Washington: Just hours after the U.S. Supreme Court curtailed his use of emergency trade powers, President Donald Trump unveiled a sweeping new tariff plan, ordering a 10 percent duty on goods entering the United States from all countries.
The measure, issued through an executive order, invokes Section 122 of the Trade Act of 1974. Administration officials said the tariff will come into force within three days and may remain in effect for up to 150 days under existing statutory authority unless Congress votes to extend it.
The announcement follows last year’s Supreme Court decision that found Trump had overstepped his authority by imposing broad tariffs without congressional authorization under separate emergency legislation. The ruling significantly narrowed the scope of unilateral trade actions available to the executive branch.
In defending the new order, Trump said the temporary tariff is aimed at shielding American manufacturers and workers from persistent global trade imbalances. He argued that decisive action is needed to counter what he described as unfair trading practices and to bolster domestic production.
Economists, however, cautioned that blanket import duties could drive up prices for businesses and consumers, particularly in sectors reliant on global supply chains. Trade experts also warned the move may prompt retaliatory tariffs from key U.S. partners, raising the prospect of renewed trade friction.
Financial markets reacted with restraint but uncertainty. Major stock indices dipped modestly following the announcement, reflecting investor concern over potential disruptions to trade flows and corporate costs.
Policy analysts note that while Section 122 grants the president short-term authority to address balance-of-payments concerns, sustained tariff regimes typically require legislative backing. The coming weeks are expected to test whether lawmakers will support or challenge the administration’s latest trade maneuver.
The decision underscores Trump’s continued reliance on protectionist tools, even as judicial rulings have reshaped the boundaries of executive power in trade policy.
