Global tariffs reignite challenges for HR leaders as well
US President Donald Trump's decision to push ahead with a 15% global tariff on most US imports is straining ties with key allies, just days after the US Supreme Court ruled he had illegally used emergency powers to impose earlier duties.
Australia, Singapore, and Japan have all moved quickly to seek clarity or exemptions, underscoring how far‑reaching the temporary import duty could be for trading partners and multinational employers.
Supreme Court strikes down tariffs
On February 20, the US Supreme Court ruled that Trump had unlawfully used the 1977 International Emergency Economic Powers Act to justify sweeping tariffs on imports from around the world, declaring many of those duties illegal and reaffirming that peacetime tariff authority rests with Congress.
Trump attacked the ruling at a press conference, calling the justices who ruled against him "a disgrace to the nation" and vowing to deploy "very powerful alternatives" to restore and expand his tariff programme.
Within hours, he announced a new 10% "global baseline" tariff under Section 122 of the Trade Act of 1974, which allows a president to impose temporary tariffs for up to 150 days. He has since said he will increase that to the statute's 15% ceiling.
How the new tariff works
A White House fact sheet dated February 20 says Trump has signed a proclamation imposing a "10% ad valorem import duty on articles imported into the United States" for 150 days, invoking his authority under Section 122 to address "fundamental international payment problems" and a large US balance‑of‑payments deficit.
The temporary duty is due to take effect on February 24 at 12:01 a.m. Eastern.
According to the White House, some imports are excluded because of the needs of the US economy or to make the measure more effective.
In addition, the duty does not apply to goods already subject to Section 232 national‑security tariffs; USMCA‑compliant goods from Canada and Mexico; or textiles and apparel that enter duty‑free from Central American and Caribbean partners under the DR‑CAFTA agreement.
A separate executive order continues the suspension of duty‑free de minimis treatment for low‑value shipments – including parcels sent by post – which will also be subject to the temporary duty.
Australia: Examine all options to avoid 15% levy
Australia, a long‑time US ally, has signalled it will fight for relief.
In a statement on Sunday, Australian Trade Minister Don Farrell said he was working with Australia's embassy in Washington to "assess the implications and examine all options."
"Australia believes in free and fair trade. We have consistently advocated against these unjustified tariffs," Farrell said, as quoted by The Guardian.
The minister is expected to raise the issue with senior US officials when he travels to Los Angeles this week for the G'Day USA event.
Singapore outlines support
Meanwhile, Singapore's Ministry of Trade and Industry (MTI) said it is monitoring the situation closely, while outlining efforts to support businesses.
"The Singapore Government is monitoring the situation closely and will engage our US counterparts to seek clarity on the implementation of the new Section 122 tariffs and processes for tariff refunds," the MTI statement said.
"We will also work with our tripartite and industry partners through the Singapore Economic Resilience Taskforce (SERT) to provide timely information to our businesses and workers and gather feedback on how they are affected."
The ministry has also urged firms to tap measures announced in Budget 2026, including a corporate income‑tax rebate and enhanced grant support under schemes such as the Market Readiness Assistance grant and the Business Adaptation Grant, as well as higher loan limits under the Enterprise Financing Scheme.
Japan aims to preserve 2025 deal
Japan, a major US trading partner that concluded a trade and investment package with Washington last year, is seeking assurances it will not be disadvantaged by the new regime.
According to a Reuters report, the Japanese government said it has asked that tariff treatment under the new US measures be "as favourable as an agreement reached by the two sides last year."
That July 2025 agreement reportedly cut tariffs on autos and other goods to 15%, while Japan agreed to a US$550 billion package of loans and investment into the US.
Chief Cabinet Secretary Minoru Kihara told reporters that both sides reaffirmed they would continue implementing the 2025 accord "in good faith and without delay," and that Tokyo would "continue asking the United States to implement it steadily" while monitoring developments.
What this means for HR leaders
For multinational employers, the combination of a 15% global tariff, exemptions that vary by product and origin, and a 150‑day legal clock creates significant planning challenges – particularly for HR leaders now being asked to convert macro‑level policy shocks into workforce decisions.
Tariffs announced by Trump last year prompted 37% of employers to consider adjusting workforce planning and 26% to implement hiring freezes, according to the Institute for Corporate Productivity (i4cp).
Lorrie Lykins, vice president of research at ic4p, wrote last year that HR leaders must stay "informed, involved, and available to their teams."
"This starts with a deep understanding of the current landscape, the potential effects of tariffs on the industry and the organization, its workforce (employee experience, engagement, well-being, etc.), and business strategy," Lykins said in the article.
According to the expert, strategies that HR leaders could employ in responding to US tariffs include:
- Ensure that the entire team understands the implications and scope
- Prepare for difficult conversations and decisions on potential workforce reductions, restructuring, or adjustment in benefits
- Consider talent engagement and retention
- Coordinate with teams directly impacted by tariffs
- Be alert to government announcements and updates to tariff policies that might affect their industry
