Washington, Feb. 24 (SANA) New U.S. tariffs ordered by President Donald Trump have taken effect, signaling a renewed shift toward protectionist trade policies and raising concerns about broader global economic disruption.
The measures impose a 10% duty on imported goods effective at midnight Tuesday under the 1974 Trade Act, which allows exceptional action to address balance-of-payments issues. The move follows a recent Supreme Court ruling that struck down a broad range of Trump-era tariffs imposed under emergency economic powers, affecting an estimated $130 billion in trade.
Scope and impact
The new tariffs exclude existing sector-specific duties ranging from 10% to 50% on industries such as automobiles, copper, and lumber. They also do not apply to imports from Canada and Mexico under current North American trade arrangements.
Yale University’s Budget Lab estimates the changes will lift the average effective tariff rate to 13.7%, slightly below the pre-ruling level of 16%. The tariffs are temporary unless Congress approves an extension within 150 days.
Markets react
Trump warned trading partners against “manipulating” trade arrangements or exploiting the court ruling, threatening higher duties or new “licensing fees.”
U.S. markets fell sharply following the announcement. The Dow Jones Industrial Average dropped 1.34%, while the S&P 500 and Nasdaq each slipped about 0.65% amid rising uncertainty.
Global concerns
European allies expressed alarm, with Germany requesting urgent clarification on how the tariffs will be implemented. The European Union, which runs a $236 billion goods trade surplus with the United States, faces renewed debate over Washington’s justification for the move. The European Parliament has postponed a vote on a trade agreement with the United States, reflecting growing transatlantic tension.
Asian markets showed mixed reactions. China’s CSI 300 rose 1.3%, and the yuan reached a three-year high, buoyed by expectations of tariff restructuring.
Legal and political dimensions
The Supreme Court ruling narrowed presidential authority to impose tariffs without congressional approval. Trump has turned to alternative legal tools to maintain his trade agenda, underscoring the ongoing tension between executive power and trade policy.
Economists warn the new duties could raise import costs, fuel inflation, and provoke retaliatory measures from trading partners. With U.S. midterm elections approaching, the tariffs also carry domestic political implications alongside significant international consequences.
