President Donald Trump has declared a 15% global tariff on all imports to the United States, effective immediately. This decision comes in the wake of a Supreme Court ruling that deemed much of the existing tariff regime illegal, prompting Trump to move quickly to implement this new measure. In his announcement, Trump detailed that the new tariff would replace a previous plan for a 10% global tariff that he had introduced just the day before.

To legally impose the new tariff, Trump is utilizing a provision known as Section 122 of the Trade Act of 1974, a mechanism that has never before been used for tariffs. This provision allows the President to impose tariffs of up to 15% for a duration of 150 days in response to persistent trade deficits. Experts in trade believe that while the government might succeed in increasing revenue temporarily through this new tariff, the short timeframe could limit the overall impact and effectiveness of such measures.

The announcement has broader implications for international trade, as it signals a potential shift in U.S. trade policy under the Trump administration. The use of Section 122 highlights an aggressive approach to addressing trade balances and could have significant effects on importing countries while sparking discussions around trade relations and economic strategies worldwide. Furthermore, this development may lead to increased tensions in global trade dynamics, especially with nations that are heavily reliant on exporting goods to the U.S.