#TrumpAnnouncesNewTariffs

President Trump has announced a new tariff plan following a Supreme Court ruling against his previous policy. Here are the key details:

· New Tariffs: A temporary 10% global tariff took effect on February 24, with plans to increase it to 15% .
· Legal Basis: The new tariffs are imposed under Section 122 of the Trade Act of 1974, not the IEEPA law rejected by the Supreme Court .
· Duration: These tariffs are limited to 150 days unless extended by Congress .
· Key Rationale: Trump insists existing trade deals remain, warning that trying to "back out" could lead to even higher tariffs .

The Supreme Court Setback

The new policy is a direct response to a legal defeat. On February 20, the Supreme Court ruled 6-3 that Trump exceeded his authority by using the 1977 International Emergency Economic Powers Act (IEEPA) to justify previous sweeping tariffs . Trump called the ruling "very unfortunate" during his State of the Union address .

Global and Market Reactions

The announcement has created uncertainty and mixed reactions:

· International Response: The EU has paused ratification of a trade agreement, fearing the new tariffs violate its terms . Japan is seeking assurances its deal will be honored , while Indonesia is negotiating to keep agreed-upon exemptions .
· Market Impact: Despite the confusion, US markets rose after the address. The S&P 500 gained 0.8% and the Nasdaq rose 1.1% .
· Political Pressure: A group of 22 Democratic senators has proposed a bill to refund tariffs (over $175 billion collected) to businesses, prioritizing small companies .