US Tariffs Set to Climb to 15% This Week, Treasury Secretary Bessent Confirms

Treasury Secretary Scott Bessent has indicated that a global tariff rate of 15% is anticipated to be implemented this week, a significant increase from the current 10% level. This move aims to reinstate trade duties following a recent Supreme Court ruling that invalidated President Trump's prior use of emergency powers to impose steeper tariffs.

Tariff Rate Adjustment Expected This Week

Speaking on CNBC’s “Squawk Box”, Secretary Bessent stated, “That’s likely sometime this week,” regarding the increase from the current 10% global tariff to the promised 15%. The Trump administration had announced the higher rate last month after the Supreme Court, in a 6-3 decision on February 20th, ruled that President Trump lacked the legal authority to bypass Congress and impose tariffs using the International Emergency Economic Powers Act (IEEPA).

Following the Supreme Court's judgment, President Trump issued an executive order establishing a 10% global tariff under a different legal statute. He subsequently announced an intention to raise this rate to 15%, but the tariff effectively entered force at the lower 10% rate.

Temporary Measures and Future Strategy

Bessent explained that the current replacement tariffs, imposed under Section 122 of the Trade Act of 1974, are temporary and can remain in effect for a maximum of 150 days unless extended by Congress. During this period, the Office of the U.S. Trade Representative and the Commerce Department will conduct trade-related studies.

“It’s my strong belief that the tariff rates will be back to their old rate within five months,” Bessent affirmed. He added that the administration plans to utilize other legal avenues, such as Section 301 and Section 232, to introduce more permanent duties after the 150-day period concludes. These authorities typically target specific countries or industries and are designed to address unfair trade practices or national security concerns, respectively. President Trump has previously employed these tools for tariffs on goods like metals, cars, and has explored their use in disputes over digital taxes and pharmaceutical imports.

Impact and Stability of Tariffs

Bessent expressed confidence in the robustness of the tariff structures, noting that previous iterations have successfully withstood over 4,000 legal challenges. He believes these more deliberate measures are “more robust” than the emergency powers previously utilized. The Treasury Secretary also indicated that the federal government’s projected tariff revenue for the year is not expected to change significantly despite the recent legal and administrative shifts.

The transition to the 10% across-the-board tariff had placed shipments from all countries on a more even footing, altering the trade landscape for various nations. For some countries like China, Vietnam, India, and Brazil, the new 10% rate is significantly lower than previously agreed upon rates. Conversely, for nations such as Britain and Australia, the rate would represent an increase compared to their negotiated export terms.