While President Trump’s announcement of a 15% universal tariff grabbed global headlines Saturday, the details buried in the policy reveal important exemptions that could shield some of the most sensitive sectors of the American economy from the full impact of his escalating trade war.
Critical minerals, metals, and pharmaceuticals are all excluded from the new 15% tariff, as are goods from Canada and Mexico that comply with the terms of the United States-Mexico-Canada Agreement. These carve-outs reflect the administration’s recognition that certain supply chains are too strategically important or economically fragile to absorb sweeping tariff increases without significant disruption.
The new tariff was announced Saturday on Truth Social, hours after the Supreme Court ruled 6-3 that Trump’s previous IEEPA-based tariff authority was unconstitutional without congressional approval. Trump pivoted immediately to Section 122 of the Trade Act of 1974, which permits tariffs of up to 15% for 150 days before legislative authorization is required. He called the new rate “fully allowed and legally tested.”
Trump’s announcement was accompanied by fierce criticism of the Supreme Court. He called the ruling “ridiculous” and branded majority justices as “fools and lapdogs,” reserving particular scorn for his own nominees Barrett and Gorsuch. He praised dissenters Kavanaugh, Thomas, and Alito as courageous defenders of American economic interests.
Sector-specific tariffs on steel, aluminum, lumber, and autos remain fully in force under separate legal authority and are unaffected by the court’s ruling. European leaders called for stability, with Germany’s Merz warning of tariff uncertainty’s toxic effects and France’s Macron defending the principle of judicial oversight. About 90% of the $130 billion in tariffs collected to date has been paid by US businesses and consumers.