Trump bumps up global tariffs - creating more mess and uncertainty for the world

• The Supreme Court deemed Trump's prior tariff system unconstitutional, ruling that the tariffs exceeded presidential powers granted by Congress under a 1977 law for national emergencies
• The new 15% global tariff uses Section 122 of the Trade Act of 1974, which has a 150-day limit, forcing the administration to seek alternative legal mechanisms
• Exemptions exist for agricultural products, steel, and cars, but governments worldwide are seeking clarity amid confusion and uncertainty about implementation

Trump Escalates Global Tariff Strategy Amid Legal Setbacks

President Donald Trump increased worldwide tariffs on imported goods to 15% on Saturday, just one day after announcing a 10% rate on Friday. The rapid escalation follows a critical Supreme Court ruling that declared his previous tariff methods unconstitutional.

Key Developments:

The Supreme Court ruled 6-3 on Friday that Trump's tariff implementation exceeded presidential powers granted under a 1977 law governing commerce regulation during national emergencies. The decision deemed his "Liberation Day" tariffs from last April illegal, though the Court did not address whether collected tariffs must be repaid.

New Tariff Framework:

In response, Trump invoked Section 122 of the Trade Act of 1974 to impose the new tariffs, which can only remain in effect for 150 days. Trump announced via Truth Social that his administration will seek additional mechanisms to levy duties beyond this temporary period.

Exemptions and Uncertainty:

Certain sectors including agricultural products, steel, and automobiles are reportedly exempt, though governments worldwide are seeking clarification on specific details.

Market Implications:

The developments create significant global economic uncertainty, as Trump's tariff authority has been central to his foreign policy leverage. The temporary nature of the new tariffs (150-day limit) and the scramble to find alternative legal frameworks introduce substantial volatility for international trade. Governments and businesses face confusion over exemption details and the durability of any tariff regime.

The situation represents a major setback to Trump's trade policy architecture, forcing a hasty restructuring that may prove legally vulnerable or time-limited, complicating long-term business planning and international trade relationships.