Let's talk about the new Trump tariff
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What recent Supreme Court ruling affected Trump's tariffs?
On this Monday after that big Supreme Court tariff ruling, we'll catch you up on the latest. From American Public Media, this is Marketplace.
In Denver, I'm Amy Scott, in for Kai Risdahl. It's Monday, February 23rd. Good to have you with us. So, quick recap. On Friday, the U.S. Supreme Court dealt a serious blow to President Trump's economic agenda.
What are the details of the new 15% tariff announced by Trump?
A 6-3 majority ruled that the president had overstepped his authority when he imposed sweeping tariffs on foreign goods using the International Emergency Economic Powers Act, or AIPA, last year. Within hours of the decision Friday, Trump pivoted, announcing a new 10 percent tariff with some exemptions under a different statute, Section 122 of the Trade Act of 1974. Then over the weekend, he increased that rate to 15 percent. That new tariff goes into effect at midnight tonight, though unless Congress votes to extend it, it's temporary, expiring in late July. Marketplace's Mitchell Hartman has more now on what to expect.
Under Section 122, President Trump has some very specific tariff-imposing powers, says Erica York at the Tax Foundation.
The president can issue a proclamation without any investigation required to impose tariffs of up to 15 percent, and those can't last more than 150 days unless Congress approves them.
They don't have to be justified by other countries' alleged unfair trade practices or to protect U.S. national security. The president just has to assert that the U.S. faces a balance of payments crisis.
These are rate-limited, time-limited tariffs, not a really broad authority like what the president tried to do under IEPA.
And they don't vary from country to country, so the Trump administration can't use them to punish certain trading partners. But the new tariffs don't cover everything we import, not by a long shot, says Gary Huffpower at the Peterson Institute for International Economics.
How are small businesses reacting to the new tariff policy?
This uniform 15% already has some jagged edges.
Anything covered by the U.S.-Mexico-Canada trade agreement isn't subject to the new tariff.
Plus... The president has exempted a lot of specific goods that will not be covered no matter where they come from, like pharmaceuticals, critical minerals.
Also, food imports like beef, tomatoes, and oranges. And products already facing high tariffs to protect U.S. domestic producers, like steel, aluminum, and motor vehicles.
Summing up the new tariff regime, Joe Brusuelis at consulting firm RSM says, For the next 150 days, the average effective tariff rate is going to be somewhere just under 13%. Then after the alleged authority to impose these tariffs expire, it'll be just under 7%.
It was more than twice that high until the Supreme Court threw out President Trump's IEPA tariffs last Friday. I'm Mitchell Hartman for Marketplace.
On Wall Street today, traders were not happy. We'll have the details when we do the numbers.
Thank you.
As we've been reporting since the beginning of the Trump tariff, small businesses have borne much of the brunt of higher import costs.
What tax deduction could impact auto sales this year?
For a look at how what's happened in the past three days is affecting some of those businesses, we're going to have three dispatches on the show today. First up is Katie Lazar, general manager of Kane Vineyard and Winery in Napa Valley, California. Last time she was on the program, Lazar told us her company had lost 100%. Yes, all of its international business, thanks to that first round of tariffs last year. We gave her a call to see if anything's changed.
In February, we've attended actually two very important trade shows. The first was an international trade show in Paris called Vine Paris, where there were thousands and thousands of producers. We tried to reestablish our connection with our importers there, and they were unable and unwilling to meet with us at that time.
How might consumers benefit from the new auto loan interest deduction?
Now, it doesn't necessarily mean that it's dead forever, but it's dead for another year. For importation, we get all of our barrels from France. We get all of our corks from Portugal and much of our bottles from outside of the United States.
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Chapters
8 chapters
1
What recent Supreme Court ruling affected Trump's tariffs?
0:02–0:35
2
What are the details of the new 15% tariff announced by Trump?
0:35–2:16
3
How are small businesses reacting to the new tariff policy?
2:16–3:51
4
What tax deduction could impact auto sales this year?
3:51–4:41
5
How might consumers benefit from the new auto loan interest deduction?
4:41–6:44
6
What challenges do businesses face with the new tariff regime?
6:44–7:42
7
Will consumers receive refunds for previous tariffs?
7:42–10:01
8
What is the outlook for U.S. battery demand amidst tariff changes?
10:01–25:32