- U.S. Trade Representative Jamieson Greer announces tariff rates will increase to 15% or higher for some countries, up from a 10% baseline, with a proclamation expected in coming days.
- The move is implemented under Section 122 of the Trade Act of 1974, limiting the 15% rate to 150 days without congressional approval, following a Supreme Court ruling that blocked use of the International Emergency Economic Powers Act.
- To extend authority beyond the initial period, the administration plans investigations under Sections 301 and 232, targeting unfair trade practices and national security threats, with ongoing probes into Brazil and China.
In a significant policy shift, U.S. Trade Representative Jamieson Greer has confirmed that tariff rates will be raised to 15% for select countries, marking an increase from the newly-imposed 10% baseline. Speaking on Fox Business Network, Greer stated, "It'll go up to 15 (%) for some and then it may go higher for others," though specific countries affected were not disclosed. The announcement comes as the administration navigates legal hurdles, with a proclamation expected soon, according to sources familiar with the matter.
The tariff increase is being implemented under Section 122 of the Trade Act of 1974, a move necessitated by a recent Supreme Court decision that blocked the president's use of the International Emergency Economic Powers Act for imposing tariffs. This legal constraint is critical: the 15% rate can only be maintained for up to 150 days without congressional authorization. Greer acknowledged this limitation in remarks, emphasizing that the administration still possesses "durable tools" to continue tariff efforts, but the shift represents a meaningful reduction in flexibility compared to previous authorities.
Efforts to restructure the tariff framework have hit a snag, with the administration now pivoting to investigations under Sections 301 and 232 of trade law to justify extended measures. These sections address unfair trade practices and national security threats, respectively, and investigations are already underway with Brazil and China. More are expected, targeting Asian countries with industrial excess capacity, according to people briefed on the plans. Without a deal or alternative legal mechanism, the administration could face challenges maintaining tariffs after the 150-day window expires.
Market reactions have been muted so far, but analysts note that the higher 15% rate could impact sectors like textiles, lumber, and automotive production, where tariffs have previously generated significant revenue—estimated at $142 billion under the prior IEEPA framework. Hundreds of businesses have requested refunds following the Supreme Court ruling, but the administration has indicated that refunds will not be issued without court orders, with guidance anticipated from the Court of International Trade. Attempts to reach the U.S. Trade Representative's office for further comment were unsuccessful.
Public approval of tariff policy remains low, with recent polls showing 64% disapproval of how the president is handling tariffs on imported goods. This political backdrop adds pressure as the administration seeks to balance economic strategy with legal realities. The focus on national security and trade investigations suggests a broader definition of these concepts may be employed to sustain tariff authority, but the outcome hinges on congressional dynamics and ongoing legal battles.
Correction: An earlier version of this article misstated the timeline for the tariff proclamation; it is expected in coming days, not immediately.