Trump's new 10% global tariff officially takes effect, and the United States' "tariff wall" enters the rebuilding phase.

Notice that the new 10% global tariff implemented by US President Trump officially took effect on Tuesday. Previously, the Supreme Court overturned his original comprehensive tariff plan, and this new tariff marks a new effort by the White House to continue the president's trade agenda. Following the Supreme Court ruling last Friday, President Trump signed an executive order authorizing a 10% import tax. He had threatened to raise this number to 15%, but when the 10% tax went into effect early Tuesday morning Washington time, Trump did not officially issue the directive to increase the tax rate. According to a government official, the White House is working on a formal order to increase the global tariff rate to 15%. The anonymous official stated that the timeline for implementing the higher tax rate has not yet been finalized. The lack of clarity from the US federal government has caused confusion worldwide regarding its tariff agenda. Countries and companies are carefully studying existing trade agreements to determine the implications they will face under Trump's latest threats. Major trading partners, including the EU and India, have suddenly halted ongoing trade negotiations amid the uncertainty. Trump is implementing the 10% benchmark tariff under Section 122 of the 1974 Trade Act, which allows the president to impose tariffs for 150 days without congressional approval. Prior to this, the courts ruled that his use of emergency powers to impose so-called "equitable" tariffs on global commodities was illegal. The order includes some exemptions, such as products that comply with the USMCA agreement and some exemptions that were already included in Trump's previously invalidated tax policies. With these exemptions taken into account, the average effective tariff rate in the US will stabilize at around 10.2%, lower than the pre-court ruling of 13.6%. Studies show that if a 15% global tariff is implemented, the effective tax rate will be around 12%. The Section 122 plan is insufficient to replace the International Emergency Economic Powers Act The Trump administration has stated that tariffs will remain a core part of its trade policy, and reiterated plans to initiate a series of rapid investigations to unilaterally impose tariffsa goal that aims to rebuild the tariff system effectively destroyed by the court ruling. Any authorization tools currently in place by the White House, such as Section 301 and Section 232, are not as flexible as the emergency powers Trump previously used to pressure trade partners. The government is preparing to launch investigations into the impact of imports of various industrial goods on national security grounds, including batteries, cast iron and iron fittings, power grid and telecommunications equipment, plastic pipes, and certain chemicals. These investigations, yet to be officially announced, are a prelude to imposing new tariffs, but may take several months to reach conclusions. In response to the court ruling, government officials are urging trade partners to abide by agreements reached with the US over the past year. US Trade Representative Jamie Gril said in the media on Sunday, "We hope they understand that these agreements will be mutually beneficial." "We will adhere to the agreements and also expect our partners to do the same." This argument lacks persuasiveness to some major economies. On Monday, the EU suspended approval procedures for agreements with the US until Trump clarifies his latest tariff plans. In New Delhi, India, officials postponed negotiations on a midterm trade agreement with the US for similar reasons. Trump threatened on Monday to impose higher tariffs on partners who "play tricks" on existing agreements. Christine Lagarde, President of the European Central Bank, said in the media that obtaining "clarity" from the US government on global trade is "crucially important." Trump's threat to raise the global benchmark tariff to 15% has unsettled some traditional allies who have reached agreements with Trump. The UK negotiated a 10% tariff rate with the US last year, and a higher rate may disadvantage its exporters. Meanwhile, other more competitive countries, including China, may find that their bargaining power in negotiations with Trump has increased following the reduction of his emergency powers. A few hours after the tariffs took effect, Trump is expected to deliver the State of the Union address to Congress, with Democrats and some Republicans opposed to his trade policy in attendance. This pivotal speech is expected to focus on his economic agenda as Republicans seek to set the tone for the upcoming mid-term elections for voters facing rising living costs. Public opinion surveys indicate that public opposition to Trump's trade policy is increasing, with more people seeing it as a cause of rising prices. The survey found that 64% of Americans do not support Trump's handling of tariffs, while 34% do.