WASHINGTON: The White House has announced a fresh 10 per cent import tariff that will apply to goods entering the United States for 150 days. The move follows a US Supreme Court ruling that struck down earlier reciprocal tariffs introduced by President Donald Trump.
The new measure is based on Section 122 of the Trade Act of 1974. It allows the US President to impose temporary import restrictions to deal with what the law calls “fundamental international payment problems”. The tariff will take effect on February 24 at 12:01 am Eastern Standard Time.
Here are five key questions answered.
1. What exactly has been announced?
President Trump has issued a proclamation imposing a 10 per cent “ad valorem” duty on imports into the United States. This means the tariff will be calculated as a percentage of the value of the imported goods.
The duty will remain in place for 150 days.
2. Why is the US government doing this?
In a statement, the administration said the United States faces “a large and serious balance-of-payments deficit”. It argued that the country imports much of what it consumes, sending US dollars overseas and weakening domestic production.
Section 122 is being used to respond to what the White House describes as a “fundamental international payments problem”.
“The United States faces fundamental international payment problems, in particular a large and serious balance-of-payments deficit. As a result of its loss of domestic production, the United States must import much of what it consumes, sending US dollars out of our own economy and overseas.”
3. Which goods are exempt?
Not all imports will face the 10 per cent duty.
The White House said some goods are excluded due to the needs of the US economy or to ensure the tariff better addresses the payment imbalance. These include certain critical minerals, pharmaceuticals and their ingredients, natural resources and fertilisers, energy and energy products, metals used in currency and bullion, some agricultural products, certain electronics, passenger vehicles and other items.
4. How long can the tariff last?
Tariffs imposed under Section 122 automatically expire after 150 days unless Congress votes to extend them.
Trade experts note that even if the measure lapses, a President could reintroduce similar tariffs by declaring a fresh balance-of-payments emergency.
5. Does this require an investigation?
Unlike several other US trade laws, Section 122 does not require a formal investigation before tariffs are imposed. This allows the President to act quickly.
The President has instructed the US Trade Representative to launch a Section 301 investigation into trade practices the administration considers unfair to American businesses.
The administration has indicated that other trade statutes remain under consideration. The Supreme Court ruling, officials argue, addressed a specific legal route, not the broader authority to impose tariffs.
Agencies