Washington D.C. – US President Donald Trump escalated trade tensions Saturday, announcing an immediate increase in global tariffs from 10% to 15% following a Supreme Court ruling that curtailed his authority to impose sweeping duties under emergency powers. The move, delivered via a post on his Truth Social platform, signals a renewed commitment to protectionist policies despite legal setbacks.
The Supreme Court’s decision on struck down the use of the International Emergency Economic Powers Act (IEEPA) as justification for broad tariffs, marking a significant defeat for the administration. The court found that IEEPA did not authorize the President to impose tariffs. In response, Trump swiftly invoked Section 122 of the Trade Act of 1974, which permits tariffs of up to 15% for 150 days to address “large and serious” balance-of-payment issues. However, these tariffs require congressional approval for extension beyond that period.
“Based on a thorough, detailed and complete review of the decision on tariffs issued yesterday by the United States Supreme Court, please let this statement serve to represent that I, as President of the United States of America, will be, effective immediately, raising the 10 per cent worldwide tariff on countries to the fully allowed and legally tested 15 per cent level,” Trump stated. He further indicated that his administration would determine and announce revised tariff levels for individual countries in the coming months, operating within the legal limits established by Section 122.
The initial 10% across-the-board tariff was announced immediately after the Supreme Court’s ruling. This latest escalation demonstrates Trump’s willingness to utilize available legal avenues to implement his trade agenda, even after facing judicial challenges. The administration framed the move as continuing “our extraordinarily successful process of Making America Great Again – GREATER THAN EVER BEFORE.”
The Supreme Court’s ruling was met with varied reactions internationally. Canada welcomed the decision, characterizing the previous levies as “unjustified.” European nations, including the United Kingdom, Germany and the European Union, responded with caution, stating they were analyzing the court’s decision and in contact with the Trump administration.
Trump’s reliance on tariffs as a central economic and foreign policy tool has been a defining feature of his presidency. These measures have fueled a global trade war, impacting financial markets and contributing to economic uncertainty worldwide. The initial implementation of tariffs during his second term alienated numerous trading partners and disrupted established trade relationships.
The administration had previously projected that tariffs would generate trillions of dollars in revenue for the United States over the next decade. However, the government has not released tariff collection data since , raising questions about the actual financial impact of these policies. This lack of transparency has drawn criticism from economists and trade analysts.
The legal basis for the new tariffs, Section 122 of the Trade Act of 1974, focuses on balance-of-payment issues. This differs from the previously challenged IEEPA, which relied on claims of national emergency. While Section 122 provides a legal pathway for the tariffs, its 150-day limit and potential for congressional oversight introduce a degree of uncertainty. The administration’s ability to sustain these tariffs long-term will depend on securing congressional support or identifying alternative legal justifications.
The immediate impact of the 15% tariff will likely be felt across a wide range of industries, increasing costs for businesses and potentially leading to higher prices for consumers. Supply chains, already strained by geopolitical factors, could face further disruption. The extent of the impact will depend on how trading partners respond and whether retaliatory measures are implemented.
Analysts are closely watching for the specific tariff rates that will be assigned to different countries in the coming months. The administration’s decisions in this regard will signal its priorities and potentially exacerbate existing trade disputes. The lack of detailed information regarding these future adjustments adds to the uncertainty surrounding the new tariff regime.
The situation remains fluid, and the long-term consequences of Trump’s latest tariff hike are yet to be seen. The administration’s commitment to protectionist policies, coupled with the ongoing legal and political challenges, suggests that trade tensions are likely to remain elevated in the foreseeable future.
