A new 10pc tariff on US imports from all countries went into effect on Tuesday, replacing the emergency tariffs imposed last year that the Supreme Court struck down on 20 February.
The new tariff will exempt energy, critical minerals, fertilizers and certain agricultural imports. It will also exempt imports eligible for duty-free treatment under the US-Mexico-Canada free trade agreement. The 10pc tariff will not be added on top of existing sectoral duties on steel, aluminum, copper, cars and auto parts.
President Donald Trump on 20 February invoked Section 122 of the 1974 Trade Expansion Act to impose the 10pc tariff. A day later, Trump posted on his social media platform that he would raise the rate to 15pc, but the social media post does not have legal force.
The US will assess the Section 122 duty at the 10pc level, the Customs and Border Protection (CBP) agency said late on Monday.
The law cited by Trump allows him to maintain the 10pc tariff for a period of 150 days, unless the US Congress authorizes an extension.
CBP also said it will stop collecting the invalidated emergency tariffs effective on Tuesday. The agency said it was ready to "implement current and any forthcoming executive actions as directed by the president" with regard to refunding an estimated $175bn in tariffs the US Supreme Court said were imposed unlawfully. Trump said he is expecting a years-long court fight over refunds.
