Trashing US top court, Trump raises new tariff to 15% from 10%, Pg3

Key Highlights:

• President Trump imposed a 15% tariff on all goods imported to the US for 150 days, after the US Supreme Court struck down his previous tariff policy.
• The new tariff was initially set at 10% under Section 122 of the Trade Act of 1974, then raised to 15%.
• India will now face a 15% tariff rate, which is lower than the previous 18%.
• The US Supreme Court ruling limited President Trump's ability to impose tariffs using the International Emergency Economic Powers Act (IEEPA).

Detailed Insights:

• The US Supreme Court invalidated Trump's country-specific tariffs imposed under IEEPA, restoring Congress's role in trade policy.
• Section 122 of the Trade Act of 1974 allows a temporary imposition of tariffs up to 15% for a maximum of 150 days in response to international payment issues.
• The new tariffs could impact recent trade deals with countries like the UK, Japan, EU, Malaysia, Indonesia, Vietnam, and the ongoing negotiations with India.
• The Trump administration may use Section 232 of the Trade Expansion Act of 1962 and Section 301 of the 1974 Trade Act to implement tariffs, but these require formal investigations.
• The removal of IEEPA levies is expected to lower America's effective tariff rate by about half, according to Yale University's Budget Lab.

Key Concepts Involved:

• Tariff: A tax or duty imposed on goods when they are moved across a customs border.
• International Emergency Economic Powers Act (IEEPA): A US law authorizing the President to regulate international commerce during a national emergency.
• Section 122 of the Trade Act of 1974: A US law that allows the temporary imposition of tariffs in response to international payments problems.