US markets slip as Treasury Secretary confirms 15% global tariff hike
Bessent signals tariff rates will return to previous levels within five months as administration shifts trade enforcement strategy
US stock futures retreated on Wednesday as Treasury Secretary Scott Bessent confirmed that President Trump's universal import tariff will increase from 10% to 15% "sometime this week," escalating the administration's trade war strategy and adding fresh uncertainty to global markets.
The announcement follows a February Supreme Court ruling that invalidated tariffs previously imposed under the International Emergency Economic Powers Act, forcing the administration to pivot to Section 122 of the Trade Act of 1974. S&P 500 futures dipped approximately 0.1% following Bessent's comments, erasing earlier gains, according to market data from early March trading.
Section 122 grants the president authority to impose temporary import surcharges of up to 15% for a maximum of 150 days when the United States faces significant balance-of-payments problems. Bessent described the new tariff regime as "more durable and robust" due to its success in surviving over 4,000 legal challenges, according to the Benzinga report, despite slower implementation compared to emergency powers.
The Treasury Secretary expressed confidence that the tariff increases are temporary, telling reporters that "it's my strong belief that the tariff rates will be back to their old rate within five months." During the 150-day Section 122 window, the Office of the U.S. Trade Representative and Commerce Department will conduct investigations under Sections 301 and 232 of trade law to establish a more permanent tariff framework, according to legal analysis from international trade law firm S&W Law.
The tariff escalation comes amid broader market volatility stemming from the Supreme Court's February decision, which sent the S&P 500 down 1.8% and the Nasdaq-100 tumbling 2.6% in its immediate aftermath. Investor sentiment has since shifted toward domestically-oriented companies and commodity producers, with small-cap stocks outperforming mega-cap technology firms, according to market commentary from investment research firms.
Adding to the complexity, the U.S. Court of International Trade recently ordered the government to issue refunds for potentially billions of dollars in unlawfully collected tariffs under the invalidated IEEPA framework. A lawsuit initiated by Atmus Filtration Technologies, which claimed to have paid approximately $11 million in illegal tariffs, prompted the refund order. Despite the court ruling, the Trump administration has projected that 2026 tariff revenue will remain "virtually unchanged," even as an estimated $130 to $175 billion in previously collected revenue faces refund claims.
Analysts at major investment banks have noted that the near-term tariff uncertainty creates challenges for multinational companies with complex global supply chains, while potentially benefiting domestic manufacturers and companies with revenue concentrated primarily within the United States. The 150-day timeline for Section 122 tariffs means markets face a prolonged period of uncertainty as the administration conducts investigations that could reshape US trade policy through August and beyond.