New Tariffs to Hit Select Countries at 15%, Trump Warns of 'Worse Deals'

President Donald Trump used his first State of the Union address of his second term to tout his tariff policies while warning trading partners that new trade agreements could be "much worse" for them.

Speaking for 108 minutes at the U.S. Capitol on January 24, Trump addressed the Supreme Court's January 20 ruling that struck down his reciprocal tariffs as unlawful under the International Emergency Economic Powers Act (IEEPA). "It was a very regrettable decision, but the good news is that almost every country and company wants to maintain the agreements they have already reached," Trump said.

"Given my legal authority as president, they know that striking new deals could be much worse for them," Trump added. "They will continue to cooperate along the same successful path negotiated before the court's regrettable intervention."

Trump emphasized that replacement tariffs would be "stronger than before" and predicted that "over time, tariffs paid by other countries will substantially replace the current income tax system, as in the past."

Following the Supreme Court ruling, Trump activated a 10% global tariff under Section 122 of the Trade Act at 12:01 a.m. on January 24. The next day, he announced via Truth Social that he would raise the rate to 15%.

The U.S. Trade Representative's office has since indicated that the 15% rate would apply only to select countries, suggesting differentiated treatment based on trade agreement compliance.

The administration also launched investigations under Section 301 of the Trade Act, which authorizes tariffs against unfair, unreasonable, or discriminatory foreign government practices. According to The Wall Street Journal, the administration is preparing new tariffs under Section 232 of the Trade Expansion Act targeting six industrial sectors: large batteries, cast iron and steel components, plastic piping, industrial chemicals, power grid equipment, and telecommunications equipment.

The strategy appears aimed at imposing 10-15% global tariffs for up to 150 days under Section 122 while completing Section 301 and Section 232 investigations to ensure continuous tariff coverage. While Trump was the first president to use IEEPA for tariffs, Section 301 and Section 232 tariffs have precedent under Presidents Richard Nixon, Ronald Reagan, and Joe Biden. Courts upheld Section 232 steel tariffs during Trump's first term.

"Golden Age" Self-Praise; No Mention of China Visit or Cryptocurrency

Trump's approval ratings have languished in the 30% range across multiple polls, raising Republican concerns about losing House control in the November 3 midterm elections. The elections will determine all 435 House seats, 34 of 100 Senate seats, and 36 of 50 governorships.

Trump devoted considerable time to praising his economic record, claiming to have resolved recession, inflation, illegal immigration, and crime problems inherited from President Biden within one year. "We have achieved a transformation and historic turnaround unlike anything anyone has seen," he said.

"Over the past 12 months, our government has lowered core inflation to its lowest level in over five years," Trump said. "In the last three months of last year, it fell to 1.7%."

He declared the U.S. is in "a golden age—bigger, better, wealthier, and stronger than ever before."

Trump made no mention of his planned March 31-April 2 visit to China, North Korea, or cryptocurrency—which he had promised to promote during his campaign. He did, however, strongly suggest military force remains an option to stop Iran's nuclear weapons development.

"They want to make a deal, but I have not yet heard the secret words: 'We will never have nuclear weapons,'" Trump said. "I will pursue peace whenever possible, but will never hesitate to confront threats aimed at America when necessary."

South Korea Faces Uncertainty Over Coupang Investigation

For South Korea, the administration's investigation into Coupang's massive data breach—which U.S. officials have characterized as suppression of an American company—has emerged as a potential complication in trade relations. Whether countries receive the baseline 10% tariff or the higher 15% rate may depend on their compliance with existing trade agreements.

Trump's 108-minute address broke the previous State of the Union record of 88 minutes and 49 seconds set by President Bill Clinton in 2000 by 20 minutes. The president signaled he would maintain current policies on tariffs and immigration heading into the midterms.

Despite having called Supreme Court justices "fools" and "a national embarrassment" in recent days, Trump met cordially with the justices attending the address.