New tariff war erupts again! After losing in the Supreme Court, Trump imposes a new 10% tariff on global goods

U.S. President Trump signed an executive order on Friday to officially impose a 10% global tariff on all imported goods, aiming to quickly reshape his trade agenda amid legal challenges. Previously, the Supreme Court ruled 6-3 that Trump’s “reciprocal tariffs” imposed last year under the International Emergency Economic Powers Act (IEEPA) were illegal, invalidating tariffs on several major trading partners. To address this legal setback, Trump cited the authority granted by Section 122 of the Trade Act of 1974, attempting to fill the legal gap. This move not only raises the average U.S. tariff level but also sparks legal disputes over past tariff refunds.

(The high court explicitly rejected Trump’s tariff authority claim, with a 6-3 decision dealing a blow to the White House’s economic strategy)

Trump Imposes 10% “Global Tariffs” on Goods Worldwide

After a significant setback at the Supreme Court, Trump took a tough stance, stating he would find other ways to implement the rejected global tariffs. He later posted on social media:

“I am very honored to have just signed a bill in the Oval Office imposing a 10% global tariff on all countries, which will take effect immediately. Thank you all for your attention to this matter!”

Trump invoked Section 122 of the Trade Act of 1974, which grants the president unilateral authority to impose tariffs to address balance of payments issues. However, this legal tool has clear time constraints, with a statutory limit of only 150 days, and extensions require congressional approval. Compared to the permanent authorization under IEEPA, which was previously struck down by the Supreme Court, Section 122 can provide immediate legal cover but also puts pressure on the executive branch to pursue legislative lobbying.

Impact on Trade Partners and Average Tariffs

According to Bloomberg Economics, if the 10% baseline tariff is fully implemented, it could raise the U.S. average effective tariff rate from the current 13.6% to 16.5%. While Trump stated he would retain existing tariffs under Sections 301 and 232, punitive tariffs on Canada, Mexico, and China have been undermined by court rulings. Moving forward, the White House plans to initiate more trade investigations targeting specific industries (such as the auto sector, with tariffs potentially reaching 15% to 30%) to replace the current single-rate approach.

Legal Risks and Fiscal Expectations

The Supreme Court’s ruling leaves significant financial concerns: whether the illegally collected tariffs need to be refunded. Over 1,500 companies have filed lawsuits, with potential refunds totaling up to $170 billion—more than half of the total tariff revenue. Nonetheless, Treasury Secretary Scott Bessent remains optimistic, believing that by strengthening enforcement of Sections 232 and 301, tariff revenues will remain stable through 2026. This indicates the administration is attempting to offset legal risks through multiple administrative measures.

This article, “New Tariff Fight Resumes! After Supreme Court Loss, Trump Imposes 10% New Tariffs on Global Goods,” first appeared on Chain News ABMedia.