Source: Fortune
Summary
President Donald Trump increased the global tariff from 10% to 15% just hours after signing an order establishing the initial rate. The move follows the Supreme Court’s ruling striking down his previous tariffs under the International Emergency Economic Powers Act. The new tariffs, imposed under Section 122 of the 1974 Trade Act, must be applied uniformly across all trading partners. The rate hike conflicts with the Trump administration’s trade deal with the UK, which had set a 10% rate. Analysts expect trade uncertainty to remain elevated in the coming months.
Our Reading
The announcement sounds familiar.
Trump’s tariff hike from 10% to 15% is a sudden move that upends his signature trade deal with the UK. The new rate must be applied uniformly across all trading partners, which conflicts with the UK’s 10% rate. Experts point out that the Section 122 tariffs are also legally dubious. Trump’s decision may have been driven by the need to generate more revenue. The effective tariff rate will rise 2 points to 14.5%. The administration will also initiate investigations under Section 301, which could lead to more tariffs.
The numbers tell one story, but the real story is about who’s getting an “eff you” from Trump.
Author: Evan Null
