Dow Jones Climbs as Trump’s 10% Tariffs Kick In

After closing with a 1.66% loss on Monday, the Dow Jones (DJIA) opened Tuesday in positive territory.

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President Trump’s 10% global tariffs under Section 122 of the Trade Act of 1974 went into effect at 12:01 a.m. Eastern Time today. Over the weekend, he announced that the rate would be 15%, although the higher rate has not yet been implemented. The White House is preparing to lift the tariff rate higher, according to a Trump administration official, with the timing still unclear.

Trump Turns to Section 122 After SCOTUS Ruling

Section 122 allows the president to impose tariffs of up to 15% for 150 days to address a major balance-of-payments deficit. The tariffs can be extended with congressional approval, although Senate Democrats have already signaled that they will vote against an extension.

Trump’s tariff policy took a hit last week after the Supreme Court declared sweeping tariffs under the International Emergency Economic Powers Act (IEEPA) illegal, forcing him to pivot to another legal measure.

With the new 10% tariffs, the average U.S. import rate is at 10.2%, down from 13.6% before the SCOTUS ruling, according to Bloomberg. A 15% tariff would bring the average rate to 12.1%.