President Trump is implementing a global import tax. Image credit: Chip Somodevilla/Getty Images
Hours after the Supreme Court struck down sweeping “reciprocal” tariffs as illegal, President Donald Trump appeared before the courts and said he would impose a 10% global tariff under a different trade law with more restrictions and a timetable.
The announcement follows a 6-3 ruling that earlier tariffs, imposed under the International Emergency Economic Powers Act, exceeded presidential authority and required congressional approval. The now-repealed tariffs cost Apple roughly $2 billion.
Section 122 provides a narrower legal route but does not mitigate the economic impact. The statute authorizes temporary tariffs totaling up to 15% for 150 days unless Congress votes to extend them.
The new increases are still about four times what Apple paid in February 2025 tariffs.
The temporary tariff is still a tax increase
Section 122 was designed as a short-term balance of payments tool, not a substitute for comprehensive trade policy. A 10% global tariff may have an expiration date, but it works immediately as a tax increase on imports.
Markets can tell the difference between permanent politics and political games. Companies still have to set prices, manage contracts and reassure investors while dealing with another sudden change in business rules.
Apple has already spent hundreds of millions to reorganize production and logistics after the earlier tariffs. The new 10% tax introduces new uncertainty before the financial damage from the previous round is even fully resolved.
A global tariff eliminates flexibility
Section 122 requires non-discriminatory treatment, which means that imports from each country must be subject to one uniform rate of duty.
The requirement rejects the administration’s previous country-by-country approach and removes the ability to selectively pressure or reward trading partners. The flat 10% tariff applies equally to China, India, Vietnam, South Korea and all other hubs in Apple’s global supply chain.
Tim Cook (left) and Trump at a previous meeting. Image credit: The White House
Diversification of the supply chain was intended to reduce geopolitical exposure. A global tariff undermines these efforts by taxing imports regardless of origin, effectively penalizing companies that have adapted to earlier trade disruptions.
Consumers, not foreign governments, foot the bill
Tariffs are paid by U.S. importers at the border, and these costs are commonly translated into higher prices or absorbed by thinner margins.
The 10% tax would affect iPhones, Macs, PC components, TVs, networking devices and everyday goods. Economists consistently find that previous rounds of tariffs have been felt by American businesses and households, with no real impact on foreign exporters other than a reduction in orders.
Apple has avoided significant retail price increases during past tariff swings by absorbing costs and shifting production. A global renewed tariff will test this strategy again, especially if Congress expands the measure beyond its legal limit.
It is not clear how the vote will turn out. “Reciprocal” tariffs were not well thought out on either side of the aisle and it’s an election year.
Congress and the courts remain a safety net
Section 122 tariffs expire after 150 days unless Congress acts. Lawmakers can authorize the elimination of the tariff or vote to expand what amounts to a broad import tax.
The Supreme Court has already rejected sweeping unilateral tariff claims, and new litigation is likely if businesses challenge how Section 122 is applied. For import-dependent companies like Apple, this pattern is becoming familiar.
Conceived as an economic lever, the policy works in practice as an executive-enforced increase in domestic taxes. The result is renewed supply chain instability and another round of planning around Washington rather than market demand.