US President Donald Trump’s new global tariffs have been implemented at a rate of 10% instead of the initially pledged higher percentage of 15%. This decision follows a Supreme Court ruling that blocked many of Trump’s import taxes. The administration’s official documents confirm that the 10% rate went into effect without any directive to increase it, raising concerns about the unpredictability surrounding the tariffs. Analysts, such as Carsten Brzeski from ING, view this rapid shift as exacerbating chaos in international trade relationships and increasing the risk of retaliation from trading partners.
The temporary 10% import duty, imposed under Section 122 of the 1974 Trade Act, is justified by the Trump administration as a necessary measure to address international payment issues and to rebalance trade relationships to benefit American workers and industries. However, despite these tariffs, the US trade deficit has recently risen to a new high of approximately $1.2 trillion, which is a 2.1% increase from the previous year.
Trump has been critical of the Supreme Court’s decision to block his previous sweeping tariffs, labeling it “ridiculous” and “anti-American.” In light of the ruling, the President warned he might escalate tariffs on nations that do not comply with US trade expectations. International reactions have varied; the UK has indicated potential reciprocal actions if the US fails to adhere to their tariff agreements, while the EU has postponed ratifying a recent trade deal. The chair of the European Parliament’s delegations for US relations has called for clarity from the US regarding its tariffs. Meanwhile, India has also postponed talks to finalize a trade agreement in light of the current developments.