Treasury: Trump Won’t Raise 10% Global Tariff to 15% This Year

Treasury official Brian Bessent said President Trump has decided not to raise the 10% global tariff to the 15% cap allowed under Section 122 during the 150-day period after a 6-3 Supreme Court decision that struck down earlier tariffs. The administration imposed the 10% rate immediately under Section 122.

Treasury officials said the choice is likely to limit near-term price pressure and may reflect concern about inflation or a decision to preserve higher rates as leverage in later negotiations.

The department is also conducting broad Section 301 investigations into unfair trade practices and forced labor. Those inquiries are scheduled to conclude around the time the Section 122 authority expires and are intended to form the legal basis for more durable tariffs once the 150-day window closes.

Treasury lawyers and officials acknowledged both Section 122 and Section 301 actions are likely to face court challenges. Bessent warned that if the Section 301 investigations fail to meet legal standards, tariffs based on them could be vulnerable to litigation and might return to the Supreme Court for review.

Officials said political timing could affect the administration’s trade strategy as the midterm elections approach.

Bessent offered several additional policy notes. He urged the Senate to “get Warsh confirmed as soon as possible,” noting the first confirmation hearing is scheduled for April 21. He expressed confidence that core inflation will decline, said the Treasury supports passage of a housing bill, and described China as an unreliable partner during the war while accusing the country of hoarding oil.

Markets reacted to the announcements. The S&P 500 rose 44 points to 6,930. West Texas Intermediate crude fell $5.50 to $93.58 per barrel. The U.S. dollar weakened broadly and gold rose about $61.

Section 122 allows the president to impose a global tariff for up to 150 days at a maximum rate of 15%. Section 301 permits investigations into unfair foreign trade practices and can provide a legal route to impose longer-lasting trade restrictions when findings support such actions.