Brace for a new 10% tariff. President Trump is hitting back at a Supreme Court ruling invalidating his earlier tariffs by imposing new ones using different US laws.
“Today, I will sign an order to impose a 10% global tariff under Section 122, over and above our normal tariffs already being charged,” Trump said in a press conference on Friday.
The White House is also preparing other tariffs that, when taken together, could be “potentially higher” than the current duties in place, Trump said.
In the short term, Trump plans on issuing the new 10% global tariff using Section 122 of the Trade Act of 1974, which gives the president the authority to impose an up to 15% tariff, but only for 150 days. Extending the tariffs for any longer requires Congress’s approval. The upcoming global tariff seems designed to replace an older, now invalidated 20% tariff on Chinese goods. Earlier this month, the White House also agreed to reduce a 25% reciprocal tariff on India down to 18%. But that too has been ruled illegal.
During the 150-day period, Trump indicated he’ll prepare other tariffs over the longer-term using two other statutes, Section 301 of the Trade Act, and Section 232 of the Trade Expansion Act of 1962. A president can also impose tariffs under both authorities, but doing so requires the US Trade Representative and the Commerce Department to initiate an investigation, which includes a public comment period. During Trump’s first term, the White House used Section 301 to impose duties on Chinese imports, including some PC parts.
“Effective immediately, all national security tariffs under Section 232 and existing Section 301 tariffs—they’re existing, they’re there—remain in place, fully in place. And in full force and effect,” Trump added in the press conference.
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The Supreme Court’s ruling focused on Trump’s use of the 1977 International Emergency Economic Powers Act (IEEPA) to quickly impose a wave of tariffs last year. In Friday’s 6-3 ruling, the court found the White House went too far in interpreting the law, which contains no explicit mention of the president’s authority to impose tariffs.
Trump slammed the Supreme Court’s decision as “terrible” as he unveiled his revised tariff strategy. “We’re using things [Section 301, Section 232] that some people thought we should have used in the first place. But it’s more complicated. It’s a little more complicated, the process takes a little more time. But the end result is going to get us more money,” he said.
During the press conference, Trump also signaled he might impose even higher tariffs on certain countries. We’ll have to wait for the specifics to see whether the new policy affects consumer electronics. The administration previously exempted many Chinese-made products, including phones, computers, and chips from Trump’s larger reciprocal tariffs. But the duties have ensnared video game consoles; Sony and Microsoft both increased pricing for the PS5 and Xbox last year.
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The Trump administration was also considering reactivating a 25% tariff on graphics cards and other PC parts using Section 301, but decided to delay it for another year after reaching a trade deal with China.
In the meantime, the Supreme Court’s ruling is opening up the prospect that the White House will need to refund up to $175 billion to the businesses that paid tariffs in the last year. Over 1,000 businesses have reportedly already filed lawsuits to recoup their funds. Apple has also paid a huge tariff bill at an estimated $3.3 billion since the company shifted US iPhone production to India, which previously faced a 25% reciprocal tariff rate.
In his press conference, Trump blasted the Supreme Court for refraining from ruling on the refund question. “I guess it has to get litigated for the next two years,” he added.
About Our Expert
Michael Kan
Senior Reporter
Experience
I’ve been a journalist for over 15 years. I got my start as a schools and cities reporter in Kansas City and joined PCMag in 2017, where I cover satellite internet services, cybersecurity, PC hardware, and more. I’m currently based in San Francisco, but previously spent over five years in China, covering the country’s technology sector.
Since 2020, I’ve covered the launch and explosive growth of SpaceX’s Starlink satellite internet service, writing 600+ stories on availability and feature launches, but also the regulatory battles over the expansion of satellite constellations, fights with rival providers like AST SpaceMobile and Amazon, and the effort to expand into satellite-based mobile service. I’ve combed through FCC filings for the latest news and driven to remote corners of California to test Starlink’s cellular service.
I also cover cyber threats, from ransomware gangs to the emergence of AI-based malware. Earlier this year, the FTC forced Avast to pay consumers $16.5 million for secretly harvesting and selling their personal information to third-party clients, as revealed in my joint investigation with Motherboard.
I also cover the PC graphics card market. Pandemic-era shortages led me to camp out in front of a Best Buy to get an RTX 3000. I’m now following how President Trump’s tariffs will affect the industry. I’m always eager to learn more, so please jump in the comments with feedback and send me tips.
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