U.S. President Donald Trump on the 20th signed to impose a 10% "global tariff" on every country in the world, in response to the Supreme Court's ruling striking down country-by-country reciprocal tariff measures.
Trump said on the social media platform Truth Social, "Just signed in the Oval Office (the White House office) a global 10% tariff on every country in the world," adding that the tariff "will take effect almost immediately."
The global tariff Trump signed this time replaces the 10% base tariff (included as part of the reciprocal tariff) that can no longer be collected due to the Supreme Court ruling that imposing a reciprocal tariff under the International Emergency Economic Powers Act (IEEPA) is unlawful.
The signing is based on Section 122 of the Trade Act. Enacted in 1974, the provision allows the president to impose tariffs of up to 15% for up to 150 days if the external economic situation, such as deterioration in the U.S. trade balance, is deemed urgent.
However, unlike tariffs based on the IEEPA, Section 122 tariffs have limited impact. After 150 days, they require congressional approval. With midterm elections ahead, it is expected to be difficult to secure Congress' consent for tariffs that stoke inflation.
Right after the Supreme Court ruling, Trump said at a White House press briefing that the global tariff "seems likely to take effect in three days," and that at the same time he would launch a tariff investigation under Section 301 of the Trade Act. Under Section 301, tariffs can be imposed in response to unfair, unreasonable, or discriminatory actions by foreign governments.
Earlier the same day, the U.S. Supreme Court ruled that Trump's reciprocal tariff and "fentanyl tariffs" on the United States, Canada, China and others under the IEEPA were unlawful. As a result, the Trump administration can no longer collect the reciprocal tariff, which had been imposed with differentiated rates by country.
In Korea's case, under a tariff agreement with the United States, the reciprocal tariff initially set at 25% was reduced to 15% starting in November last year. But on the 26th of last month, Trump threatened to raise the reciprocal tariff back to 25%, along with auto tariffs, saying the National Assembly's handling of the special bill on investment in the United States was being delayed.
Trump's pressure to raise tariffs on Korea involves auto tariffs—the top Korean export item to the United States—along with the reciprocal tariff. For that reason, even if the reciprocal tariff is invalidated, not all of Trump's references to higher tariffs on Korea would lose effect.