Trump's sudden decision to hike his new tariff rate to 15% is 'something of an eff you' to the U.K.
Fortune • • nation
Key Points:
- The Supreme Court struck down Trump's tariffs under the International Emergency Economic Powers Act (IEEPA), leading him to impose a 10% tariff under Section 122 of the 1974 Trade Act, which was then raised to 15%, applicable uniformly to all trading partners.
- The new 15% tariff conflicts with the Trump administration's prior trade deal with the U.K., which set a 10% rate, but must be non-discriminatory under Section 122, affecting all partners equally, including the EU and Japan.
- Despite the headline increase, exemptions mean the effective tariff rate rose modestly from about 12.5% to 14.5%, slightly above the pre-Supreme Court level.
- Trump plans to initiate
