United States (US) President Donald Trump has announced a new hike in the US global tariff rate.
Trump has said he will raise a temporary tariff from 10 per cent to 15 per cent on US imports from all countries.
In a Truth Social post, he said, “I, as President of the United States of America, will be, effective immediately, raising the 10 per cent Worldwide Tariff on Countries, many of which have been ‘ripping’ the US off for decades, without retribution (until I came along!), to the fully allowed, and legally tested, 15 per cent level.”
It is pertinent to mention that the new tariffs are based on a separate law, Section 122, which allows rates of up to 15 per cent but requires Congress’s approval if they are to continue beyond 150 days.
Trump says tariffs increase the amount of tax raised by the government, encourage consumers to buy American-made goods, and boost investment in the US.
He wants to reduce the US trade deficit – the gap between the value of goods it buys from other countries and those it sells to them.
The president argues that the US has been exploited by “cheaters” and “pillaged” by foreigners.
Earlier, in a 6-3 ruling, the US Supreme Court said Trump exceeded his authority when imposing sweeping tariffs using a law reserved for a national emergency.
