On Friday, US President Donald Trump announced his intention to sign an order imposing a 10% global tariff on trade partners, which will be applicable in addition to already existing tariffs. Trump made this announcement following a ruling by the US Supreme Court, which determined that he overstepped his authority when imposing a series of tariffs that disrupted global trade. This new tariff is part of his broader strategy to address trade imbalances and protect US economic interests.

The tariff will be enacted under Section 122 of the Trade Act of 1974, granting the President the ability to establish temporary trading measures to tackle payment balance issues. While this decision sends a clear signal to trade partners about the US’s strong stance on tariffs, it raises concerns about potential retaliatory measures that could further escalate trade tensions between the US and its trading partners.

Moreover, this announcement comes on the heels of a Supreme Court ruling which upheld lower court findings that tariffs imposed by Trump under the International Emergency Economic Powers Act of 1977 were deemed illegal. Although this court verdict does not affect the sector-specific tariffs already placed on imports of steel, aluminum, and various other goods, it highlights ongoing legal challenges surrounding Trump's trade policies and raises questions about the sustainability of such measures in the face of judicial scrutiny.