On Friday evening, President Donald Trump announced the signing of an executive order that implements a new 10% “global tariff.” This development follows the Supreme Court’s decision to invalidate his extensive “reciprocal” import duties, marking a significant setback for his trade policy. The “Section 122” tariffs are set to be implemented “almost immediately,” as stated by Trump in a post on Truth Social. The levies remain in place subsequent to the high court’s ruling, which nullified the tariffs that Trump had enacted under the International Emergency Economic Powers Act, or IEEPA. During a briefing at the White House on Friday afternoon, Trump expressed his discontent with the “deeply disappointing” 6-3 ruling. “I’m ashamed of certain members of the court, absolutely ashamed for not having the courage to do what’s right for our country,” Trump stated. The ruling invalidated the legal foundation for numerous tariffs that Trump maintains are crucial for the U.S. economy and for revitalizing America’s diminishing manufacturing sector. Trump’s reciprocal tariffs and his drug-trafficking-related duties were both based on his administration’s broad interpretation of IEEPA.

However, the majority of the court determined on Friday that IEEPA “does not authorize the President to impose tariffs.” A White House official informed on Friday that the newly implemented 10% global tariffs, which are subject to a 150-day time frame, will serve as a replacement for the IEEPA duties. Such a development may result in reduced U.S. tariff rates for certain countries that either established trade agreements with the Trump administration or were engaged in ongoing trade negotiations. Many of those countries and regions encountered U.S. tariffs exceeding 10% as a component of those agreements. The European Union, for instance, consented to a 15% tariff as a component of its trade agreement with the U.S. Tariffs were primarily enacted under IEEPA, which rendered them invalid following the Supreme Court’s ruling. The shake-up could be substantial for China, which is contending with two rounds of 10% IEEPA-based U.S. tariffs alongside a 25% duty that continues to be in place. The IEEPA tariffs will be supplanted by the new global tariff introduced by Trump, resulting in a cumulative rate of 35% for China, as stated by a White House official.

Trump expressed a firm commitment to exploring alternative methods for implementing tariffs independent of Congressional approval. The White House official indicated that as the administration navigates further legal tariff avenues, the rates applied to specific countries could revert to their elevated levels. During the briefing on Friday, when questioned about his reluctance to collaborate with the legislative branch, Trump responded, “I don’t have to.” I possess the authority to impose tariffs. Trump’s comments oscillated between a posture of defiance and sharp criticism. He even targeted Justices Neil Gorsuch and Amy Coney Barrett, whom he nominated, following their alignment with the majority in the vote. “I believe their decision was misguided,” Trump stated. “It is, in my view, a source of embarrassment for their families, if one seeks to ascertain the truth.” The two individuals involved. The recent tariff order references Section 122 of the Trade Act of 1974. Tariffs established under that statute are limited to a duration of 150 days, with any prolongation necessitating congressional consent.

During the briefing, when questioned about the time limit and the necessity of obtaining congressional approval, Trump stated, “We have the right to do pretty much what we want to do.” Trump also stated that all tariffs currently in place under statutes referred to as Section 232 and Section 301 will continue to be “in full force and effect.” The Trump administration is utilizing Section 301 to initiate multiple investigations into potential unfair trade practices, which may lead to the imposition of new tariffs, according to Trump. The majority of tariff revenue collected in the United States last year was derived from IEEPA duties. “Other alternatives will now be used to replace the ones that the court incorrectly rejected,” Trump stated on Friday. “We will generate increased revenue, and this will significantly enhance our strength,” he stated. Treasury Secretary Scott Bessent, addressing the Economic Club of Dallas shortly after Trump, indicated that the administration intends to substitute the dismissed IEEPA tariffs by utilizing several other pre-existing tariff statutes. Bessent stated that this action “will result in virtually unchanged tariff revenue in 2026.” “It is unreasonable to anticipate a decline in tariff revenue.”