REGULATORY · MARKET STRUCTURE · GLOBAL
US trade policy: Trump administration’s 10% global tariff takes effect
Change
The Trump administration’s new 10% global tariff has come into effect, applied under section 122 of the Trade Act of 1974 and layered on top of existing most-favoured-nation duties.
Why it matters
The executed change is the start of a 10% global tariff that applies in addition to existing US most-favoured-nation rates, creating an immediate cost increase on covered imports. The administration is implementing the duties under section 122 of the Trade Act of 1974, bypassing congressional approval, which elevates legal and policy uncertainty around durability and scope. The timing follows a supreme court ruling that struck down the prior sweeping tariff program, shifting the constraint from a court-limited regime to a new statutory basis. Separately, FedEx has filed suit seeking a refund tied to tariffs after the supreme court decision, signaling potential downstream disputes over collections and refunds.
Implications
- • Immediate landed-cost increase: +10% tariff on top of MFN duties
- • Contract pricing/margins reset for import-dependent sectors and logistics
- • Higher legal/policy uncertainty as tariffs are imposed without Congress
- • Potential refund/repayment exposure as tariff collections are litigated
Who is affected
- • US importers of goods subject to the new global tariff
- • Multinational manufacturers/retailers with US-bound supply chains
- • Freight, express, and customs-brokerage/logistics providers (e.g., FedEx)
- • Foreign exporters selling into the US market
Source
Topics
World & Politics Policy & Regulation Trade & Tariffs Law & Public Safety Court Rulings