By Anjali Sharma
WASHINGTON – The White House on Saturday has announced a fresh 10% import tariff that will apply to goods entering the US for 150 days.
The move followed a US Supreme Court ruling that struck down earlier reciprocal tariffs introduced by President Donald Trump.
White House has rolled out a temporary import duty using a rarely discussed trade provision, raising questions over exemptions, duration, and the scope of presidential powers in trade matters.
The new measure is based on Section 122 of the Trade Act of 1974.
It allows the US President to impose temporary import restrictions to deal with what the law calls “fundamental international payment problems”. The tariff will take effect on February 24.
Trump has issued a proclamation imposed a 10 per cent “ad valorem” duty on imports into the United States. This means the tariff will be calculated as a percentage of the value of the imported goods.
The duty will remain in place for 150 days.
The administration in a statement said the US faces “a large and serious balance-of-payments deficit”.
It argued that the country imports much of what it consumes, sending US dollars overseas and weakening domestic production.
The officials added that Section 122 is being used to respond to what the White House described as a “fundamental international payments problem”.
“The United States faces fundamental international payment problems, in particular a large and serious balance-of-payments deficit. As a result of its loss of domestic production, the United States must import much of what it consumes, sending US dollars out of our own economy and overseas.”
White House said some goods are excluded due to the needs of the US economy or to ensure the tariff better addresses the payment imbalance. These include certain critical minerals, pharmaceuticals and their ingredients, natural resources and fertilizers, energy and energy products, metals used in currency and bullion, some agricultural products, certain electronics, passenger vehicles and other items.
Tariffs imposed under Section 122 will expire after 150 days unless Congress votes to extend them.
Trade experts noted that even if the measure lapses, a President could reintroduce similar tariffs by declaring a fresh balance-of-payments emergency.
Section 122 does not require a formal investigation before tariffs are imposed. This allows the President to act quickly unlike several other US trade laws,.
Trump has instructed the US Trade Representative to launch a Section 301 investigation into trade practices the administration considers unfair to American businesses.
US administration has indicated that other trade statutes remain under consideration.
The officials argued that the Supreme Court ruling addressed a specific legal route, not the broader authority to impose tariffs.
