President Donald Trump has decided to increase the global tariff rate by an additional five percent after facing a defeat in the U.S. Supreme Court. The initial ten percent tariff was struck down by the court, prompting Trump to raise it to 15 percent under Section 122 of the U.S. Trade Act. The exemptions for goods compliant with the Canada-United States-Mexico Agreement (CUSMA) still stand.
Trump announced the tariff increase on his social media platform, Truth Social, stating that the decision followed a thorough review of the court ruling. According to Section 122, temporary tariffs up to 15 percent can be imposed for 150 days unless Congress approves an extension.
While the latest tariff change is not expected to impact Canada significantly, the White House confirmed that CUSMA-compliant goods are exempt. However, sectoral tariffs on Canadian steel, aluminum, copper, automotive parts, lumber, and wood products remain in effect under Section 232 of the U.S. Trade Expansion Act.
U.S. Treasury Secretary Scott Bessent mentioned on CNN that the new global tariff is likely a temporary measure while studies on Section 232 and Section 301 tariffs are conducted. He suggested that the 122 tariffs may disappear after the five-month period.
The Supreme Court’s ruling only addressed the IEEPA tariffs, not the Section 232 tariffs. The administration continues to navigate the implications of the court decision and the ongoing trade policies.