WASHINGTON – President Donald Trump escalated his trade offensive on Saturday, announcing a hike in tariffs on all U.S. Imports from 10% to 15%, a move triggered by the Supreme Court’s rejection of his previous attempt to impose sweeping tariffs under emergency economic powers. The increase, effective immediately, represents a further disruption to global trade flows and adds to growing uncertainty surrounding the administration’s economic policies.
The escalation follows a Supreme Court ruling that struck down Trump’s initial tariffs, imposed under a rarely used provision of the International Emergency Economic Powers Act (IEEPA). The court, in a 6-3 decision, found that the president had overstepped his authority in using the law to justify tariffs not directly related to a specific national emergency. Two justices appointed by Trump – Neil Gorsuch and Amy Coney Barrett – joined the majority in overturning the tariffs.
In a post on Truth Social, Trump framed the tariff increase as a response to the court’s “ridiculous, poorly written, and extraordinarily anti-American decision.” He stated the 15% tariff is “fully allowed, and legally tested,” despite the legal challenges anticipated. The administration intends to develop new tariffs it deems “legally permissible” during the next 150 days, the maximum period the current levy can remain in place without congressional approval.
The initial 10% tariff, announced after the Supreme Court’s initial ruling, was itself a retaliatory measure. The latest increase broadens the scope and intensifies the financial impact on businesses and consumers. While the administration has not specified which countries or goods will be most affected, the blanket nature of the tariff suggests a widespread impact across the global supply chain.
The legal basis for the new 15% tariff remains unclear. The administration has indicated it will explore alternative legal avenues to justify the tariffs, but legal experts suggest the path forward will be fraught with challenges. The case that led to the Supreme Court ruling was brought by a group of small businesses and more than a dozen states with Democratic attorneys general, who argued that Trump was improperly using his power to regulate trade to impose taxes.
The economic implications of the tariff increase are significant. A 15% tariff on all imports will inevitably lead to higher prices for consumers and businesses, potentially fueling inflation. Companies that rely on imported materials will face increased costs, which could lead to reduced production or job losses. The impact will likely be felt across a wide range of sectors, from manufacturing and retail to agriculture and technology.
The timing of the tariff increase is particularly concerning, given the current global economic climate. Growth is slowing in many major economies, and geopolitical tensions are rising. The added uncertainty created by the tariffs could further dampen economic activity and exacerbate existing challenges.
The Supreme Court’s decision marked the first time during Trump’s second term that the conservative-dominated court ruled against his use of presidential power. Trump responded to the ruling with sharp criticism of the justices, stating he was “ashamed” of some of them for “not having the courage to do what’s right for our country.” He described the decision as “terrible” and an “embarrassment to their families.”
The administration’s move to raise tariffs despite the Supreme Court’s ruling underscores its commitment to a protectionist trade policy. Trump has long argued that tariffs are necessary to protect American jobs and industries from unfair competition. However, critics contend that tariffs ultimately harm the U.S. Economy by raising costs for consumers and businesses and disrupting global trade.
The 150-day window provided by the current legal framework will be crucial. The administration must either secure congressional approval for an extension of the tariffs or develop a new legal justification for maintaining them. Failure to do so could result in the tariffs being lifted, potentially easing some of the economic pressure but also signaling a retreat from the administration’s trade agenda.
South Korea is already reacting to the situation, with government ministers scheduled to meet to review the Supreme Court ruling and the newly announced tariffs. This highlights the global ripple effect of the U.S. Policy shift and the potential for retaliatory measures from other countries.
The situation remains fluid and is likely to evolve rapidly in the coming weeks and months. Businesses and investors will be closely monitoring developments and assessing the potential impact on their operations and portfolios. The long-term consequences of the tariff increase will depend on a variety of factors, including the administration’s ability to navigate the legal challenges and the response of other countries.
