In a decisive move, U.S. President Donald Trump swiftly reacted to the Supreme Court’s ruling by implementing a temporary global import duty. On Friday, he signed executive orders establishing a 10% tariff for 150 days pursuant to Section 122 of the Trade Act of 1974, in response to nullified tariffs.
Exemptions for certain products remain, and the move could see minimal change in long-term tariff revenue. Trump’s administration has begun new Section 301 investigations to combat perceived unfair trading practices, reiterating the country’s balance of payments concerns as justification for the tariff shift.
While the move is poised to face legal challenges, Trump’s strategy is designed to leverage fast and flexible tariff impositions to strengthen the U.S. negotiating position, despite the Supreme Court’s undercutting his power. The fate of upcoming trade agreements remains uncertain as discussions continue.
(With inputs from agencies.)