Supreme Court Voids IEEPA Tariffs, Section 122 Imposes 15% Surcharge, Thailand ETF Up 0.33%
US Supreme Court invalidated Trump’s IEEPA tariffs, prompting President Trump to impose a 15% global surcharge under Section 122 that will run through July 24. The iShares MSCI Thailand ETF gained 0.33% as effective tariff rates shifted sharply across major trading partners, with Brazil down 10 percentage points.
1. Supreme Court Decision
The Court struck down all Trump-era tariffs under the International Emergency Economic Powers Act, invalidating reciprocal and emergency duties on Canada, China and Mexico. The ruling reduced the increase in the US effective tariff rate from just over 10 percentage points to approximately 9 percentage points.
2. New Section 122 Surcharge
Within hours, the administration implemented a 10% global tariff under Section 122 of the Trade Act of 1974, later raised to the 15% statutory maximum. This surcharge applies to all imports and remains in effect through July 24 unless replaced by Section 301 actions.
3. Impact on Thailand ETF
The iShares MSCI Thailand ETF climbed 0.33% in early trading as adjusted US tariffs altered competitive dynamics for Thai exporters. Lower duties for some Asian peers and shifts in trade flows may influence Thailand’s export volumes in the coming quarter.
4. Varying Country-Level Changes
Effective tariff changes vary sharply: Brazil’s rate drops 10 percentage points to 2.4%, China falls 6.6 points to 14.3%, while the EU rises 0.9 points to 10.9% and the UK climbs 2.9 points to 10.9%. These shifts could reshape global trade flows and ETF performance.