The United States imposed a new tariff of 10 percent on imports not covered by exemptions starting Tuesday, according to a statement from the US Customs and Border Protection (CBP). This rate, initially announced by President Donald Trump last Friday, marks a deviation from the 15 percent tariff he suggested the following day.
The introduction of the lower tariff follows a recent US Supreme Court ruling that invalidated previous tariffs deemed unconstitutional. In response, Trump announced a temporary global tariff of 10 percent, later hinting at a possible increase to 15 percent. In a notice, CBP clarified that, aside from exempted products, imports would now incur an “additional ad valorem rate of 10 percent.”
This announcement has generated confusion regarding US trade policy, particularly as no clear explanation was provided for the reduced rate. The Financial Times reported that a White House official suggested a potential increase to 15 percent may occur in the future, although Reuters has yet to confirm this information.
Analysts at Deutsche Bank noted the significance of Trump’s upcoming State of the Union address, stating that it could provide further insights into the administration’s next steps concerning tariffs. The uncertainty surrounding trade policies contributed to a slight decline in European markets on Tuesday, with the pan-European STOXX 600 index dropping by 0.1 percent by 09:15 GMT.
The new tariffs took effect at midnight, leading to the suspension of tariffs previously annulled by the Supreme Court, which ranged from 10 percent to as high as 50 percent. Questions remain regarding refunds for businesses that have paid tariffs under the now-invalidated regime.
Under Section 122 of US trade law, the president has the authority to impose such duties for up to 150 days to address significant balance-of-payments deficits and related international payments issues. Trump asserted that a serious balance-of-payments deficit exists, citing an annual US goods trade deficit of $1.2 trillion and a current account deficit of 4 percent of GDP.
On Monday, Trump cautioned nations against reneging on previously negotiated trade agreements with the US, threatening to impose much higher tariffs under different legislation. Japan has reportedly requested that the US ensure its treatment under the new tariff regime remains as favorable as that in existing agreements. Similarly, the European Union, Britain, and Taiwan expressed their desire to uphold their trade deals.
In a statement on Tuesday, China urged the US to abandon its “unilateral tariffs,” indicating its willingness to engage in further trade negotiations with the US, the world’s largest economy.
