On March 4th local time, US Treasury Secretary Scott Besant disclosed that the 15% "global import tariff" newly introduced by the Trump administration is expected to be officially implemented this week. This tax rate was adjusted by President Trump last month after the Supreme Court rejected his previous large-scale tariffs, in an effort to maintain the continuity of the trade policy. 

Bessonet said in an interview with CNBC that the new tariff rates would come into effect at some point this week. He also predicted that the overall tariff level in the United States is expected to return to the level before the Supreme Court's ruling within the next five months. "I firmly believe that the tariff rates will return to their original levels within five months," Bessonet emphasized in the interview. "These tariff measures are very comprehensive and have withstood more than 4000 legal challenges. Although they have a slower pace of implementation, they are more stable and effective." 

Back in February 20th, the US Supreme Court made a ruling by a 6-3 vote, determining that the large-scale tariff measures implemented by the Trump administration under the "International Emergency Economic Powers Act" lacked clear congressional authorization and were an abuse of executive power beyond the scope of authority. This ruling was made in a lawsuit filed by US businesses and 12 states, with the plaintiffs arguing that the president's unilateral imposition of import taxes based on this law was unprecedented. 

On the day the ruling was announced, Trump quickly changed his strategy and instead invoked Section 122 of the 1974 Trade Act, declaring a 10% "global import tariff" on all imported goods, with the tariff valid for 150 days. Then, on the 21st, Trump announced via social media that the tax rate would be raised from 10% to 15%, which was the highest rate within the scope authorized by this law. 

Bessonet further elaborated on the subsequent policy path in the interview. He stated that the tariffs implemented in accordance with Article 122 are temporary measures. Unless approved by Congress for extension, they will only be valid for 150 days. During this 150-day window period, the US Trade Representative Office will accelerate the investigation conducted under the 301 clause, while the Department of Commerce will start to implement the tariff measures under the 232 clause. Through these actions, the Trump administration aims to rebuild a complete tariff system in order to achieve the goal of levying tariffs at a higher level. 

Bessonet stated that it is expected that within the next five months, the US tariff levels will return to their previous levels. This means that although there will be adjustments in the legal procedures in the short term, the overall trade policy direction of the Trump administration has not changed. Tariffs will still be an important tool in its governance. 

Source: Shipping Information