Washington – US President Donald Trump has escalated a trade dispute with the world, announcing an increase in his newly implemented global tariff to 15 percent, less than 24 hours after initially setting it at 10 percent. The move follows a Supreme Court ruling on Friday that struck down his previous system of tariffs, prompting a swift and defiant response from the administration.
The latest announcement, made via a social media post on Saturday, , signals a hardening of the President’s stance on trade policy. Trump stated the increase was “based on a thorough, detailed, and complete review of the ridiculous, poorly written, and extraordinarily anti-American decision on Tariffs issued yesterday,” referring to the Supreme Court’s judgment.
The 15 percent tariff, effective immediately, applies to imports from all countries, a broad-brush approach that diverges from the more targeted tariffs previously employed. While the administration has not specified exemptions, the move is likely to impact major trading partners including Canada, Mexico, China, Japan, and the European Union.
The Supreme Court’s decision on , invalidated the use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs, a legal basis Trump had relied upon extensively. The court ruled that Congress holds the constitutional authority to regulate international trade through tariffs, effectively limiting the President’s ability to unilaterally impose such duties.
In response to the ruling, Trump’s administration swiftly invoked Section 122 of the Trade Act of 1974, which allows the President to impose tariffs of up to 15 percent for a period of 150 days to address significant trade imbalances. The initial 10 percent tariff announced on Friday was implemented under this authority. Saturday’s increase to 15 percent maximizes the permissible rate under the law.
The use of Section 122 is unprecedented in its scope. While the law has been used previously, it has never been applied to impose broad-based tariffs across all trading partners. The administration argues the measure is necessary to protect American industries and address long-standing trade deficits, a core tenet of Trump’s economic agenda.
The timing of the tariff implementation is significant. The 150-day window granted by Section 122 will require the administration to seek Congressional approval for any extension beyond that period. This raises the prospect of a legislative battle over trade policy, potentially complicating the administration’s efforts to maintain the tariffs long-term.
The immediate impact of the tariffs remains uncertain. Economists predict the move will likely lead to increased costs for consumers and businesses, potentially fueling inflation. The extent of the impact will depend on how trading partners respond, with the possibility of retaliatory tariffs from other nations.
Prior to the Supreme Court ruling, tariffs on imports from Japan and the European Union’s 27 member states stood at 15 percent. The new tariffs will likely result in a reduction of duties for countries that previously faced higher rates under the IEEPA-based system, such as Mexico, Canada, and China. However, the overall effect is expected to be a significant increase in trade barriers globally.
The administration has indicated it will continue to evaluate and refine its trade policies in the coming months. Trump stated that his administration would “determine and issue the new and legally permissible Tariffs, which will continue our extraordinarily successful process of Making America Great Again – GREATER THAN EVER BEFORE!!!”
The move has drawn criticism from trade experts and international organizations, who warn of the potential for a global trade war. Concerns have been raised about the disruption to supply chains and the negative impact on economic growth. The coming weeks will be crucial in determining how the international community responds to the latest escalation in trade tensions.
