Trump places 15% global tariff, but USMCA remains exempt 

President Trump imposed a 10 percent and then 15 percent global tariffs Friday after the U.S. Supreme Court ruled his tariff policies were illegal. 

The court said the tariff policies under the International Emergency Economic Powers Act are unconstitutional. 

In a Saturday social media post, the president said he reinstated the tariffs under Section 122 of the Trade Act of 1974, which allows for tariffs of up to 15 percent for 150 days. 

The administration said it is leaving in place an exemption for most goods shipped under the USMCA trade agreement, which includes many agricultural products, and it is leaving in place separate deals with Central American countries, which also include ag products. 

The International Fresh Produce Association BB #:378962, which supports the Supreme Court ruling on tariffs, told its members February 20:  

“The president also stated that his administration will initiate ‘several Section 301 and other investigations to protect our country from unfair trading practices of other countries and companies.’ He indicated that he will not seek congressional approval for new tariff authorities. 
 
“About Section 122 
 
Under Section 122 of the Trade Act of 1974:  

• The president may impose temporary import surcharges (tariffs) of up to 15% or quotas. 

• These measures may last for no more than 150 days unless Congress approves an extension. 

• They may apply to all imports or selectively to countries that impose “unjustifiable or unreasonable” restrictions on U.S. commerce. 

• The provision was created to give the president a fast-acting tool to respond to serious balance-of-payments deficits, urgent trade imbalances, or retaliatory trade actions. 

“No formal action has been taken by the administration at this time, and additional details are not yet available. IFPA will provide additional analysis and guidance to members as more information becomes available.”