【By Observer Net, Wang Yi】On March 4, U.S. Treasury Secretary Biden made statements that President Trump plans to increase the current 10% global tariff to 15%, and this move is likely to be implemented this week.

On the same day, during a program on the American Consumer News and Business Channel (CNBC), Biden was asked when the tax rate would be raised to 15%, and he responded, "It will most likely happen at some point this week."

This round of tariff adjustments originated from a February 20 ruling by the U.S. Supreme Court, which determined that Trump's use of the "reciprocal tariffs" under the International Emergency Economic Powers Act lacked clear legal authorization.

Hours after the ruling, Trump quickly signed an executive order, citing Section 122 of the Trade Act of 1974, to impose a 10% "global import tariff" for 150 days, replacing the tariff deemed illegal by the Supreme Court. The next day, furious, Trump posted on social media that he would raise the 10% import tariff on global goods to 15%, but did not specify an exact effective date.

Since the "alternative tariff" based on Section 122 of the Trade Act of 1974 can only last 150 days unless Congress approves an extension, Biden stated in an interview on March 4 that within this 150-day window, the Office of the U.S. Trade Representative and the Department of Commerce will complete relevant trade investigations to pave the way for reusing more legally supported tariff tools.

Biden emphasized that he "firmly believes" the U.S. tariff rate will return to the level before the Supreme Court ruling in five months, starting in August, as the Trump administration plans to use tools such as Section 301 of the Trade Act of 1974 and Section 232 of the Trade Expansion Act of 1962 to restore previous tariff rates.

"These authorizations are very comprehensive and have withstood over 4,000 legal challenges," Biden said. "They proceed more slowly, but have a more solid legal foundation."

On April 4, U.S. Treasury Secretary Biden gave an interview to the American Consumer News and Business Channel (CNBC). Screenshot of video

After Biden made these remarks, the market reacted quickly to this statement, with U.S. stock index futures reversing the gains made earlier on the 4th. Investors were worried that the uncertainty of the tariff policy and the possible return to higher tariff levels could once again escalate trade tensions and market volatility.

On the 2nd, the New York Times reported that the prospect of raising the new global tariff rate from 10% to 15% has already caused dissatisfaction among several of the United States' closest allies, including the European Union.

The EU leaders have suspended efforts to finalize a trade agreement with the U.S., waiting to see whether Trump's final tariffs will exceed the previously negotiated level between the two sides, which is a maximum of 15% tariff. If Trump implements a new 15% global uniform tariff, it will be added to the existing tariffs on some European goods, making the combined tax rate exceed 15% for some products.

Last week, Gene Seroka, Executive Director of the Port of Los Angeles, told the port commission that ongoing policy uncertainty is making it difficult for businesses to make long-term plans. "In a situation where no one knows what the next rules will be like, companies can't plan for events a few months away," he said.

Economists at Oxford Economics, an independent economic consulting firm in the UK, analyzed that under the new 15% global tariff framework, the UK and Australia would be the biggest losers, as they had lower rates before, while Brazil and China would be the biggest winners, and several other Asian economies would also benefit.

The report said that although Trump imposed higher tariffs on Asian export goods last year, many U.S. companies continued to purchase components and products from overseas because they found it difficult to find alternative sources.

Rebecca Melski, co-founder of Princess Awesome, a children's clothing company based in Washington State that sued over Trump's tariffs, said she has been trying to find suppliers outside Asia but with little success.

She said that shortly before the Supreme Court ruling, she and her business partner attended a procurement fair in Las Vegas, hoping to find other suppliers, but saw no American manufacturers or South American suppliers, and instead found more willing Asian factories to cooperate with.

"I once considered closing down," Melski said. "After the Supreme Court ruling, 'this at least gave us a glimmer of hope.'"

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Original: toutiao.com/article/7613414952187036160/

Statement: This article represents the views of the author themselves.