President Donald Trump revealed that he will sign an executive order to impose a global tariff of 10% on imports. This decision comes on the heels of the U.S. Supreme Court's ruling that invalidated much of the tariffs he had previously established, citing the use of emergency powers as illegal. During a press briefing at the White House, Trump stated that the Supreme Court did not entirely annul the tariffs, but rather a specific application of them under the International Emergency Economic Powers Act (IEEPA). He hinted at a shift in strategy, mentioning that he would pursue a different legal route which he believes should have been his initial approach.

To implement the new tariff, Trump indicated he would utilize Section 122 of the Trade Act of 1974, which allows unilateral authority to impose base tariffs of up to 15%. He claims that this clause, although not frequently used, provides the necessary legal backing for his new tariff initiative. However, he also acknowledged that such provisions typically only last for 150 days, which could complicate long-term tariff strategies. The potential impact of these tariffs on international trade relations is significant, especially given the current global economic climate and ongoing supply chain challenges.

The announcement reflects Trump's ongoing contentious relationship with global trade norms and his administration's strategy to leverage tariffs as a negotiating tool. As this new executive order is set to unfold, its implications on trade with key partners could escalate tensions, provoke retaliatory actions, and exacerbate economic uncertainties. Observers will be closely watching how this change in legal strategy influences both domestic and international perceptions of U.S. trade policy under Trump's administration.