”The Supreme Court ruled that tariffs imposed by the Trump Administration under IEEPA1 exceeded the authority granted by Congress to the Executive Branch. The Administration responded to the Supreme Court’s IEEPA ruling by imposing a 15% tariff under Section 122 of the Trade Act of 19742, with exemptions for critical minerals, pharmaceuticals, and certain metals, transportation equipment, and agricultural products. Section 122 allows for a maximum 15% tariff rate for up to 150 days, after which tariffs under this authority must be extended by an act of Congress. The Budget Lab at Yale University3 estimated consumers faced a 16% overall average effective tariff rate prior to IEEPA tariffs being struck down by the Supreme Court. Following the elimination of IEEPA tariffs and imposition of Section 122 tariffs, the Yale Budget Lab puts the current average effective rate at 13.7%, and projects this rate will fall to 9.1% if Section 122 tariffs expire after 150 days.” Læs hele analysen her.
Morten W. Langer
