Trump working to change US tariff rate to 15%, official says 'no change of heart' on President's plan

US President Donald Trump's administration is working to change new temporary tariff rate to 15 per cent from 10 per cent, however the timing of change remains unclear, Reuters reported citing White House official adding that there is 'no change of heart' on Trump's plan.

Trump administration is working to change new temporary US tariff rate to 15 per cent from 10 per cent published by Customs and Border Protection, a White House official told Reuters. "No change of heart on Trump's plan for 15% tariff rate under Section 122 statute, timing of change to 15% unclear."

Also read: Trump’s second act on tariffs takes effect with 10% duty on the world. For now


Following US Supreme Court's ruling against country-specific tariffs imposed by the president, the new 10% global tariff took effect at 10:31 AM IST on Tuesday, marking a fresh attempt by the White House to keep his trade policy intact. This has given rise to uncertainties among trade partners, including India.

Last Friday, Trump signed an executive order authorising the 10% import tax under Section 122 of the 1974 Trade Act which allows the government to impose tariffs for 150 days without congressional approval. The US President had earlier threatened to raise the rate to 15%, but no formal directive was issued before the 10% levy came into force.

Commenting on the recent SC ruling, Trump argued that he does not have to go back to Congress to get approval of tariffs. "It has already been gotten, in many forms, a long time ago! They were also just reaffirmed by the ridiculous and poorly crafted supreme court decision," he wrote in a post on Truth Social.

Also read: India, US to resume trade talks once there is clarity on tariffs, says Piyush Goyal

Moody's Analytics believes that a uniform 15 per cent tariff would benefit some Asia-Pacific economies that have faced much steeper country-specific levies, including China and much of Southeast Asia. But it will have a small impact on countries such as Japan, South Korea, and Taiwan (China), where the base rate is already 15 per cent, it said in a statement.

Hitting out at countries without any specific target, Trump said that any nation that wants to “play games with the ridiculous SC decision, especially those that have ripped off the US for years, and even decades, will be met with a much higher tariff and worse, than that which they just recently agreed to."

The SC accidentally and unwittingly gave me far more powers and strength than I had prior to their ridiculous, dumb, and very internationally divisive ruling, he said, for one thing, I can use licenses to do absolutely “terrible” things to foreign countries, especially those countries that have been ripping us off for many decades, but incomprehensibly, according to the ruling, can’t charge them a License fee.

Also read: The US Supreme Court’s ruling on Trump's tariffs sidesteps a deeper problem

"There is a lot of uncertainty, but we do know a few things. A uniform 15 per cent tariff would benefit some Asia-Pacific economies that have faced much steeper country-specific levies," Moody's said.

"We expect Trump to find other legal routes to raise tariffs, and we wouldn't be surprised if US tariffs end up close to where they sat before Friday. Some governments may slow-walk ratification of trade deals with the US, but we think they are unlikely to quit altogether for fear of inviting more punitive tariffs," it added.