President Donald Trump announced plans to impose a 10 percent global tariff to replace emergency duties invalidated by the U.S. Supreme Court.
The tariffs are slated to last for a maximum of 150 days, or approximately five months.
Trump made the announcement on Friday, February 20, and similarly expressed his disappointment with the Supreme Court’s decision to overturn the previously established tariffs.
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Trump called the Supreme Court’s ruling “very disappointing” and subsequently announced the new 10 percent tariff on global imports.
The move is based on Section 122 of the Trade Act of 1974 and initiates a new investigation under Section 301.
According to Reuters, Section 122 of the U.S. Trade Act grants the President the authority to impose duties of up to 15 percent for as long as 150 days. The imposition of these tariffs applies to all countries involved in significant and serious balance of payments issues.
The section does not require an investigation or impose other procedural limitations.
Section 301, meanwhile, allows for tariffs in response to unfair foreign trade practices, such as intellectual property theft or forced technology transfer.
Tariffs imposed under Section 301 require an investigation that can take months or even years to complete.
Previously, Trump utilized Section 301 during his first term to impose tariffs ranging from 7.5 percent to 25 percent on approximately $370 billion worth of U.S. Imports from China.
Those duties remained in effect throughout the four-year administration of President Joe Biden.
U.S. Trade Representative Jamieson Greer stated on Friday, February 20, that tariffs imposed under Section 301 have proven durable when challenged in court.
