:max_bytes(150000):strip_icc()/GettyImages-2262158140-ac7a0764e80a432fb6c1ec7686fc8506.jpg "Trump’s ‘Plan B’ On Tariffs Is Taking Form: It is Extra Tariffs")
Key Takeaways
- President Donald Trump mentioned he’s imposing new tariffs to interchange those the Supreme Court docket struck down Friday, beginning with a 15% international tariff.
- Tariffs on particular nations and merchandise would require his administration to hold out investigations.
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When the Supreme Court docket struck down the vast majority of President Donald Trump’s tariffs Friday, he misplaced little time revealing his backup plan: imposing extra tariffs beneath completely different authorized mechanisms from the one the excessive court docket dominated towards.
The brand new tariff regime will start with a worldwide 15% tariff on all nations, Trump mentioned in a social media submit Saturday, up from a ten% hike introduced Friday. The brand new import tax is just like the ten% baseline reciprocal tariff he imposed on Liberation Day in April. Nevertheless, it would not depend on powers granted by the Worldwide Emergency Financial Powers Act, which the court docket dominated didn’t permit the president to impose tariffs.
Trump mentioned Friday he was utilizing Part 122 of the Commerce Growth Act, which provides the president authority to impose tariffs to deal with commerce imbalances for as much as 150 days.
As well as, he mentioned his administration was beginning Part 301 investigations towards a number of different nations. That provision permits the White Home to impose tariffs in retaliation for unfair commerce practices, however solely after finishing an investigation.
What This Means For The Economic system
The Supreme Court docket’s ruling and Trump’s vow to impose extra tariffs introduce a recent dose of uncertainty into an financial system the place it was already tough for companies to foretell commerce coverage.
Trump’s swift tariff motion signaled his willpower to proceed utilizing his most well-liked financial and international coverage software. Nevertheless it additionally highlighted the constraints of his remaining tariff powers, since he can now not use IEEPA.
Investigations beneath Part 301 can take months to finish. That is in distinction to Trump’s freewheeling use of emergency tariff powers. Over the previous yr, Trump has incessantly introduced after which modified tariffs on social media posts and likewise used threats of tariffs as a negotiating software.
“The administration retains the power to re‑impose tariffs, however nothing grants the President the identical broad energy with quick impact as IEEPA would have,” economists at Wells Fargo Securities mentioned in a commentary.
The quick results of the ruling is to decrease the efficient tariff price paid by Individuals. Wells Fargo estimated the general tariff price fell to 13% Friday from 16% earlier than the motion. Trump mentioned he intends to boost tariffs again to their former degree, if not greater.
“We’ve got alternate options,” Trump mentioned in a press convention Friday. “Nice alternate options. Might be more cash. We’ll absorb more cash, and we’ll be lots stronger for it.”
UPDATE—Feb. 21, 2026: This text has been up to date because it was first printed to mirror newer developments.
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