US Implements 10% Global Tariffs for 150 Days via Section 122

The United States has officially enacted a 10% global import tariff, effective for a 150-day period, marking a significant escalation in trade policy. The administration utilized Section 122 to implement these measures, effectively bypassing Congress following previous legal challenges in the Supreme Court. While the move revives trade tensions, the 10% rate is notably lower than the 15% previously threatened by President Donald Trump. This lower-than-expected figure has provided a degree of relief to global markets that had braced for more severe protectionist measures. However, the tariffs are expected to exert inflationary pressure and impact major currency pairs including EUR/USD and USD/CNY. Investors remain cautious as the long-term implications for global trade and supply chains continue to unfold during this 150-day window.