Trump's 'Plan B' On Tariffs Is Taking Shape: It's More Tariffs

Core Insights - The Supreme Court's ruling against President Trump's tariffs has prompted him to announce a new global 10% tariff on all countries, utilizing different legal mechanisms [1][2][4] - The new tariff will be implemented under Section 122 of the Trade Expansion Act, allowing tariffs to address trade imbalances for up to 150 days, and Section 301 investigations will be initiated against several countries for unfair trade practices [3][7] - The ruling has resulted in a decrease in the effective tariff rate for Americans, dropping from 16% to 13%, with Trump indicating intentions to raise tariffs back to previous levels or higher [6][7] Economic Implications - The introduction of new tariffs adds uncertainty to an already unpredictable trade policy environment, highlighting the limitations of Trump's remaining tariff powers following the Supreme Court's decision [4][5] - Investigations under Section 301 may take months to complete, contrasting with Trump's previous rapid tariff announcements and adjustments, which were often communicated via social media [5] - Economists have noted that while the administration can reimpose tariffs, the immediate power to do so is not as broad as it was under the International Emergency Economic Powers Act (IEEPA) [5]