Summary
President Donald Trump's new global tariff of 10% is now in effect after a Supreme Court decision blocked his earlier tariff plans. The tariff is part of an effort to adjust trade relationships and address international payment issues. President Trump has considered increasing the tariff to 15% but has not yet made an official decision.
Key Facts
- President Trump signed an executive order to impose a new global tariff of 10% starting on February 24.
- The Supreme Court had previously blocked broader tariff measures, prompting this new tariff through an executive order.
- The tariff is authorized under Section 122 of the 1974 Trade Act, allowing a temporary tariff for 150 days without needing Congress's approval.
- The tariff aims to reduce the U.S. trade deficit by adjusting trade relationships.
- The U.S. trade deficit increased to about $1.2 trillion, a 2.1% rise from 2024 levels.
- Since using the 1977 International Emergency Economic Powers Act, the U.S. has collected at least $130 billion in tariffs.
- President Trump criticized the Supreme Court's ruling as "ridiculous" and "anti-American."
- Countries like the UK, EU, and India are reconsidering trade deals and responses in light of the U.S. tariff changes.
