Washington: President Donald Trump has enacted a 10% import tariff on goods from all countries, following a Supreme Court decision that declared his previous use of tariffs illegal. The executive order, signed by Trump, is set to take effect on February 24th and will last for 150 days. During this period, any extension of the tariff will require the approval of Congress. Additionally, Trump has initiated an investigation to explore other legal avenues for imposing further taxes.
According to Thai News Agency, the newly imposed tariff is under Section 122 of the 1974 Trade Act, replacing earlier tariffs ranging from 10% to 50% which were implemented under the International Emergency Economic Powers Act of 1977 (IEEPA). The Supreme Court ruled that the IEEPA did not grant the president authority to impose such tariffs. Notably, the current 10% tariff excludes aerospace products, certain passenger cars and light trucks, goods from Canada and Mexico under the U.S.-Mexico-Canada Agreement, as well as pharmaceuticals, select essential minerals, and agricultural products.
Despite the court's ruling, Trump remains optimistic, suggesting there are alternative strategies that could generate more revenue and bolster the economy. The five-month duration of the tariff is intended to give the government time to identify methods for increasing tax revenues. Trump hinted at the possibility of higher taxes post-investigation, contingent on the desired revenue. He mentioned that countries perceived as unfair to the U.S. might face steeper taxes, while others might receive more favorable rates.
The Supreme Court's decision could potentially compel the U.S. government to refund approximately $175 billion in customs tax revenue collected last year to American importers. Trump indicated that such refunds would necessitate litigation, which could extend over 2-5 years, suggesting that immediate refunds are improbable.