Share and Follow
The Trump administration is gearing up to introduce a 15% global tariff, aiming to reinstate duties that were recently nullified by a Supreme Court decision. This move, as explained by Treasury Secretary Scott Bessent, is part of the White House’s broader strategy to reestablish previous tariff levels.
In a discussion with CNBC, Bessent noted that the U.S. expects to see tariff rates return to their former levels by summertime. This comes after the Supreme Court’s ruling last month, which stated that President Trump could not utilize the International Emergency Economic Powers Act to impose tariffs.
Undeterred, President Trump announced his plan to employ a different legislative tool, the Trade Act of 1974, to achieve his tariff goals. Although this act imposes a 150-day limit on such measures, Bessent mentioned that administrative procedures could provide the flexibility needed for the White House to make further adjustments to these rates.
The Wall Street Journal has suggested that a strategic approach might have been for Trump to either delay or forgo implementing new tariffs altogether.
Bessent expressed confidence in the administration’s plan, stating, “I firmly believe that within five months, the tariff rates will return to their previous levels, and we have robust authorities to support this.”
“It’s my strong belief that the tariff rates will be back to their old rate within five months, and those are very fulsome authorities,” he said.
The high court’s ruling was expected to trigger tens of billions of dollars in refunds, but Trump has said government payouts would likely be tied up in the courts for some time.
The Republican president has sought to use tariffs on foreign imports as a way to influence the policies of other nations and correct trade imbalances. Critics, including members of Trump’s own party, say the costs ultimately are passed onto U.S. consumers.
Reuters contributed to this report.