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The president has unveiled a new global tariff initiative following the Supreme Court’s rejection of his initial tariff strategy.
WASHINGTON — On Friday, President Donald Trump revealed a plan to implement a 10% global tariff soon after the Supreme Court invalidated his earlier comprehensive tariff proposal.
During a press conference, Trump expressed his intention to enact the new tariffs through an executive order, criticizing the six justices who opposed his plan as a “disgrace to the nation.” The tariffs, authorized under Section 122 of federal law, would initially be in effect for 150 days unless Congress chooses to extend them.
Additionally, the Trump administration is considering imposing further tariffs using alternative measures, such as Section 232, which necessitates an investigation by the Commerce Department.
Previously, Trump cautioned that if the Supreme Court overturned the tariffs, it would be catastrophic for the nation, predicting it would “literally destroy the United States of America.” However, when addressing questions about the court’s decision on Friday, he consistently maintained an optimistic outlook for the country, downplaying any potential negative impacts.
He said the ruling gave “certainty” and said “I think you’re going to see the country get much stronger because of it.”
What are tariffs?
By definition, a tariff is a tax on imports. They are typically charged as a percentage of the price a buyer pays a foreign seller. In the United States, tariffs are collected by Customs and Border Protection agents at 328 ports of entry across the country.
American companies, not foreign countires, pay tariffs put in place by the federal government, and the money goes to U.S. Treasury. Those companies, in turn, typically pass their higher costs on to their customers in the form of higher prices. That’s why economists say consumers usually end up footing the bill for tariffs.
Still, tariffs can hurt foreign countries by making their products pricier and harder to sell abroad. Yang Zhou, an economist at Shanghai’s Fudan University, concluded in a study that Trump’s tariffs on Chinese goods inflicted more than three times as much damage to the Chinese economy as they did to the U.S. economy
Will you have to pay more for goods because of tariffs?
Trump has argued that tariffs will protect U.S. industries from unfair foreign competition and raise money for the federal government. But since so much of what we buy today relies on a global supply chain, steeper tariffs mean you’ll likely see higher prices from the grocery aisle to your next car repair.
“It is going to affect everything in the economy,” said Josh Stillwagon, an associate professor of economics and chair of the Economics Division at Babson College. “There’s this immediate price increase that’s going to be passed on to consumers here, basically as soon as the retailers have to buy new product.”
Experts warn that these tariffs could escalate inequities. Low-income families in particular will feel the costs of key necessities, like food and energy, rise with fewer savings to draw on — significantly straining budgets.
Low-income households often “spend a larger share of their income on essential goods — whether it’s food or other basic products … (like) soap or toothpaste,” said Gustavo Flores-Macías, a professor of government and public policy at Cornell University whose research focuses on economic development. Because of this, he said, “even relatively small price increases” will have disproportionate impacts.
Evidence of that disparity will only mount for big-ticket items. Dipanjan Chatterjee, vice president and principal analyst at Forrester, points to now-imposed auto tariffs, explaining that projected price hikes of thousands of dollars for a new imported car will be easier for those with larger salaries to absorb.
Tariffs aren’t popular with the public
The White House’s plans to use alternative laws to preserve its tariffs will likely prolong the debate and keep alive an issue that is largely unpopular with voters.
About 6 in 10 Americans said Trump had gone too far on imposing new tariffs on other countries, according to an AP-NORC poll from January.
Even more worrisome for a president elected on the promise of fixing Americans’ concerns about affordability, 76% said in a poll conducted last April that Trump’s tariff policies would increase the cost of consumer goods in the U.S.
The Associated Press contributed to this article.