Trump is increasing the tariffs he announced yesterday from 10% to 15%.
He announced on Truth Social:
Based on a thorough, detailed and thorough review of the ridiculous, poorly written and exceptionally anti-American decision issued yesterday by the Supreme Court of the United States of America, after several months of contemplation, on tariffs, please allow this statement to reflect that I, as President of the United States, will, effective immediately, increase 10% worldwide tariffs on countries many of whom have been “smalling” the United States for decades without any retribution (until I came along!). Fully permitted and legally tested, up to 15% level. During the next few months, the Trump Administration will determine and release new and legally acceptable tariffs that will continue our exceptionally successful process of Making America Great Again – More Than Ever!!! Thank you for your attention to this matter. President Donald J. Trump
Now this seems like really rookie time as they had several months to study the possibility that the tariffs would be blocked. This is not 4D chess at all and makes a mockery of anyone trying to plan and run a business.
All that said, it basically takes the power of tariffs away from Trump, or at least the short-term whims with which he likes to negotiate. Now that it’s at 15%, he can’t get angry over a TV ad or something a foreign politician said and impose tariffs on them.
The Section 122 tariff that he is using here is also expiring in 150 days.
Also, contrary to what they said, yesterday’s executive order said the tariffs won’t go into effect until February 24, so there’s a small window here for importers. I think this will reduce imports of some things to some extent, although it may not leave a huge change in the overall data for February.
That executive order also exempts USMCA (which was already largely, though not completely) tariff free. Here is the full text of the exemptions:
(a) Some important minerals;
(b) Metals used in currency and bullion;
(c) energy and energy products;
(d) Natural resources and fertilizers that cannot be grown, mined, or otherwise produced in the United States or cannot be grown, mined, or otherwise produced in sufficient quantities to meet domestic demand;
(e) certain agricultural products, including beef, tomatoes, and oranges;
(f) pharmaceuticals and pharmaceutical ingredients;
(g) certain electronics;
(h) passenger vehicles, certain light trucks, certain medium and heavy duty vehicles, buses, and parts of passenger vehicles, light trucks, medium and heavy duty vehicles and buses;
(i) certain aerospace products;
(j) information materials, donations, and accompanying goods;
(k) All articles and parts of articles become subject to additional import restrictions now imposed or imposed pursuant to section 232 of the Trade Expansion Act of 1962 (19 U.S.C. 1862), as hereafter amended (19 U.S.C. 1862);
(l) Articles which are entered free of duty as goods of Canada or Mexico under the terms of General Note 11 to the Harmonized Tariff Schedule of the United States of America (HTSUS), including any treatment set forth in Subchapter XXIII of Chapter 98 and Subchapter XXII of Chapter 99 of the HTSUS relating to the agreement between the United States, the United Mexican States, and Canada; And
(m) Textile and apparel articles that are entered free of duty as goods from Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras or Nicaragua under the Dominican Republic-Central America Free Trade Agreement.
