Trump says he will raise US global tariff rate from 10% to 15%, following court ruling

By Doina Chiacu and Andrea Shalal

WASHINGTON, Feb 21 (Reuters) - President Donald Trump said on Saturday he will raise a temporary tariff from 10% to 15% on U.S. imports from all countries, the maximum level allowed under the law, after the U.S. Supreme Court struck down his previous tariff program.

Trump had immediately announced a 10% across-the-board tariff on Friday after the court's decision, which found the president had exceeded his authority when he imposed an array of higher rates under an economic emergency law.

The new levies are grounded in a separate but untested law, known as Section 122, that allows tariffs up to 15% but requires congressional approval to extend them after 150 days. No president has previously invoked Section 122, and its use could lead to further legal challenges.

Trade experts and congressional aides are skeptical the Republican-majority Congress would extend the tariffs, given polls that show growing numbers of Americans blame the duties for higher prices.

TRUMP EYES OTHER WAYS TO IMPOSE TARIFFS

In a social media post on Saturday, Trump said he would use the 150-day period to work on issuing other "legally permissible" tariffs. The administration intends to rely on two other statutes that permit import taxes on specific products or countries based on investigations into national security or unfair trade practices.

"I, as President of the United States of America, will be, effective immediately, raising the 10% Worldwide Tariff on Countries, many of which have been 'ripping' the U.S. off for decades, without retribution (until I came along!), to the fully allowed, and legally tested, 15% level," he wrote in a Truth Social post.

The Section 122 tariffs include exemptions for certain products, including critical minerals, metals and energy products, according to the White House.

Wendy Cutler, a former senior U.S. trade official and senior vice president at the Asia Society think tank, said she was surprised Trump had not gone for the maximum Section 122 rate on Friday, but that his rapid-fire change underscored the uncertainty trading partners faced.

Trump, who often describes tariffs as his favorite word, has attacked individual justices in personal terms and insisted he retained the power to impose tariffs as he sees fit.

TRADE DEALS MUST BE HONORED: GREER

Trump has used the tariffs, or the threat of imposing them, to extract trade deals from foreign countries.

After the court's decision, Trump's trade representative, Jamieson Greer, told Fox News on Friday that those countries must honor agreements even if they call for higher rates than the Section 122 tariffs.

Exports to the U.S. from countries such as Malaysia and Cambodia would continue to be taxed at their negotiated rates of 19%, even though the universal rate is lower, Greer said.

The ruling could spell good news for countries like Brazil, which has not negotiated a deal with Washington to lower its 40% tariff rate but could now see its tariff rate drop to 15%, at least temporarily.

Trump's approval rating on his handling of the economy has steadily declined during his year in office, with 34% of respondents saying they approve and 57% saying they disapprove in a Reuters/Ipsos poll that closed on Monday.