for international relations and economic policy are yet to unfold. This escalation may further complicate an already tense global trade environment, prompting stakeholders to reassess their strategies in light of the U.S.’s evolving trade stance.
