ibn sultan
Brisbane, Feb 22: Donald Trump has announced that the United States will raise baseline tariffs on imports from all countries to 15 percent, following a major ruling by the Supreme Court of the United States.
The decision comes after the court ruled that Trump did not have the authority to impose sweeping “reciprocal tariffs” under the International Emergency Economic Powers Act (IEEPA).
Court Blocks Emergency Tariffs
Last year, the Trump administration introduced broad global tariffs using emergency powers under IEEPA. However, the Supreme Court ruled that the law does not authorize the president to impose such wide-ranging trade measures.
Reacting to the ruling, Trump criticized the justices who voted against his move. He said he had used emergency powers to “make things simple” but indicated he would explore alternative legal routes to continue his trade agenda.
New 15% Tariff Policy
The new 15% baseline tariff replaces the earlier 10% rate and will:
Apply to imports from all countries
Remain in place for up to 150 days
Impact certain Australian exports
The White House has stated that some categories — including beef, critical minerals, energy products, and pharmaceuticals — will remain exempt.
Alternative Legal Routes Under Review
The administration is now considering other trade laws, including:
Section 301 of the Trade Act of 1974
This provision allows tariffs on countries that violate US trade rights or engage in unfair trade practices. However, it requires formal investigations and consultations, which can take months or even years.
Section 232 of the Trade Expansion Act of 1962
Previously used in 2018 to impose tariffs on steel and aluminum, this law allows tariffs based on national security concerns. It applies to specific sectors and cannot be used for sweeping global tariffs.
Refunds Could Reach $175 Billion
The court’s ruling means tariffs collected under IEEPA were unlawful. If refunds are ordered, the US government may have to repay up to $175 billion.
Several major companies had already filed lawsuits seeking refunds. Legal experts say the repayment process could take years and involve further court proceedings.
Impact on Australia
Australia had previously faced a 10% tariff rate but will now be subject to the 15% baseline — aligning it with other nations.
Although Australian exporters do not directly pay US tariffs, the higher import costs could reduce competitiveness in the American market.
Ongoing Uncertainty
While Trump said the move restores “certainty” to the United States and global markets, trade analysts believe uncertainty remains high as legal and political battles over tariffs continue.
