U.S Treasury Secretary Scott Bessent told CNBC on Wednesday that President Donald J. Trump's threatened 15% global tariff may be implemented this week.
After the Supreme Court struck down Trump's reciprocal tariffs enacted under the International Emergency Economic Powers Act, the president came back with a 10% global tariff that took effect Feb. 24. In making the order, the White House says the country "can stem the outflow of its dollars to foreign producers and incentivize the return of domestic production."
Unlike the IEEPA tariffs, the 10% tariffs were invoked under section 122 of the Trade Act of 1974. Using that statute, the tariff can only last up to 150 days without Congressional authority.
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On Feb. 22, Trump said he would increase the 10% tariff to a 15% tariff in a Truth Social post. However, a new executive order proclaiming the 15% tariff hasn't been issued.
Bessent also predicted U.S. tariff rates would return to where they stood before the Supreme Court's announcement by August.
Some goods are exempt from the 10% duty, including:
- Certain critical minerals, metals used in currency and bullion, energy and energy products.
- Natural resources and fertilizers that cannot be grown, mined or otherwise produced in the U.S. or produced in sufficient quantities to meet domestic demand.
- Certain agricultural products, including beef, tomatoes and oranges.
- Pharmaceuticals and pharmaceutical ingredients.
- Certain electronics.
- Passenger vehicles, certain light trucks, certain medium- and heavy-duty vehicles, buses and certain parts of the above vehicles.
- Certain aerospace products.
- Informational materials such as books, donations and accompanied baggage.
- Any articles or parts of articles subject to section 232 tariffs.
- USMCA-compliant goods from Canada and Mexico.
- Textiles and apparel goods that enter duty-free under the Dominican Republic-Central America Free Trade Agreement.
