Trump’s new 10% tariffs go into effect

New US customs tariffs on imported goods went into effect today, as President Donald Trump seeks to reformulate his trade agenda after the Supreme Court ruled against a wide range of global customs duties that he imposed.

These new duties, for which an executive order was issued on Friday, aim to replace the current arbitrary tariffs, in addition to those stipulated in various trade agreements signed with most of the United States’ major trading partners.

However, these duties do not replace so-called sector duties of between 10% and 50% on a number of industries, such as copper, automobiles and timber, which were not affected by the Supreme Court decision.

It also does not apply to Canadian and Mexican products imported into the United States under the North American Free Trade Agreement (USMCA).

Customs officials announced that the collection of customs duties that were canceled by the Supreme Court will stop as of midnight, Monday, Tuesday, Washington time (05:00 Tuesday morning, GMT), the date the new additional tax takes effect.

They also confirmed that they will begin collecting the new customs duties of 10% immediately.

For this new ratio, the US President relied on a law issued in 1974 that allows him to restore the trade balance between the United States and its economic partners when it is proven that there is a significant imbalance in the balance of payments.

These tariffs are expected to reduce the average effective customs duty rate applied to goods imported into the United States to 13.7%, compared to 16% before the Supreme Court’s decision, according to the Budget Lab of Yale University.
After 150 days, the government will need a vote from Congress if it wants to keep these fees in place indefinitely.

Donald Trump announced on Saturday his intention to raise customs duties to 15%, justifying his decision as being based on a “comprehensive review” of the Supreme Court’s ruling, which he again described as “ridiculous” and “completely contrary to American values.”

However, Trump has not yet issued an executive order in this regard.