By The United States began collecting a temporary new 10% global import tariff on Tuesday, but the Trump administration is working to increase it to 15%, a White House official said, sowing confusion over President Donald Trump’s tariff policies following last week’s Supreme Court defeat.
Trump initially signed an order on Friday for a 10% tariff to last 150 days, replacing broad duties under an emergency law that were struck down by the Supreme Court. However, on Saturday, he said he would increase the rate to 15%. On Monday night, before the midnight start of collections, the U.S. Customs and Border Protection agency notified shippers that the rate would be 10%.
The White House official told reporters that Trump has had “no change of heart” in his desire for a 15% tariff under Section 122 of the Trade Act of 1974 but offered no details on the timing of that increase.
As of Monday, Trump had not signed a formal presidential order for the increase to 15%, and CBP can only act on published presidential executive orders and proclamations. CBP’s notice referred to his Friday order, stating that aside from products covered by exemptions, imports would “be subject to an additional ad valorem rate of 10%.”
Two cargo ships loaded with shipping containers are seen at the Port of Oakland amid escalating trade tensions over U.S. tariffs, in Oakland, California, on March 6, 2025. (Reuters/Carlos Barria)
Unclear Why Lower Rate Is Imposed
The move added to confusion surrounding U.S. trade policy, with no explanation offered in the notice for why the lower rate was used.
“Trump is delivering the State of the Union address tonight, so it’s possible we might get a better sense of the next steps on tariffs,” Deutsche Bank said in a note.
“Net-net, we still think the effective tariff rate will fall this year and that the world post-SCOTUS will see lower tariffs than the pre-SCOTUS world,” its analysts said, using the acronym for the Supreme Court of the United States.
Although a 10% tariff is less punitive than expected, traders cited uncertainty about the trade outlook as one reason global stocks opened lower on Tuesday. Major U.S. indexes traded higher by midday, with the Dow Jones Industrial Average up 0.65%, the S&P 500 Index gaining 0.5%, and the tech-heavy Nasdaq up 0.8% as Anthropic introduced new AI tools.
The new tariff took effect at midnight, while collection of the tariffs annulled by the Supreme Court was halted. They had ranged from 10% to as much as 50%.
EU Reassured on Trade Deal
The new 10% tariff presents a conundrum for the European Union, which agreed to a trade deal with a 15% base tariff rate. European Commission Trade Minister Maros Sefcovic said the bloc faces a “transitional period” over Trump’s new temporary tariff but added that U.S. trade officials have reassured him Washington will stand by the agreement.
It remains unclear whether and how companies will be refunded for tariff payments made under the program annulled by the Supreme Court.
The Section 122 law allows the president to impose the new duties for up to 150 days to address “large and serious” balance-of-payments deficits and “fundamental international payments problems.”
Trump’s tariff order argued that a serious balance-of-payments deficit exists in the form of a $1.2 trillion annual U.S. goods trade deficit, a current account deficit of 4% of GDP, and a reversal of the U.S. primary income surplus. However, some economists and trade lawyers argue that the U.S. is not on the brink of a balance-of-payments crisis, making the new duties vulnerable to legal challenge.
EU Trade Commissioner Maroš Šefčovič speaks in March 2025, stating for the first time that the U.S. administration does not appear committed to reaching a deal to avert a potential trade war with Brussels.
Trump Warns Against Reneging on Trade Deals
On Monday, Trump warned countries against backing away from previously negotiated trade deals with the United States, stating that he would impose much higher duties under different laws.
Japan said it had asked the United States to ensure its treatment under the new tariff regime would be as favorable as in an existing agreement. The European Union, Britain, and Taiwan also indicated a preference to stick to their existing deals.
Carsten Brzeski, global head of macro at ING, noted that even with the 150-day limit of the current measures, trade uncertainty is unlikely to disappear soon.
“Because the next thing that he (Trump) could do is always, with the interruption of one day, theoretically extend it endlessly by another 150 days,” he said.
China urged Washington to abandon its “unilateral tariffs,” indicating it is willing to hold another round of trade talks with the world’s largest economy, the country’s commerce ministry said in a statement on Tuesday.
