Trump vows new 10% global tariff after Supreme Court verdict

United States President Donald Trump has vowed to replace tariffs struck down by the Supreme Court with a temporary 10% global import duty for 150 days and ordered new investigations under other laws that could allow him to re-impose the tariffs.

Trump signed executive orders late on Friday to impose new tariffs starting on Tuesday under Section 122 of the Trade Act of 1974, partly replacing tariffs of 10% to 50% under the 1977 International Emergency Economic Powers Act that the top court declared illegal, and ending collection of the now-banned duties.

The orders continued exemptions already in place for aerospace products; passenger cars and some light trucks; goods from Mexico and Canada that are compliant with the U.S.-Mexico-Canada trade agreement; pharmaceuticals and certain critical minerals and agricultural products.

Trump’s Treasury Secretary, Scott Bessent, said the new 10% duties and potentially enhanced tariffs under the Section 301 unfair practices statute and the Section 232 national security statute would result in virtually unchanged tariff revenue in 2026.

“We will get back to the same tariff level for the countries. It will just be in a less direct and slightly more convoluted manner,” Bessent told Reuters, adding that the Supreme Court decision had reduced Trump’s negotiating leverage with trading partners.

The never-used Section 122 authority allows the president to impose duties of up to 15% for up to 150 days on any and all countries to address “large and serious” balance of payments issues. It does not require investigations or impose other procedural limits. After 150 days, Congress would need to approve their extension.

Trump said: “We have alternatives, great alternatives. Could be more money.

“We’ll take in more money and we’ll be a lot stronger for it.”

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The 10% tariffs only last five months, but Trump said that would allow his administration to complete investigations to enhance tariffs.

Asked if rates would ultimately end up being higher after more probes, Trump said: “Potentially higher. It depends. Whatever we want them to be.”

The 10% tariff order justified use of the Section 122 statute, noting that the U.S. had a “large and serious balance of payments deficit” and said the situation was getting worse.

While the administration will likely face legal challenges, the Section 122 tariffs would lapse before any final ruling could be made, said Josh Lipsky, international economics chair at the Atlantic Council, a think tank in Washington.

Trump said his administration also was initiating several new country-specific investigations under Section 301 of the Trade Act of 1974 “to protect our country from unfair trading practices of other countries and companies.”

The executive order directed the U.S. Trade Representative’s office to investigate “certain unreasonable and discriminatory acts, policies and practices that burden or restrict U.S. commerce,” but did not identify any specific targets.

USTR already has open probes on China and Brazil, and could take aim at other big trading partners including Vietnam and Canada.

The Star