Overview
- The U.S. Supreme Court ruled that the president exceeded his authority by using the 1977 International Emergency Economic Powers Act to levy sweeping reciprocal tariffs.
- President Trump replaced the invalidated scheme with a 10 percent global tariff, invoking Section 122 of the Trade Act of 1974, which allows up to 15 percent for up to 150 days.
- A senior White House official said country-specific rates would align with the new level, lowering Japan’s tariff rate from 15 percent to 10 percent.
- Japan will press ahead with its US$550 billion U.S. investment commitment, with a first-round slate of about US$36 billion for projects in Ohio, Texas and Georgia.
- Japanese officials are preparing to negotiate with Washington to prevent further tariff escalation and to manage export risks ahead of Prime Minister Sanae Takaichi’s March 19 meeting with President Trump.