The Trump Tariff plan has taken a new dimension following the announcement on Saturday, Feb 21, by the US government to raise the global tariff rate to 15%. This announcement came a day after the initial announcement of a 10% tariff rate.
This move by the US government follows a Supreme Court ruling that the previous tariff rate actions under IEEPA were illegal. The Trump Tariff plan change, therefore, puts it within a legally defined framework.
President Donald Trump confirmed the announcement through his Truth Social platform. The announcement states that the tariff rate will take effect immediately.
The 15% tariff rate is fully allowed under Section 122 of the Trade Expansion Act of 1962. Moreover, the announcement indicates that new tariff rate measures will be announced within the coming months.
Source: Truth Social
Trump Tariff Update Moves Forward Under Legal Restrictions
The government is planning to introduce a new tariff structure. According to this plan, all the coming measures must fall within the boundaries set by the Supreme Court. The Trump Tariff plan change is to replace the previous IEEPA tariffs, which were struck down by the Supreme Court.
The statute caps the tariff rate at 15%. This implies that the government can only raise the tariff rate to 15%. Moreover, the tariff rate is to last for five months. However, Congress can extend it for a longer period should it receive approval from the administration.
The 15% tariff rate is a temporary measure. It is put in place to fill the gap following the Supreme Court ruling, which struck down the previous Trump Tariff plan. Moreover, more detailed tariff rate guidelines will be announced once the government completes its internal review.
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The cryptocurrency market reacted to the news. The price of Bitcoin went down to about $68,200 from about $68,600. However, the price later settled and now trades at around $68,510 at the time of writing.
Source: CoinMarketCap
Analysts Weigh In on Market Impact of New Tariff Measures
Some analysts have given their views about the tariff announcement. VanEck’s Matthew Sigel said that the ruling and the tariff change could have some effect on the liquidity.
According to him, the cryptocurrency market may experience some volatility in the absence of tariff revenues, and money printing and debasement will accelerate.
BitMine Chairman Tom Lee spoke in an interview with CNBC. He said that the cryptocurrency market remained stable due to the tariff news. He further stated that the unwinding of the previous ruling would not affect the cryptocurrency market.
The announcement could trigger fresh volatility in the crypto market. Investors could respond cautiously as they assess the potential scope of future measures. There are some uncertainties regarding the tariff revenue previously collected under the IEEPA-based Trump tariffs.
The Supreme Court ruling could bring some questions about whether the US refunds these funds, which could total $175 billion in tariff revenue. The Trump Tariff issue is expected to dominate policy discussions as new measures move forward.
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