Treasury Secretary Scott Bessent announced this week that the United States will raise its global import tariff rate to 15 percent, up from the 10 percent rate President Trump imposed last month following a Supreme Court ruling that struck down the administration’s earlier tariffs. The statement came as part of an interview on CNBC’s “Squawk Box” on Wednesday.
The new rate has not yet taken effect, but Bessent said it would likely happen this week. Under Section 122 of the Trade Act of 1974, the tariffs can remain in place for 150 days unless Congress votes to extend them. Bessent said the office of the U.S. Trade Representative will use that window to conduct trade investigations, with the goal of replacing the temporary tariffs with more permanent duties that would be harder to challenge in court.
Bessent expressed confidence that the administration would be able to return tariff levels to where they stood before the Supreme Court ruling: “It’s my strong belief that the tariff rates will be back to their old rate within five months.”
For jewelry retailers, the impact of the 15 percent rate will vary significantly depending on where your goods originate. Imports from India, Vietnam, China, and Brazil would actually be taxed at a lower rate than what was in place before the court ruling (although more than last month’s 10 percent level). Imports from Britain and Australia, however, would face a higher rate than previously negotiated.
European suppliers are particularly frustrated — the EU had agreed to a maximum 15 percent rate in their trade deal and considers the new tariff a violation of that agreement.
The EU was also alarmed when Trump suggested this week that he may move to cut off trade entirely with Spain following a dispute over U.S. military base access. “We are going to cut off all trade with Spain,” Mr. Trump said at the White House. “We don’t want anything to do with Spain.” The EU said it stands ready to respond if the administration takes action against any member state.
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The situation remains fluid. INSTORE will continue to report updates as they develop.
