President Donald Trump’s new global tariffs took effect Tuesday, but at a lower rate than he threatened over the weekend, rather than the 15% tariffs he announced in a social media post on Saturday.
After the Supreme Court ruled last week that Trump had no authority to impose his sweeping “Liberation Day” tariffs under the International Emergency Economic Powers Act (IEEPA), Trump said he’d impose 10% tariffs worldwide. He later raised that to 15%.
Confusion continues
The lower rate comes amid pushback from the European Union, which has expressed concerns over the back-and-forth. The European Commission even voted during an emergency meeting Monday to delay ratifying the EU’s trade deal with the U.S.
Experts say the latest rate change is doing nothing to inspire confidence.
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Analysts say the emergency tariffs rejected by the Supreme Court have brought in as much as $175 billion.
“While a new 10% tariff rate, instead of the threatened 15%, will provide some relief it shows how difficult it is for businesses to plan ahead,” William Bain, the head of trade policy at the British Chambers of Commerce, told The Guardian.
On top of that, a Trump administration official told the Financial Times the White House is still planning to raise the worldwide rate to 15%.
“It is being worked on and will come later,” the unnamed official reportedly said, but did not specify a timeline.
Adding to the confusion, the new tariffs can only be in place for 150 days, unless Congress approves an extension.
President Trump took to social media Monday night to threaten “any country that wants to ‘play games’ with the ridiculous supreme court decision,” saying they face “a much higher tariff.”
Democrats respond
Democratic lawmakers are now calling for the federal government to refund billions of dollars collected by the tariffs that the Supreme Court now says are illegal.
With the support of Minority Leader Chuck Schumer, Senate Democrats Ron Wyden, Ed Markey and Jeanne Shaheen introduced a bill Monday that would force the Trump administration to issue refunds to those impacted by the tariffs the Supreme Court now says were illegal.
It would require Customs and Border Protection (CBP) to prioritize small businesses for refunds first. CBP would also have to update Congress every 30 days until all refunds have been fully repaid.
House Democrats have also put together a bill that would force the government to issue refunds.
In a motion filed in trade court last November, the Trump administration said it would comply with orders to provide refunds if the tariffs were found to be unlawful.
This story is featured in today’s Unbiased Updates. Watch the full episode here.
FedEx sues for refund
FedEx has filed a lawsuit against the Trump administration requesting a “full refund” of all tariffs it paid under the IEEPA, though it did not specify a dollar amount.
Experts say other major companies are expected to do the same. Dozens of companies had already filed lawsuits over the tariffs before the Supreme Court’s ruling.
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